Waves of Life |
KnovaWave and Elliott Wave
KnovaWave is one of the foremost Elliott Wave practitioners today; we utilize the Elliott Wave theory in our Proprietary KnovaWave Trading
methodology. We believe the Elliott Wave Principle provides you with the most objective and disciplined method available for trading. Only a
handful of patterns exist, sometimes easy to recognize especially in strong impulsive waves. The still validated patterns tell you where the
market is heading; in what way (or structure) this will happen and under what circumstances the pattern will produce a stronger probability.
Also the pattern will tell you when it is no longer valid due to price action. The Theory will also allow for several alternative counts.
The key to a successful understanding of the Elliott Wave theory is determining the probabilities of alternative scenarios. This provides
for risk management and stress reduction, you know where you are wrong. However it is the minute degree that traders tend to ignore that is so
critical. The KnovaWave Daily Elliott Wave Newsletter was designed specifically to fill this void.
Our KnovaMind Trading Rooms all utilize the theory and we believe our Daily Audio Visual Elliott Wave Theory Newsletters to be the only Daily
Report available. It has become a favorite of traders and investors in addition to educators and students.
Learn more about the KnovaMind Trading Rooms
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Elliott Wave Theory - an introduction
Elliott Wave Theory was originally espoused by R.N.Elliott in the 1920?s and made popular through the work of Frost and Prechter through their
many books and market calls. Robert R. Prechter calls have since become legendary, and he has gone on to become a best selling author.
Frost and Prechter predicted, in the middle of the crisis of the 70s, the great bull market of the 1980s. Not only did they correctly forecast the bull
market but Robert R. Prechter also predicted the crash of 1987 in time and pinpointed the high exactly.
He followed up with the ensuing bull market and resultant bear market. The KnovaMind partners have been great students of their work and the work of
Mandelbrot who proved the existence of fractals in his book "The Fractal Geometry of Nature" in the 1980?s. He recognized the fractal structure in
numerous objects and life forms, a phenomena Elliott already understood in the 1930s.
Nature?s Design |
Elliott Wave Theory interprets market actions in terms of recurrent price structures. The Wave Principle" is Ralph Nelson Elliott?s discovery that
social, or crowd, behavior trends and reverses in recognizable patterns. Using stock market data as his main research tool, Elliott discovered that
the ever-changing path of stock market prices reveals a structural design that in turn reflects a basic harmony found in nature. From this discovery,
he developed a rational system of market analysis.
Elliott isolated thirteen patterns of movement, or "waves," that recur in market price data and are repetitive in form, but are not necessarily repetitive
in time or amplitude. He named, defined and illustrated the patterns. He then described how these structures link together to form larger versions of
those same patterns, how they in turn link to form identical patterns of the next larger size, and so on.
In a nutshell, then, the Wave Principle is a catalog of price patterns and an explanation of where these forms are likely to occur in the overall path of
market development. Elliott?s descriptions constitute a set of empirically derived rules and guidelines for interpreting market action. Elliott claimed
predictive value for The Wave Principle, which now bears the name, "The Elliott Wave Principle?.
Elliott Wave Theory - the key discovery
Master Elliott Wave tactitican Robert Prechter in an interview in 1998 best describes this;
"Elliott?s most important discovery was that the patterns that develop in the stock market occur at all degrees of trend. The larger patterns
are made up of components that are themselves composed of smaller ones. The same patterns on a smaller scale combine to create any one of those
patterns on a larger scale. The larger pattern will combine with several others of the same degree to create an even larger pattern and so on. He
described in detail exactly what those patterns look like. He identified 13 of them. Only recently has data been available for general stock prices
back to the late 1700s, and the patterns are there as well.
The market has a life of its own. It is mass psychology that is registering. Changes in feelings show up directly as price changes in the
barometer known as the DJIA, or the S&P 500, or any other index. The Wave Principle is a catalog of the ways that the crowd goes from the extreme
point of pessimism at the bottom to the extreme point of optimism at the top. It is a description of the steps human beings go through when they
are part of the investment crowd, to change their psychological orientation from bullish to bearish and back again."
Basically, Market cycles are composed of two major types of Wave:
- Motive Waves (There are two types of motive waves: impulses and diagonal triangles) For every motive wave,
it can be sub-divided into 5 - wave structure (1-2-3-4-5), while for corrective wave, it can be sub-divided into 3 - wave structures
(a-b-c). Their structures are called "motive" because they powerfully impel the market.
- Corrective Wave . Corrective mode is employed by all countertrend interruptions, which include waves 2 and 4 in Figure 1-1.
Their structures are called "corrective" because they can accomplish only a partial retracement, or "correction," of the progress
achieved by any preceding motive wave. The internal structure of the patterns, this will enable you to recognize a pattern within a
pattern.
Elliott Wave Theory - Utilizing it!
KnovaWave recognizes the immense value of the Elliott Wave Theory, but also the complexities and even skepticism of the theory.
We have developed educational and membership structures for true understanding and incorporation in trading and investment plans.
The importance of the theory in our methodology is aptly described by Robert Kelley of E.W.I., a former technical analyst at J.P. Morgan Chase & Co.;
"It’s the single best tool for technical analysis because it provides a framework of expectations and tells you when
you’re wrong.’’
