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The New Elliot Wave Rule

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      H E

     N E W  E L L I O W A V E

    R U L E

    ACHIEVE DEFINITIVE

    WAVE COUNTS

    © 2009 T.S. Hennessy

     All rights reserved worldwide.

    YOU HAVE THE RIGHT TO DISTRIBUTE THIS EBOOK REE!Y BUT "OT

    TO SE!! IT OR #ODIY IT. $le%se See Rights se&tion ne't (%ge.

     Addition%l )o(ies *%y +e o+t%ined dire&tly ,ro*-

    htt(-newelliottw%ver/le.orgin,oe+oo0.ht*

    Yo/ *%y lin0 to th%t downlo%d reso/r&e dire&tly ,ro* yo/r we+site +log lens1 et&.

    eel ,ree to give this e2+oo0 to %nyone yo/ ,eel

    *ight ,ind it /se,/l.

    3

    http://newelliottwaverule.org/info/ebook.htmhttp://newelliottwaverule.org/info/ebook.htm

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    RIGHTS SE)TIO"

     All rights reserved worldwide.

    The &ontent o, this (/+li&%tion is &o(yrighted

    4 +y To* Hennessy1 3556. Altho/gh this is % ,ree e+oo01

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    !EGA! STATE#E"TS

    Gener%l Ter*s o, Use

    THE I"OR#ATIO" $ROVIDED I" THIS DO)U#E"T IS OR EDU)ATIO"A! $UR$OSES O"!Y.IT IS $ROVIDED AS GE"ERA! #ARKET )O##E"TARY1 A"D DOES "OT )O"STITUTEI"VEST#E"T ADVI)E. "EITHER THE AUTHOR "OR ASSO)IATES1 DISTRIBUTORS1 HEIRS OR

     ASSIG"S SHA!! A))E$T !IABI!ITY OR A"Y !OSS OR DA#AGE1 I")!UDI"G 7ITHOUT!I#ITATIO"1 A"Y !OSS O $ROIT1 7HI)H #AY ARISE DIRE)T!Y OR I"DIRE)T!Y RO# USE

    O OR RE!IA")E O" SU)H I"OR#ATIO". THERE IS "O 7ARRA"TY O A"Y KI"D.

    Re=/ired Ris0 Dis&los/re > The Ter* ?Se&/rities@ Sh%ll %((ly to A!! in%n&i%l Instr/*ents.

    SE)URITIES TRADI"G OR I"VESTI"G )ARRIES SIG"II)A"T RISK A"D #AY "OT BESUITAB!E OR EVERYO"E. THE $OSSIBI!ITY EISTS THAT YOU )OU!D SUSTAI" A !OSS OSO#E OR A!! O YOUR I"ITIA! I"VEST#E"T THEREORE YOU SHOU!D "OT I"VEST#O"EY THAT YOU )A""OT AORD TO !OSE. THE TRADI"G STRATEGIES DIS)USSED #AY"OT BE SUITAB!E OR A!! I"VESTORS DE$E"DI"G U$O" THEIR S$E)II) I"VEST#E"TOBCE)TIVES A"D I"A")IA! $OSITIO". I"VESTORS #UST #AKE THEIR O7" I"VEST#E"TDE)ISIO"S I" !IGHT O THEIR O7" I"VEST#E"T OBCE)TIVES1 RISK $ROI!E1 A"D

    )IR)U#STA")ES A"D USI"G SU)H I"DE$E"DE"T ADVISORS AS THEY BE!IEVE"E)ESSARY. THEREORE1 THE I"OR#ATIO" $ROVIDED HEREI" IS "OT I"TE"DED TOGIVE I"VESTORS S$E)II) ADVI)E AS TO 7HETHER THEY SHOU!D E"GAGE I" A$ARTI)U!AR TRADI"G STRATEGY. I" ADDITIO"1 THE I"OR#ATIO" $ROVIDED HEREI" HASBEE" $RE$ARED OR I"OR#ATIO" $UR$OSES O"!Y A"D IS "OT A" OER TO BUY ORSE!!1 OR A SO!I)ITATIO" O A" OER TO BUY OR SE!! THE SE)URITIES #E"TIO"ED OR$ARTI)I$ATE I" A"Y $ARTI)U!AR TRADI"G STRATEGY. #ARGI" REUIRE#E"TS1 TA)O"SIDERATIO"S1 )O##ISSIO"S1 A"D OTHER TRA"SA)TIO" )OSTS #AY SIG"II)A"T!Y

     AE)T THE E)O"O#I) )O"SEUE")ES O THE TRADI"G STRATEGIES DIS)USSED A"DI"VESTORS SHOU!D REVIE7 SU)H REUIRE#E"TS 7ITH THEIR !EGA!1 TA A"DI"A")IA! ADVISORS. URTHER#ORE1 SE)URITIES TRADI"G E"TAI!S A "U#BER O

    I"HERE"T RISKS BEORE E"GAGI"G I" SU)H TRADI"G A)TIVITIES1 I"VESTORS SHOU!DU"DERSTA"D THE "ATURE A"D ETE"T O THEIR RIGHTS A"D OB!IGATIO"S A"D BE

     A7ARE O THE RISKS I"VO!VED. THE I"OR#ATIO" OR DATA $ROVIDED HEREI" IS BASEDO" I"OR#ATIO" GE"ERA!!Y AVAI!AB!E TO THE $UB!I) RO# SOUR)ES BE!IEVED TO BERE!IAB!E. "O RE$RESE"TATIO" IS #ADE THAT IT IS A))URATE1 )O#$!ETE OR )URRE"TOR THAT A"Y RETUR"S I"DI)ATED 7I!! BE A)HIEVED. )ERTAI" ASSU#$TIO"S HAVE BEE"#ADE I" THIS A"A!YSIS1 7HI)H #AY I#$!Y $ROCE)TED RETUR"S 7OU!D BE A)HIEVED.)HA"GES TO THE ASSU#$TIO"S #AY HAVE A $ARTI)U!AR I#$A)T O" A"Y RETUR"S.

