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Wednesday, November 17, 2010

Prechter and CO.

Prechter & co just changed their wave count on this recent rally because it exceeded the old high.  Elliot wave is not exact and can be moulded to fit a bearish bias.  The mistook the BC sequence off the last leg down as some kind of funky "zigzag" (yes they really referred to it as a "zigzag")
Elliot wave is real and it works, but like any technical method it is only a suggestion......  You can't know that what looks like an ABC countertrend is not just 2 of 5 in a primary trend.
I'm about to cancel my subscription.  I think their doctrine is a bad influence on an objective mentality.
*Edit - they're also calling for a dollar reversal after two waves down.  Using the actual theory on a monthly chart, this doesn't make sense and also contradicts their (now modified) stance that stocks have a 4th wave pullback and 5th wave rally soon coming....
Yikes.  WTF is going on with them?  Even their theory disagrees with them.

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