Source: Bloomerg Financial News
Furthermore we recognize that it is not be all and end all of a trading or investment plan. Our KnovaWave Plus* line emphasises this within
KnovaWave Methodology,
for more on our methodology click here.
We provide forecasts on stocks and indexes, foreign exchanges, commodities, sector analysis and fixed interest markets. There exist a multitude
of market analysis services, which predict where a stock may go in price and time. The chaotic nature of markets is volatile and change rapidly,
these longer term objectives are all nice in theory and usually contain unrealistic drawdowns and stop losses. We are aware of the need for
timely analysis and as such provide daily updates in a user-friendly audio video format, which is both educational and designed to have you at
the market. We present the material as an ongoing resource for educational purposes. This provides for immediate use in your own market analysis
and trading.
Fig.1.1 Recognizable Patterns |
We cover long and medium term analysis, and overview intraday charts for both the short-term and long-term trader and to gauge all measures of
wave degree. We have our subscribers informed on a daily basis, a necessity for serious traders utilizing the Elliott Wave Theory in volatile markets.
Wave structures of the largest degree are composed of smaller sub waves, which are in turn composed of even smaller sub waves, and so on, which all have
more or less the same structure (impulsive or corrective) like the larger wave they belong to. Elliott distinguished nine wave degrees ranging from two
centuries to hourly.
The KnovaWave services keep you informed right up to the sub-minute detail with an ever objective and consistent wave count.
Skilled technicians moderate the Trading rooms, Newsletters, Interactive workshops and classes.
and as the Elliott Wave theory can get very complex- especially in corrective waves, it is essential not to lose the theory?s objectivity.
Our technicians will not as they apply the rules and guidelines in an educational and understandable manner.
We will determine alternatives for both internal wave structures and look for other confirmations through the KnovaWave Dynamic Gann methodology,
indicators and Fibonacci ratios.
Learn Elliott Wave Theory!
KnovaWave Interactive Classes
KnovaWave Technicians and educators offer the following interactive classes, click for more information - learn from the best!
KnovaWave Newsletters
The newsletters will help you learn the Elliott Wave Theory! We will cover the principles as only true market behavior can let you.
Our Audiovisual format will have you feel like you are right in a KnovaMind trading room! A time worn phase in trading is ?you learn something
new everyday?, each day you will with the KnovaWave Elliott Wave Products. We offer Newsletters for your different Elliott Wave requirements,
for the Trader-Investor and the Trader-Enthusiast
For the Trader-Investor an Elliott Wave overview:
For the Trader-Enthusiast, the ONLY Daily Audio Visual Interactive
Elliott Wave Report:
Snapshot: Daily Interactive Audiovisual Elliott Wave Newsletter |
In each newsletter we will cover where appropriate the:
- The rules and guidelines of the wave count.
- The internal structure of the patterns, this will enable you to recognize a pattern within a pattern.
- Show you waves 1,3,5, A and C, the impulsive waves.
- Show you all other waves that are corrective, against the trend, and show overlap in their internal structure.
- Label as many scenarios as the Wave Principle allows, with regard to the wave degree or time frame we are analyzing.
- Confirm Fibonacci Time ratios or preferably Fibonacci Time Clusters.
For your trading profitability we will:
- Assess the probabilities of these scenarios by studying their compliance with the permitted internal wave structure, the outcome of the Fibonacci
ratios and the fit of the channels.
- Confirm counts in the sub wave fractal structure.
- Confirm a Fibonacci Level or preferably a Fibonacci Cluster.
- Determine which patterns and alternative wave counts give the best trading opportunities, such as when several alternatives all produce a price
movement in the same direction.
- Determine objective entry points based on patterns.
- Determine objective exit points, also based on patterns. That is we will determine where we are wrong before we place the trade.
KnovaWave Live Audio Trading Rooms
KnovaWave is designed to take the trader into the realms of technical analysis in real time trading situations.
The moderator implements and explains in a manner that allows technical analysis to be implemented and understood. Each trader has the opportunity
to develop a solid grounding in the fields that best suit the trader?s objectives and personality. It may be from understanding the trading floors
and rooms of professionals to understanding chart patterns or the work of luminaries such as W.D. Gann or Ralph Elliott.
KnovaWave
Methodology
Click here to read about it!
As with all the components within the KnovaMind Global Vision KnovaWave is constantly updated and fine tuned to offer you, the trader and
investor the very best technical analysis services available.
We look forward to sharing our knowledge of the theories originally espoused by R.N.Elliott in the 1920?s and made popular through the work of
Frost and Prechter through their many books and market calls. Robert R. Prechter calls have since become legendary, and he has gone on to become a best
selling author. Frost and Prechter predicted, in the middle of the crisis of the 70s, the great bull market of the 1980s. Not only did they correctly
forecast the bull market but Robert R. Prechter also predicted the crash of 1987 in time and pinpointed the high exactly.
He followed up with the ensuing bull market and resultant bear market. The KnovaMind partners have been great students of their work and the work of
Mandelbrot who proved the existence of fractals in his book "The Fractal Geometry of Nature" in the 1980?s. He recognized the fractal structure in
numerous objects and life forms, a phenomena Elliott already understood in the 1930s.
At KnovaMind our motto is, Learn-profit-enjoy, Elliott Wave Theory through the KnovaWave curriculum and Trading services is the best proponent
available to achieve that goal.
Maximize opportunity and Minimize risk
Learn-Profit-Enjoy
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