    Re=/ired Dis&l%i*er )T) R/le .F

    HY$OTHETI)A! OR SI#U!ATED $EROR#A")E RESU!TS HAVE )ERTAI" I"HERE"T!I#ITATIO"S. U"!IKE A" A)TUA! $EROR#A")E RE)ORD1 SI#U!ATED RESU!TS DO "OTRE$RESE"T A)TUA! TRADI"G. A!SO1 SI")E THE TRADES HAVE "OT BEE" A)TUA!!YEE)UTED1 THE RESU!TS #AY HAVE U"DER2 OR OVER)O#$E"SATED OR THE I#$A)T1 I

     A"Y1 O )ERTAI" #ARKET A)TORS1 SU)H AS !A)K O !IUIDITY. SI#U!ATED TRADI"G$ROGRA#S I" GE"ERA! ARE A!SO SUBCE)T TO THE A)T THAT THEY ARE DESIG"ED7ITH THE BE"EIT O HI"DSIGHT. "O RE$RESE"TATIO" IS BEI"G #ADE THAT A"Y

     A))OU"T 7I!! OR IS !IKE!Y TO A)HIEVE $ROITS OR !OSSES SI#I!AR TO THOSE SHO7"

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    DEDI)ATIO"

    irst I wo/ld li0e to dedi&%te this +oo0 to *y wi,e S%ndy1 who is % never2endingins(ir%tion to *e.

    "e't it is i*(ort%nt to re&ognie the i**ense v%l/e in the origin%l wor0 o, R.".Elliott1 %s well %s the dedi&%ted %nd (roli,i& Ro+ert $re&hter1 Cr.1 %nd others whoh%ve wor0ed diligently to (ro*ote Elliotts 7%ve $rin&i(le.

    in%lly it see*s %((ro(ri%te to give % little *ore re&ognition to th%t &ohesive ,or*whi&h is %t wor0 in *%r0ets. 7e %re &onst%ntly o+serving it1 whether we %re%w%re or not. Th%t is the ,o/nd%tion on whi&h %ll this rests...

    $hi > the Golden R%tio > F.FJ :  F :  .FJ > i+on%&&i series n/*+ers > theintern%l n/*eri&%l rel%tionshi(s th%t r/n +ene%th the s/r,%&e o, the 7%ves.

    This +oo0 will +e % (r%&ti&%l loo0 %t w%ve str/&t/re. 7e wont +e going into thesen/*eri&%l rel%tionshi(s %t %ll here. However1 this +oo0 wo/ld not +e here i, wewere not o+serving the res/lts o, these ,%&tors.

    7ell1 o01 /st this one. The &olored line seg*ents in this L (oint St%r %re e%&hde(i&ting the rel%tionshi( o, the Golden R%tio %s yo/ *ove ,ro* one length to thene't &losest length.

    L

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    Table of Contents

    Introd/&tion....................................................................................................................J

    7h%t Is In This Boo0.........................................................................................J7h%t Is "ot In This Boo0..................................................................................J

    )h%(ter One..................................................................................................................6

     A&hieve De,initive 7%ve )o/nts.............................................................................6

    The End G%*e.................................................................................................6R.". Elliotts Unsolved #ystery........................................................................6The ly In The Oint*ent.................................................................................F5

    )on,/sion or Inter(ret%tionM > Res/lts Are The S%*e...................................FF Altern%te )o/nts %nd Blown )%lls %nd )r%y 7%ves...................................F3 Are 7e There YetM.........................................................................................F<

    )h%(ter Two................................................................................................................FL

    )l/es to Good "ews.............................................................................................FL

    In,or*%tion Age...............................................................................................FL$sy&hology And The $sy&hologist..................................................................F

    )h%(ter Three..............................................................................................................FJ

    The Devil In The Det%ils........................................................................................FJ

    )%s/%l O+serv%tion Or A&t/%l )o/nt.............................................................FJ

    )h%(ter o/r...............................................................................................................3F

    The "ew Elliott 7%ve R/le...................................................................................3F

    !etting The 7%ves Tell Their Own Story........................................................3FS%ltw%ter Does "ot B/rn................................................................................3F

     A R/le is Only A R/le I, Its A R/le..................................................................33R/le St%te*ent...............................................................................................3<Give #e #ore Det%il $le%se...........................................................................3LRoo* To Grow................................................................................................3L"ew Degrees O, S&%le...................................................................................3Degrees T%+le.................................................................................................3N"ow 7e )%n Get The /ll View(oint.............................................................3JBetter 7%ve Identi,i&%tion...............................................................................36I, Yo/ )%n ?See@ It1 Its % ?)@ ..........................................................................

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    )h%(ter ive................................................................................................................

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    ntroduction

    The Elliott 7%ve h%s h%d its detr%&tors. Th%t is /nderst%nd%+le. It h%s &ert%inly %lso h%d

    %n enth/si%sti& ,ollowing. This is %lso /nderst%nd%+le

    !hat s n This "ook

    This +oo0 &ont%ins %n /(d%te to the r/les o, Elliott 7%ve.

