Elliott Wave Theory - A CTCN Article written by Owen Cramer

In Elliott Wave Theory, the larger elliott-wave within a price move are often referred to as impulse waves. These would be either wave 3 in a 1-2-3-4-5 sequence, or wave c in an a-b-c sequence, in both cases these waves or movements are usually the most powerful in the direction of the trend.

The following is a discussion on this pattern and a vehicle to use when a trend has started and you want to get into a market.

The first step in identifying an impulse pattern buy signal is a four day low. This means that the intra day low of the latest trading day must be lower than each of the intraday lows of the previous days. It may be lower than more than three, but it must be at least lower than most recent three.

The second requirement after a four-day low is that an up-close must be achieved. There may be more than one up-close in a row. Also, the up-close may be achieved on the same day as the four day low.

The final pattern set up after one or more up-closes is a down-close which does not make an intraday low, lower than the original four day low. There may be more than one down-close in a row.

Sell entry signals are the reverse of buy entry signals. The preconditions for a sell entry are a four day high followed by a down-close followed by an up-close, without a violation of the original four day high.

This indicator or vehicle can be used to initiate long and short positions, but it is recommended that you use it in conjunction with an overbought or oversold oscillator. You can also use it with a moving average. Through optimization you may find that you can dramatically increase the reliability of this indicator in a particular market.

It's possible C.T.S. a.k.a. "Commodity Trend Service" may be gone! However, this site is here for trading information and some commodities trader alternatives!

Natures Law Secret of the Universe book

This unique learning course is a copy of the very rare and valuable original edition of the book “Nature's Law - The Secret of the Universe,” by R. N. Elliott - published in a very limited edition in 1948 & reprinted by Commodity Traders Club in 1995. Photo-copied & then “scanned” from the original hard to find microfilm. This is what started the “Elliott Wave” popularity for Stock/ Commodities Technical Analysis & Trading Methods

Here are some of the amazing subjects covered so you understand Elliott Wave. You can use it to help you make money trading commodities with lower risk!

Rhythm In Nature, Egyptian Pyramids size - ratios and scaling are based on Natural Laws involving Fibonacci numbers, Sunflower research on how Sunflowers and their seeds conform to exact Fibonacci ratios, How the Washington Monument & US History is ruled by Natural Laws & Fibonacci numbers, Wave knowledge can be applied to stocks-bonds-grains- cotton -coffee & others, Stock market cycles and waves, Corrections, Complex corrections, Triangles, Thrust breakouts, Wave extensions, Correct wave counting, Sideways movements, Irregular tops, Scaling of charts, 13-year triangles, Dow Jones Industrial Avg Analysis and charts, How retracements and patterns maintain 62% ratios, Price of gold, Waves in gold prices, Gold chart and waves for 685 years from the year 1250 thru 1932.

Human activities and patterns also run in waves, more Dow Jones and London Industrials chart analysis, Dow Jones Railroad Index chart and analysis from 1906 thru 1944, Why news events are merely the tardy recognition of natural laws and waves, Natural laws discount the value of sudden major events, Detailed suggestions on maintaining charts, Daily range charts, Hourly charts, Chart paper and chart size, Weekly range charts, Monthly charts, Investment timing, Wave analysis foretells markets future direction, The fact sudden news has little long term effect because it's already reflected in the waves and market cycles.

Continuation of subjects covered:

• Natures Law is a revolutionary forecasting phenomena
• Anticipate market moves rather than follow the moves
• Importance of timing & when to buy & sell
• Bull & bear market tops/bottoms
• Diversification on 5 to 10 markets and not more than one per group
• More facts on the Pyramids
• Proportional Divider 61.8% Ratio Rulers
• The Law of Motion
• Cycles are not uniformly spaced but follow wave patterns
• Dynamic symmetry
• 40 commodities in gold prices chart 1923-1938
• Charts of cotton/copper/NY city temperature

Emotional cycles of individuals, Human emotional cycles avg 33-36 days and resemble market charts, Other human cycles avg 5-weeks, 56-day blood cholesterol cycles, Human cycles basic periods equate to 34 & 55 (day) Fibonacci Numbers, Pythagoras - ratios - mathematics, Minor - intermediate - major activities advance in 5 waves. A drawing of Pythagoras holding a small pyramid and squaring of numbers examples, Trading volume of waves is important, Miscellaneous facts & figures, Bull Market analysis, Parallel lines & base lines on a Dow Jones chart, Reviews, Conclusions.

This work is not a trading system or a trading method. However, a potentially high profit commodity or stock market trading system can be constructed using these theories. In fact, there have been many systems developed based on either Elliott Wave or Fibonacci Numbers, or both combined. The facts presented in this unique work are extremely interesting and in many cases amazing.

This reprint consists of 64-pages - printed on one-side, all scanned into our computer from photocopied pages of R. N. Elliott's original manuscript published in 1946, from a difficult to obtain old microfilm record. The book itself is long out-of-print and seemingly impossible to acquire. The original work was printed in extremely small numbers.

Because we copied from an old and rare microfilm, there are some words that were hard to read but the overall quality and readability is good. We interpolated a couple of those illegible words to avoid any incomplete sentences. Mr. Elliott was not a great writer and also occasionally demonstrated poor grammar, and misspelled some words. Many of those words have been corrected and our grammar checker may have corrected some, but not all of the questionable grammar. We have used spiral-binding so its easy-to-read and lays flat for ease-of-use.

You will get Natures Law Secret of the Universe book for only $67.00 (includes US S&H)

This is a very rare and hard to find work that can help you trade successfully.

Fibonacci numbers may be used in conjunction with other techniques to trade successfully. For example, fibonacci numbers can be used to gauge retracements against the trend for trade entry purposes, for placing stop-loss orders or for trade exits at a set target price.

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