ElliottWaveIdeas.com is operated by Limitless Life Skills LLC. Our team previously wrote some articles on Limitlesslifeskills.com prior to branching off and focusing solely on Elliott Wave Theory. We have brought more than 16 years of knowledge in finance and financial markets with us in this endeavor.
Our methodology relies heavily on statistics and mathematics. We do not perform fundamental analysis of the stocks we follow. The stocks, funds, and indices we follow have clearly identified wave theory traits. Additional exploration of these symbols displays clear waves based on historical trend analysis. We apply the historical trend analysis and apply it to future trends to project length of current movements as well as reversal patterns.
Our techniques took nearly all of those discussed in Bennett A. McDowell’s book and added historical studies to complete our analytical model. We find all available timeframes of data for our symbols of interest. We begin by viewing candle charts with one or two-month intervals for each bar. We identify waves at a macro level first and slowly shorten the time intervals until we reach 5-15 minute intervals. See waves in waves in our Elliott Wave Theory area.
Next we calculate the length of each wave and sub-wave. Further calculation of the movement for each wave as well as extensions and retracements of prior waves. All data is compared to similarities across all studied quotes, similar stocks in the industry, and similar stocks in respective indices.
Once the known similar points are identified, it is important to determined what sub-wave the studied stock, fund, or index finds itself. Once the wave is identified, we prove the symbol under current study is not one wave behind or one wave ahead of where we believe it to be. If our suspected wave changes, we re-evaluate whether our new belief is correct by testing one wave behind and one wave ahead of its new suspected position.
Once the exact sub-wave is identified, we take all correlated movement from the past and apply it to the current wave. We identify all possible lengths for this current wave as well as projected reversals levels where this wave could end. Lastly, we add Fibonacci levels to the list of reversal points.
The final steps include identifying ranges for the reversal points. An initial range using all points identified in the previous step yields a large box on a chart. We project the reversal point will occur in this box. We almost always reduce the size of the box and narrow the reversal projections box.
This is a generalized explanation of how we do what we do. You can follow all of our ideas and updates as we publish them. Find and follow us on social media below.