    In (resenting this to the Investing %nd Tr%ding 7orld1 it is *y intention to ,oreverre*ove the l%+el o, ?Theory@ ,ro* the &o**on ter*1 ?Elliott 7%ve@.

    8"ote- In (er,or*ing % se%r&h engine =/ery with s(e&i,i&s %dded to only ret/rnwe+(%ges th%t &ont%in the (hr%se ?Elliott 7%ve Theory@ in the TIT!E1 the res/lts to((edNL1555 (%ges. This shows the gener%l level o, o(inion o, %n /n(roven :tho/gh &ert%inly(o(/l%r; ,or* o, %n%lysis.9

    It is /n,ort/n%te th%t #r. Elliott hi*sel, &o/ld not give this /(d%te. He h%d *%derevisions +/t ,or this one in (%rti&/l%r he w%s +orn % little to soon. The in,or*%tion heneeded w%s not %v%il%+le to hi*. H%d this +een in&l/ded in the origin%l tre%tise then theentirely disting/ished re(/t%tion he so/ght to %&hieve ,or his dis&overy wo/ld h%ve+e&o*e % re%lity.

    "onetheless1 his intention o, +ringing this so&i%l (%ttern %n%lysis to light ,or the +ene,ito, others w%s &le%r ,ro* his writings. He 0new it w%s signi,i&%nt. Ulti*%tely th%t intentionis &o*ing to ,r/ition.

    !hat s Not n This "ook

    It will +e &onsidered th%t the re%der is %lre%dy ,%*ili%r with the e'isting r/les o, Elliott7%ve. It is re%lly not needed ,or %nother +oo0 to do the &o*(lete r/ndown on&e *ore.

    "o A to P r/leset with %ll the s/ggestions %nd ide%s o, Elliotts origin%l wor0 is here. orthe s%0e o, so*e who *%y +y &h%n&e ,ind this %s their ,irst en&o/nter1 in&l/ded in the

     A((endi' will +e % +rie, o/tline o, 0ey Elliott 7%ve str/&t/res with distin&tions ,or thenew (%rts vs. the &/rrently %&&e(ted st%nd%rds.

    This is % te&hni&%l +oo0 so there %re "o 7%ve ore&%sts.

    J

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    Cha#ter $ne

     Achieve Definitive Wave Counts

    The End %ame

    The o+e&tive o, Elliott 7%ve %n%lysis1 %s in %ll *%r0et %n%lysis1 is to identi,y the Swing$ivot. Identi,ying this %s ne%rly %s (ossi+le %nd in %dv%n&e (rod/&es the +esto((ort/nities. Th%t is the end g%*e %nd o, &o/rse ones (ro,i&ien&y with the tools %ndte&hni=/es will deter*ine how %&&/r%te %nd &onsistent one will +e.

    The de,inition o, % Swing $ivot will +e di,,erent ,or v%rio/s investors %nd tr%ders +/t only%s it rel%tes to the ti*e,r%*e o+e&tive :eg. long2ter*; or the s&%le. In Elliott 7%ve1 this*e%ns Degree o, S&%le or /st Degree.

    Everything whi&h yo/ will need to do to o+t%in the lo&%tion o, % swing (ivot will +eU"DER the degree on whi&h it will o&&/r. By th%t I *e%n the ,in%l det%ils to reve%l theswing (ivot will +e ,o/nd on % ,%ster or shorter ter* th%n the *%r0et *ove*ent de,inedor *%r0ed o/t +y the swing (ivot.

    Yo/ %lso need %ddition%l in,or*%tion ,ro* ABOVE the degree to ins/re &orre&t h%ndling

    o, wh%t is /nderne%th.

     All this in,or*%tion h%s str/&t/re in Elliott 7%ve. Str/&t/re is det%il.

    7e need s/,,i&ient det%il to %&hieve o/r o+e&tive.

    R.N. Elliott&s 'nsolved (ystery

     A h%/nting &%ll &o*es to /s %&ross ne%rly three =/%rters o, % &ent/ry ,ro* % *%ndedi&%ted to det%il. It is &ont%ined in % se&tion o, R.". Elliotts +oo01 The 7%ve $rin&i(le.In th%t +oo01 (/+lished in F6

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    The *%r0et &%lls &o*ing ,ro* Elliotts 7%ve %n%lysis were re*%r0%+le. He w%s+eginning to get re&ognition. So wh%t w%s the thing whi&h he so/ght in v%in %nd other(ro(onents %greed h%d +een el/sive or non2e'istentM

    There w%s % (ro+le* with the 7%ve $rin&i(le. To +e s/re1 it w%s not &o*(letelyins/r*o/nt%+le or yo/ %nd I wo/ld not +e dis&/ssing its str/&t/re %nd r/les.

    It w%s re%lly %n iss/e tho/gh %nd it re*%ins one /( /ntil now. It &%*e down to /s%+ility.

    I, di,,erent (eo(le %rrive %t di,,erent &on&l/sions then wh%t good is the %n%lysiste&hni=/eM It is %lre%dy very well 0nown th%t the te&hni=/e wor0s =/ite well. Yet therewere still %ll these di,,erent inter(ret%tions.

    This */st h%ve dogged Elliott1 even e%rly on1 to the (oint where he st%ted1 ?"ointer(ret%tion o, the 7%ve $rin&i(le sho/ld +e %&&e(ted %s v%lid /nless *%de +y *e or+y % st/dent dire&tly li&ensed +y *e.Q)

    One wo/ld thin0 th%t this *e%ns there w%s % g%(. So*ething w%s not =/ite right.

