The Elliott Wave Principle: A “Marvel” of Technical Analysis

Charts, Commentary, News, Stocks, Technical Analysis

Our FREE webinar “How to Spot Reliable Trade Setups in Any Market and Any Time Frame” is back by popular demand

By Elliott Wave International

Just when you thought there’d been every possible adaptation of the Marvel comics movie franchise, we’ve thought of one more: A Marvel installment based on financial market analysis.

At one end of this Marvel market universe is Technipede: Like the insect he’s named for, Technipede uses hundreds of technical disciplines to stand on for evaluating a market’s strength or weakness. Bollinger bands, candlesticks, pivot points, TRIX, harmonics, advance/decline, and on — a different technical “leg” for each market and each time frame.

On the other end is bulging muscled Fundamentalist: Hero of the mainstream, Fundamentalist mines the news for every story that may affect future price action — supply/demand data, earnings, scandals, profits, political disruptions, weather patterns, and so on.

But neither one of these figures is any match for the most powerful character in this Marvel market universe — Jeffrey Kennedy, editor of our Trader’s Classroom and Commodity Junctures Service. Jeffrey’s strength comes from 25-plus years of mastering the Wave Principle and its ability to identify high-confidence trade setups in any market, across any time frame.

Every trading day, Jeffrey delivers the benefits of Elliott analysis to subscribers, via price charts in a wide variety of real-world markets. Take, for example, the retail king Amazon Inc. In the fall of 2018, Amazon was falling hard amidst a broader “meltdown” in FAANG stocks. Wrote one October 29 Bloomberg:

“How long can they go? That’s the key question for traders looking at some of Wall Street’s largest technology and internet stocks. People keep calling bottoms and getting hurt; they’re trying to catch falling knives.”

But in his October 30 Trader’s Classroom video lesson, Jeffrey showcased one of the five principle benefits of Elliott wave analysis; namely, its ability to determine the maturity of a trend. There, Jeffrey identified Amazon’s 2018 selloff as a fourth -wave correction.

Using the Elliott guideline of the depth of corrective waves, Jeffrey pinpointed a probable end to Amazon’s selloff “at or near the prior fourth wave extreme,” namely the lows seen in February and March of 2018. That meant Amazon had “another $100 or $200 bucks to the downside” before bottoming. (Jeffrey’s chart reprinted below)

AMZN 1997-2018

From there, Amazon continued its selloff into late December before settling 177 bucks lower, just as Jeffrey anticipated, a beautiful opportunity for traders.

What about a smaller time frame? Here, we go to the August 15 Trader’s Classroom where Jeffrey used one of the three cardinal Elliott wave rules to manage near-term risk in Dollar General (DG). He identified a wave 4 pullback, which, if correct, meant prices could not enter the price territory of wave 1 — 126.55. This established a clear, make-or-break level to place a protective stop. (Jeffrey’s chart reprinted below)

Dollar General 1999-2019

If prices stayed above that level, then DG would present a strong “buying opportunity” in a fifth wave rally to the “150-155 area.” And that’s exactly what happened via a powerful gap up and weeks long rally into Jeffrey’s upside target window.

Dollar General Corp 180

What about an even smaller time frame for one of the most volatile commodity markets — crude oil? In the Sept 13 Daily Commodity Junctures, Jeffrey showed a core Elliott wave pattern on crude’s price chart — a contracting triangle. This pattern lingers sideways for a frustratingly long time, only to resolve in a powerful thrust. Armed with this knowledge, Jeffrey set the stage higher and said, “I won’t be surprised to see it pop up into the 60’s.” (Jeffrey’s chart reprinted below)

Crude Oil NYMEX 1999-2019

The next trading day, crude gapped up in its largest single-day rally since the 1991 Gulf War.

Okay, there’s obviously no such thing as a Marvel market universe. Elliott wave analysis is not akin to Iron Man’s shield of invincibility. But as these examples from Jeffrey Kennedy show, having Elliott in your trading arsenal makes it very possible to identify high-confidence opportunities in actual markets.

Which is why we’ve decided to rebroadcast one of the most invaluable resources of Elliott education — “How to Spot Reliable Trade Setups in Any Market on Any Time Frame,” co-taught by — you guessed it — Jeffrey Kennedy.

In this 45-minute long webinar, Jeffrey joins EWI’s Interest Rate Pro Service editor Jordan Kotick, to offer a comprehensive and engaging presentation of the most important aspects of the Wave Principle, including:

  • What is Elliott wave analysis and why should somebody pay attention to it?
  • How Elliott provides specific points of invalidation for every trade
  • The 5 core Elliott wave patterns that appear in prices 80% of the time
  • The 3 most common pitfalls of trading which thwart success

— And much, much more

The best part is, this 45-minute webinar is FREE to Club EWI members! You may not walk away a superhero; but you will have a supreme understanding of all things Elliott and its ability to identify trade setups in any market, on any time frame.


Learn More and Sign Up Now


As always, please use protective buy and sell stops when trading futures and options.

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

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