Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Learn the Why, What and How of Elliott Wave Analysis

/ Elliott Wave Theory Mar 11, 2017 - 02:46 AM GMT

By: EWI

You Asked, We Answered in our Latest "Video Mailbag"
March 2017 Episode

In our latest "Video Mailbag," Robert Kelley and Steve Craig, two of our global analysts, sit down to answer questions submitted by viewers like you.


[Editor's Note: The text version of the video is below.]


Learn the Why, What and How of Elliott Wave Analysis
Watch the Elliott Wave Crash Course, FREE

This three-video series demolishes the widely held beliefs about investing and provides a basis for using Elliott wave analysis as an alternative in your own trading and investing decisions.

Access your free resource


Questions answered in this episode:

  • "What is the World Stock Index?" @ 0:13
  • "Usually people are familiar with Elliott Waves on an individual country index. I'm wondering if Elliott Wave patterns are as clear and compelling on a basket such as the World Stock Index?" @ 0:40
  • "After a fourth wave triangle, how do I estimate the length of a potential fifth wave extension?" @ 1:31
  • "Can wave 3 be more than 2.618 times the length of wave 1?" @ 2:08
  • "Is there a limit to the number of subwaves?" @ 3:11

*********

Alexandra Lienhard: Welcome to this month's episode of ElliottWaveTV Viewer Mailbag. Robert Kelley, who edits Elliott Wave International's US Intraday Stocks Pro Service with Robert Kelley sat down with us this month to answer a couple of questions. The first one comes from Benjamin from St. Louis, Missouri, who asks, what is the world's stock index?

Robert Kelley: Well, the Dow Jones Global World Stock Index is made up of 47 different country stock indexes. And it allows-- it represents 95% of what's available to invest in around the world. So it's a really broad measure of world equity prices.

AL: Stan from Geneva, Switzerland has a follow-up question. Usually people are familiar with Elliott Waves on an individual country index. I'm wondering if Elliott Wave Patterns are as clear and compelling on a basket such as the world's stock index?

RK: Actually, yes, it's surprisingly very good representation of mass psychology. It's probably the ultimate mass psychology, considering what it's covering. And these patterns definitely have very clear Elliott structures. It counts pretty well, and it kind of smooths out-- because it's so a large basket, it kind of smooths out some of the noise that might occur in a day-to-day situation in a particular market.

AL: Steve Craig, Elliott Wave International's Chief Energy Analyst and editor of EWI's Energy Pro Services also took some time to answer a couple of mailbag questions. Next we have Lynn from San Francisco, California, who'd like to know, after a fourth wave triangle, how do I estimate the length of a potential fifth wave extension?

Steve Craig: Fifth wave extensions are often in Fibonacci proportion to the net distance traveled of waves one through three. For example, multiples of 1.618, 2.0, 2.618. Now, in commodities, bull markets at the larger degree of trend-- for example, primary or cycle-- fourth wave triangles can often precede extended blowoffs.

AL: Our next question is from Sameer from Mumbai who asks, can wave 3 be more than 2.618 times the length of wave 1?

SC: Within impulse waves and expanding diagonals, it is possible for wave 3 to be more than 2.618 times the length of wave 1. There's no set limit on the length of wave 3 relative to wave 1 in those situations, as long as none of the Elliott wave rules are broken. In impulse waves, when wave 3 is extended, you should expect wave 5 to be related to wave 1 by equality, or the Fibonacci ratio 0.618. In contracting diagonals, wave 3 is always shorter than wave 1. And in expanding diagonals, wave 3 is always longer than wave 1. In all cases, wave 3 can never be the shortest wave.

AL: And today's last question comes from John from Pensacola, Florida, who asks, is there a limit to the number of subwaves?

SC: There is no set limit on the number of subwaves. From a measurement standpoint, your only limitation will be the extent to which you are able to identify waves in smaller timeframes given the data that's available.

Learn the Why, What and How of Elliott Wave Analysis

Watch the Elliott Wave Crash Course, FREE

This three-video series demolishes the widely held beliefs about investing and provides a basis for using Elliott wave analysis as an alternative in your own trading and investing decisions.

Access your free resource

This article was syndicated by Elliott Wave International and was originally published under the headline You Asked, We Answered in our Latest "Video Mailbag". EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in