    #r. Elliott 0new this %nd s%id in F6

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    So it see*s i, the *%r0et &%n go %ro/nd &h%nging the ?St%nd%rd@ l%yo/t then there */st+e so*e ?#odi,ier:s;@ to h%ndle this &h%nge. Otherwise yo/ *ight get lost.

    There were1 +/t they still did. :#odi,iers were %dded > te&hni&i%ns still got lost;.

    This is not s/r(rising +e&%/se not only w%s this e'tension thing %+le to /st ?show /(@1+/t it h%d %nother level o, v%ri%+ility within the v%ri%+ility.

    Elliott 7%ve r/les +%si&%lly show E'tensions %s %n e'tr% w%ve :in&l/ding the intern%lstr/&t/re o, % *otive;.

    C/st on its own1 the e'tr% w%ve wo/ld +e eno/gh v%ri%+ility. It is %lso st%ted1 however1th%t this &%n h%((en in A"Y one o, the three i*(/lse w%ves1 %dding th%t e'tr%v%ri%+ility.

    "ow this goes ,/rther1 %&t/%lly1 +e&%/se the &orre&tive w%ves &ont%in intern%l *otivew%ves whi&h h%ve this +lessed t%lent. Also Elliott h%d % +on/s se&tion &%lled?E'tensions o, E'tensions@.

    Confusion or nter#retation+ , Results -re The ame

     A(%rt ,ro* ti*e el%(sed1 there %re only U$ %nd DO7". I, new w%ves e,,e&tively %dd2on%nd e'tend yo/r &/rrent w%ve1 how do yo/ di,,erenti%te th%t ,ro* the nor*%l /( %nddown o, the w%ve th%t w%s to &o*e ne't1 h%d there +een no e'tensionM

     As eviden&e o, the (ro+le*1 Elliott h%d % &o**ent %+o/t wh%t % tr%der *%y +e %dvisedto do i, holding % (osition %g%inst the :%((%rently /ne'(e&ted; %((e%r%n&e o, %n

    e'tension &ontr%ry to th%t (osition. So/nds li0e % *issed ter*in%l does it notM

    This is de,initely the st/*+ling +lo&0 ,or Elliott 7%ve te&hni&i%ns. This is the re%sonth%t the e'(erts %nd (ro(onents do not shy %w%y ,ro* &o**enting honestly %+o/t thete&hni&%l di,,i&/lty inherent in 7%ve %n%lysis.

    Here is %nother thing th%t Elliott st%ted1 in the se&tion on E'tensions-

    QA thoro/gh /nderst%nding o, e'tensions is very i*(ort%nt. !arnings of this#henomenon have been sought without success  %nd ,or &ert%in re%sons it is(ro+%+le none e'ist.@ :e*(h%sis %dded;*

    I, yo/ &%nnot tell whether the ter*in%l yo/ /st e'(ertly &o/nted w%s the %&t/%l ter*in%lthen yo/ *%y not achieve definitive wave counts. 7itho/t % w%rning yo/ wo/ld +es/+e&t to indeter*in%te lo&%tion1 lost %t se% in the w%ves. 7orse1 i, yo/r inter(ret%tionh%s &onvin&ed yo/ o, the lo&%tion in error %nd ill2%dvised (ositions %re o(ened.

    Being &on,/sed or inter(reting in&orre&tly will not give yo/ good &onsistent res/lts.

    FF

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    -lternate Counts and "lown Calls and &Cra/y !aves&

    Elliott 7%ve is s/((osed to +e % very %&&/r%te %n%lysis te&hni=/e. A&hieving de,initivew%ve &o/nts sho/ld +e ro/tine. Yet there e'ists %nother o/t&o*e whi&h is entirely too&o**on.

    7hether yo/ %re %n investor or tr%der who (er,or*s Elliott 7%ve %n%lysis (erson%lly orone /sing e'(ert servi&es to o+t%in de,initive &o/nts1 %tt%in*ent o, desired res/lts *%yo,ten +e el/sive.

    One is ,irst (resented with %n e'(e&t%tion whi&h is ,%r short o, identi,ying the swing(ivot. This &o*es in the ,or* o, &h%nging the end g%*e to th%t o, (erh%(s 0nowingwh%t the w%ves &o/ld not (ossi+ly do inste%d o, s(e&i,i&%lly &o/nting to % swing (ivot.

    The &o**on ,or*%t is the %rriv%l %t % (oint where indeter*in%te lo&%tion le%ves*/lti(le (ossi+le o/t&o*es. This then introd/&es wh%t is &%lled the ?Altern%te )o/[email protected] is %n in,or*%tion holding (%ttern whi&h de+ilit%tes the te&hni&i%n. In this st%te thereis no longer %n e'isting %n%lysis. Sin&e the res/s&it%tion will re=/ire *ore *%r0et*ove*ent to reve%l %ny 0ind o, tr/ly de,inite lo&%tion1 it is li0e w%iting ,or the res&/eheli&o(ter to %rrive.

    There is %nother %s(e&t o, th%t ,r/str%ting sit/%tion. 7henever %n inter(ret%tion is *%dewhi&h w%s in error %s l%ter (roven +y *%r0et *ove*ent the res/lt is % ?Blown )%ll@.!ets ,%&e it1 we %re %ll h/*%n %nd these things will h%((en. The tro/+le is th%t&o*+ining %ltern%te &o/nt (%r%lysis with +lown &%ll h%rd o/t&o*es ,/rther d%*%ges there(/t%tion o, Elliott 7%ve %nd the &o/r%ge o, so*e to &ontin/e in its (/rs/it.

    "ow &o*es %nother iss/e whi&h is not so */&h % dire&t res/lt o, Elliott 7%ve %s it is inthe gener%l (r%&ti&e o, the %n%lysis +y in&re%sing n/*+ers o, te&hni&i%ns. The s%*esit/%tion th%t #r. Elliott evidently s%w w%s th%t there were so*e th%t si*(ly (er,or*edthe %n%lysis in&orre&tly.

    However1 in his d%y there w%s no &o**only %v%il%+le w%y ,or *ost o, those res/lts to+e (/+lished inst%ntly %nd (r%&ti&%lly ,or ,ree to the entire ind/stry. The internet h%s&h%nged %ll th%t %nd it is gre%t. The dil/tion o, v%lid in,or*%tion &%n +e % &%s/%ltyhowever in th%t ,ree ,lowing environ*ent.

    Th%t is (erh%(s /st % sidenote in the dis&/ssion +/t %s yo/ *%y re%lie1 #r. Elliott isnot the only one &on&erned ,or the re(/t%tion o, this s&ien&e.

    On the ne't (%ge is %n e'%*(le o, so*e %n%lysis ,o/nd online. The (erson is wellversed in *%ny %s(e&ts %nd &ert%inly wor0s h%rd to o+t%in the res/lts. Th%t is &ert%inly%d*ir%+le %nd is not to +e &riti&ied. I* not s/re i, the res/lts %&hieve &o**/ni&%tionto the %/dien&e o, % de,initive w%ve &o/nt or so*ething %0in to % 7e%ther ore&%st1 ,/llo, Altern%te (ossi+ilities1 %nd in this &%se % +lown &%ll whi&h goes down %s /st %notherr%ined o/t event on % ?s/nny@ d%y. 7ill it i*(rove will we &ontin/e to tr/stM

    F3

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    E'%*(le o, )r%y 7%ves > Even i, the &on&l/sions /lti*%tely t/rned o/t to +e &orre&t1is this Hel(,/lM De,initiveM

    -re !e There Yet+

    "o. It %&t/%lly see*s th%t the (r%&ti&e is &h%nging %nd *oving in % dire&tion whi&h

    wo/ld not +e ,%vored +y the %/thor o, ?Elliott 7%ve $rin&i(le@ were he still %live. Viewings/&h e'%*(les in his d%y *ight h%ve (ro*(ted %nother w%rning +y hi* o, %/thenti&ity.Do yo/ see %ny F > 3 > < > > L (rogress l%+els in th%t di%gr%*M

    "otwithst%nding this it is neither Elliott 7%ve (r%&titioners1 nor %dvo&%tes1 (%st or(resent1 nor #r. Elliott hi*sel, who %re %t ,%/lt ,or the gener%l st%te %nd re(/t%tion o,Elliott 7%ve %n%lysis.

    F

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    R.". Elliott set ,or the 7%ve $rin&i(le %n e'tre*ely !o,ty Go%l o, De,initive 7%ve)o/nts +/t w%s not %+le to +ring this %+o/t in &o**on %((li&%tion +y investors.

    7hy notM Is it /st % *%tter o, too */&h wor0 is it too &o*(li&%tedM

    Th%t re%lly &o/ld not +e the re%son +e&%/se %s seen in o/r e'%*(le %+ove1 there %re&ert%inly those who %re willing to (/t ,orth wh%tever level o, e,,ort is needed. Yet they

    %re not %&hieving de,initive w%ve &o/nts or yo/ wo/ld he%r %+o/t it. Th%t internet is verye,,i&ient ,or news o, *ethods whi&h e%rn *oney.

    Then wh%t is 0ee(ing Elliott 7%ve ,ro* +eing wh%t it o/ght to +e1 %n investors *osttr/stworthy %n%lysis te&hni=/eM 7hen I le%rned %+o/t Elliott 7%ve %n%lysis1 I w%nted to/se it to identi,y swing (ivots in % de,initive w%y. Do yo/M Re%d on.

    $nce You 0ave Read Through -nd -re Ready

    To -##ly The New Rule

    "e ure To to# "y The Forum

    For 1iscussions and Com#arisons

    Newelliottwaverule.org Forum 

    F

    http://newelliottwaverule.org/info/forum.htmhttp://newelliottwaverule.org/info/forum.htm

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    Cha#ter Two

    Clues to Good News

    nformation -ge

    ort/n%tely ,or yo/ %nd I1 #r. Elliott le,t so*e &l/es in th%t +oo0 %s to wh%t the re%sonswere +ehind his in%+ility to ,ind the %nswer to his st%ted se%r&h ,or &r/&i%l in,or*%tion.

    One o, the &l/es is rel%ted to so*ething th%t w%s *entioned in the +eginning o, this

    &h%(ter. In %n%lying d%t% > yes th%ts wh%t te&hni&%l %n%lysis is1 d%t% %n%lysis1 it isnever going to hel( in re%&hing &orre&t &on&l/sions i, yo/ %re *issing so*e o, the d%t%.

    Elliott 7%ve str/&t/res %re ,or*ed ,ro* +its o, d%t% 0nown %s ti&0s whi&h %re individ/%ltr%de tr%ns%&tions whi&h list (ri&e1 vol/*e %nd ti*e &%llo/ts. 7e &olle&t these %nd+/ndle the* into &ont%iners &%lled +%rs or &%ndles. 7e ty(i&%lly &hoose % ti*e,r%*e%nd +y doing th%t we v%ry their st%rt %nd end ti*e whi&h will se(%r%te the tr%des o/tsidethose ti*es into other +%rs or &%ndles. 7e will &%ll this d%t% ?Det%il@.

    It w%s st%ted e%rlier th%t we need s/,,i&ient det%il to %rrive %t o/r o+e&tive. !ets he%rwh%t #r. Elliott h%d to s%y.

    He *entioned % list o, &r/&i%l ele*ents ,or Elliott 7%ve rel%ting to in,or*%tion ,low inli=/id *%r0ets with (/+li& (%rti&i(%tion. I wish to dire&t yo/r %ttention to the l%st ite*. Hislist +egins when he st%tes1 Q7hen the *%&hinery des&ri+ed +elow is (resent1 the(%tterns %nd w%ves %re (er,e&ted %nd +e&o*e visi+le to the e'(erien&ed eye.Q

    ... :Re=/ired ele*ents A thr/ D; ...

    QE. D%ily high %nd low r%nge &h%rted in s/&h % *%nner %s will dis&lose the w%ves o, %lldegrees %s they o&&/r.

    The d%ily r%nge o, sto&0 tr%ns%&tions w%s in%/g/r%ted in F63J %nd the ho/rly re&ord inF6

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    B%si&%lly this tells /s th%t det%il is &riti&%l to %llowing the (er,e&tly ,or*ed w%ves to+e&o*e visi+le in %ll degrees. 7ill wor0ing down to within the ho/rly high %nd low r%ngedis&lose the w%ves o, %ll degreesM

    )ert%inly there will &o*e % ti*e when there is hidden det%il or1 ?Hidden 7%ves@. Thiswo/ld +e &%/sed +y (ri&e %&tion where *ore th%n &%n +e seen o, w%ve develo(*entt%0es (l%&e &o*(letely inside the +%r &ont%iners. Th%t will *%0e the &o/nting di,,i&/lt

    +/t &o/ld it &o*(letely ,ool /s %+o/t how the w%ves o, the intern%l str/&t/re %re +/ildingthe e'tern%l or &/rrent degree w%veM

    7ell no sooner did we get the %+ility to h%ve *ore det%il +ene%th the ho/rly re&ord th%no/r =/estion o, dis&los/re o, %ll degrees &o*ing ,ro* /st the ho/rly w%s %nswered.There is sel,2si*il%r ,r%&t%l w%ve +/ilding going on %t */&h s*%ller degree th%n ho/rlydet%il will dis&lose. In ,%&t the Elliott 7%ve (heno*enon e'tends to the ti&0 level.

    This det%il does (l%y % (%rt +/t wh%t i, yo/ were wor0ing on */&h higher degreesM7o/ld det%il ,ro* the lowest degree +e re=/ired to %&&/r%tely *%r0 o,, w%ve (rogressMThis *ight de(end on whether yo/ %re %+le to see %ll the det%il ne&ess%ry whi&h is

    (resent while the w%ve is +/ilding. So*eti*es % &losed +%r does not show its wholestory %nd i, yo/ &%n no longer %&&ess this det%il then %ss/*(tions */st +e *%de.

    To +e s/re1 eno/gh det%il is re=/ired to do this &orre&tly +/t there is %nother %s(e&t towh%t h%s +een o+s&/red ,ro* view ,or so long. Another &l/e */st +e loo0ed into.

    2sychology -nd The 2sychologist

    The whole syste* o, w%ve (%tterns is &onsidered to +e +%sed /(on so&i%l gro/(+eh%vior or % 0ind o, (sy&hology o, the herd so to s(e%0. It is % di,,erent side o,(sy&hology I w%nt to &onsider.

    Elliott 7%ve h%s +een &riti&ied ,or %llowing one to see wh%t they w%nt to see in thew%ve develo(*ent %nd not ne&ess%rily wh%t is &orre&t. I, th%t h%s o&&/rred in %(%rti&/l%r setting the ti*e &o*es when the view(oint &%/ses % de&ision to t%0e entry o,% (osition in the *%r0et. Th%t view(oint is entren&hed +/t the o/t&o*e will not/lti*%tely &o*(ly ,%vor%+ly %nd the error is seen too l%te.

    To /nr%vel this &l/e yo/ will need to see /st how th%t legiti*%te &o*(l%int %+o/t w%ve

    %n%lysis %lso h%s % +ro%der %((li&%tion th%t &o*(ro*ised the develo(*ent o, the r/lesthe*selves.

    To do this % s*%ll de*onstr%tion o, the (ower o, the *ind will +e hel(,/l. On the ne't(%ge is shown % (o(/l%r test whi&h s/((osedly *e%s/res % (ersons intelligen&e :I;.#ost li0ely it is *ore % *e%s/re o, how &%s/%lly it is (resented %nd viewed vers/s howdeter*ined the (%rti&i(%nt is to %void +eing ,ooled sin&e there is % de,inite hint o, this+eing % =/i to &he&0 ones %lertness.

    F

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    This =/i is given +y showing the ,ollowing st%te*ent %nd instr/&ting the (erson to re%dit over /st on&e1 =/i&0ly. They %re instr/&ted not to re2re%d the (hr%se. The ,in%linstr/&tion is to &o/nt the o&&/rren&es o, the letter ?@ within it.

    FN0E1 F3E -RE T0E RE4

    '3T $F YE-R $F CENTF4

    C T'1Y C$("NE1 !T0 T0E

    E52ERENCE $F (-NY YE-R.

    7ell i, yo/ h%ve never seen this one go %he%d %nd &o/nt how *%ny ti*es yo/ see theletter ?@.

    How *%ny did yo/ seeM

    It is %n o+vio/s tri&0 =/estion when (resented in this *%nner %nd this is why it see*s %

    (oor re(resent%tion o, % (ersons I +/t (o( &/lt/re &%n still te%&h /s. The res/lts ,ro*the =/i %re th%t % v%st *%ority will &o/nt three %nd then ,ewer will see ,o/r ,ive %nd si':si' +eing the %&t/%l n/*+er;.

    7hy do *ost (eo(le get the %nswer wrongM It is the sheer (ower o, the *ind th%t &%nignore vis/%l ,%&t %nd th%t re(orts +%&0 only those ?s@ th%t so/nd li0e ?s@ %nd ignoresthose th%t so/nd li0e ?V@ %s in the word ?O@.

    It is &le%r ,ro* *%ny re%l2li,e sit/%tions th%t o/r *ind h%s s/&h % (ower. This(owerho/se %lso h%s % 0nown (ro(ensity to t%0e short&/ts > yes1 we %re %lso l%y.

     Addition%lly we do wh%t we %re told to do.

    There %re %&t/%lly %ll three o, these ele*ents in this &l/e to the v%ri%+ility (ro+le* ,orwhi&h #r. Elliott so/ght % sol/tion.

    "ot only do we see wh%t we w%nt to see +/t we were told th%t #r. Elliott %lone h%d thee'(ertise to de&i(her his syste*. He w%s the e'(ert. Any short&/ts o, the (r%&ti&e whi&hhe h%d instit/tion%lied wo/ld (ersist. He w%s the $sy&hologist.

    Here is where we will get into the +re%0down o, wh%t went wrong. The &o**on (r%&ti&ewhi&h he h%d %do(ted (%rti%lly or (erh%(s (ri*%rily d/e to l%&0 o, det%il wo/ld +e&o*eo/r (r%&ti&e. It /lti*%tely w%s % short&/t > %nd we still do it to this d%y.

    FN

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    Cha#ter Three

    The Devil In The Details

    Casual $bservation $r -ctual Count

    The *%r0et h%s +een shown to +e % sel,2si*il%r ,r%&t%l %t %ll degrees o, s&%le +y R.".Elliott in % *%ster,/l /nveiling o, the re(e%ting (%tterns. In the s%*e wor0 he *%de %nentire syste*%ti& %n%lysis te&hni=/e whi&h will %llow one to tr%&0 the lo&%tion o,re(etition %t gre%ter s&%le in order to (ro,it ,ro* the in,or*%tion.

    In the ,ollowing two di%gr%*s the +%si& *ethod o, &o/nting w%ves is ill/str%ted.

    ro* Elliotts +oo0)

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    "ow one ,ro* % se&tion o, o/r e%rlier e'%*(le.

    "oti&e the str%ight line *ethod th%t is /sed to *%r0 the w%ve (rogress. They %re thes%*e te&hni=/e. Det%il is e,,e&tively red/&ed to % str%ight line %nd % (rogress l%+el gets%ssigned. O,ten the line wo/ld not +e /sed %nd /st % l%+el is shown.

    This is the /nivers%l *ethod. There is nothing wrong with th%t. In ,%&t it is (r%&ti&%lne&essity th%t ,or the *ost (%rt intern%l w%ve ,or*%tion gets ,l%ttened to the &/rrentlysigni,i&%nt degree.

    Being % (r%&ti&%l *ethod *%0es it +e&o*e solidi,ied in o/r *ent%l (ro&esses. Bre%0ing

    th%t down ,/rther we wo/ld see th%t there is &o**only % (%rsing o, s*%ller w%vesthro/gh wh%t is +%si&%lly % )%s/%l O+serv%tion r%ther th%n %n A&t/%l )o/nt.

     An %&t/%l &o/nt o, these s*%ller w%ves wo/ld re=/ire the s%*e level o, det%il %s in o/r&/rrent degree %nd the s%*e s&r/tiny th%t we %re giving o/r &/rrent degree reg%rdingthe &o*(li%n&e with the r/les. Th%t ,/rther +re%0down *%y even re=/ire yet %notherlevel o, d/e diligen&e to +e s/re the +/ild is error ,ree.

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    I, ever there w%s %n o((ort/nity ,or n/rt/ring the tenden&y tow%rd short&/ts %nd seeingwh%t we w%nt to see this is it. Seeing % w%ve th%t %((e%rs to +re%0 in the *iddleM Its %THREE. )%se &losed. ?B@ l%+el %((lied > on to the (ivot1 lo%ded we%(on in h%nd.

    7e A!! do this. So did #r. Elliott. The worse (%rt is there %re (lenty o, sit/%tions whereit is needed. Using histori&%l d%t% ,or whi&h no *ore det%il is %v%il%+le th%n on thedegree whi&h yo/ %re /sing to %n%lye the &o/nts is one s/&h sit/%tion.

    Re*e*+er th%t to h%ndle &/rrent degree &o/nts the rel%tionshi( to the ne't higherdegree */st +e &o/nted &orre&tly. This will ,re=/ently &%ll ,or less det%iled d%t%. Itso*eti*es &%nnot +e hel(ed.

    There %re %lso &ert%in ti*e %nd e,,ort %nd *otiv%tion ,%&tors. In %ny &%se this /*(ing to&on&l/sions is % re%lity ,or %t le%st (%rt o, so*e o, the %n%lysis sit/%tions whi&h will +een&o/ntered.

    There is &ert%inly no =/estion th%t #r. Elliott w%s *otiv%ted to e'(end wh%tever e,,ortth%t it wo/ld t%0e to &o*e to the right &on&l/sions. As (revio/sly st%ted his wor0

    (rod/&ed re*%r0%+le res/lts.

    This e,,ort %nd drive in&l/ded so*e %*%ing g/idelines th%t %*o/nt to wor0%ro/nds ,orthe l%&0 o, % sol/tion to the e'tensions w%rning. They in&l/ded e'tr%neo/s det%il to thew%ve (rints the*selves s/&h %s w%ve &h%r%&teristi&s li0e vol/*e. Also relied /(on w%s,/t/re w%ve develo(*ent re%d +%&0 to v%lid%te the &o/nts %lre%dy &on&l/ded.

    The ,%&t th%t the *%r0et is % sel,2si*il%r design %t %ll degrees or1 % ,r%&t%l1 *%0es it %ne'tre*ely &o*(le' str/&t/re. Elliott w%ve is % re*%r0%+ly si*(le te&hni=/e ,or its%n%lysis.

    7hile #r. Elliott w%s develo(ing this syste* he ,o/nd %nswers whi&h event/%lly led hi*to sol/tions to (ro+le*s. He w%s1 however1 still in develo(*ent *ode /nder less th%nide%l &ir&/*st%n&es. He h%d wh%t %*o/nted to % h/ge de,i&it in %v%il%+le det%il.

    The only dire&tion he &o/ld go to ,ind %nswers1 dee(er down into det%il1 w%s not even%v%il%+le to hi*. I, dee(er %n%lysis wo/ld reve%l th%t % THREE w%s not in ,%&t wh%t it%((e%red then this ,%&t/%l in,or*%tion w%s lost.

    It w%s /nder these &onditions th%t r/les %nd *ethods were engr%ved in stone.

    "ow we /st do wh%t we were told to do +y the )hie, $sy&hologist :%nd we t%0e

    short&/ts %nd see wh%t we w%nt to see;.

    35

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    Cha#ter Four 

    The New Elliott Wave Rule

    3etting The !aves Tell Their $wn tory

    I, the 7%ves do not *%0e errors then let /s listen to the*. It see*s th%t this wo/ld +egetting &loser to the (ri*%ry l%w1 wh%t #r. Elliott w%nted to do %nd o, &o/rse %ll(r%&titioners ho(e to do.

    The (revio/s &h%(ters h%ve +een (/t ,orth in % w%y th%t wo/ld let /s re*e*+er thee'tre*e v%l/e o, Elliott 7%ve %nd its origin%l go%l. They h%ve shown th%t we *%y&ontin/e to reg%rd this s&ien&e very highly %nd yet /nderst%nd th%t there wereo+st%&les %t the ti*e o, develo(*ent %nd &ontin/ing still.

    The s&ienti,i& o+st%&les o, li*it%tions on %v%il%+le det%il h%ve +een re*oved %nd %re nolonger holding /s +%&0. This w%s %n i*(ort%nt (%rt in %llowing the w%ves to tell theirown story &o*(letely +/t not *ore i*(ort%nt th%n the (sy&hologi&%l %s(e&t.

    This */st &ert%inly +e tr/e i, %nything in the w%y o, % "ew R/le &%n &o*e to Elliott7%ve %,ter over N5 ye%rs. So the rest o, the story will &o*e %s % &h%nge in view(oint

    whi&h is wh%t (sy&hology ent%ils. 7e h/*%ns h%ve % *%rvelo/s %+ility > we &%n e%&hview the s%*e thing di,,erently.

    This is %n e'&iting (%rt ,or *e %nd I will &o*e +%&0 to how it &%*e %+o/t th%t theview(oint &h%nged %nd the w%ves were %llowed to s(e%0 ,or the*selves. Be,ore I doth%t however1 it is ne&ess%ry to +re%0 the old view(oint. So here goes.

    altwater 1oes Not "urn

    7ell %&t/%lly it does +/rn. It w%s re&ently de*onstr%ted th%t yo/ &%n ignite s%ltw%terwhi&h is inside % r%diow%ve ,ield. Th%t is not t%l0ing %+o/t ev%(or%tion1 +/t %n %&t/%l+/rning ,l%*e %s % ,/el +/rner (rod/&es. And yet %nother ?%&t@ goes down in ,l%*es.

    The ,%&t th%t we will ,irst de%l with in o/r new view is th%t one whi&h we h%ve dis&/ssed%lre%dy. The (ro+le* with /n(redi&t%+le o&&/rren&e o, e'tensions is %+o/t to dis%((e%r.

    3F

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    The re%son th%t these will no longer e'ist is th%t they never e'isted in the ,irst (l%&e.There is no s/&h thing in Elliott 7%ve %s %n E'tension

    7ell th%t w%s e%sy now w%snt itM Yo/ will never %g%in +e wondering i, %n e'tension willshow /( %nd r/in yo/r e'(e&t%tion o, the %rriv%l o, the ne't w%ve. It will not ever show/( +e&%/se it never did. Yes I %* re(e%ting *ysel,. Th%t is /st % little rein,or&e*ent(sy&hology

    E'tensions were o+served %s so*ething ?E'tr%@ %nd given % n%*e. They did not ,it intothe &%stings o, reg/l%r w%ve str/&t/res so they h%d to +e e'%*ined %nd identi,ied %nd&l%ssi,ied.

    This w%s done within the ,r%*ewor0 o, the +%si& l%yo/t o, the w%ves %s they ,or* in thel%+or%tory. In other words1 the e'tension did not ,it % theoreti&%l Elliott 7%ve %s #r.Elliott ?tho/ght@ th%t they ?sho/ld@ ,or*.

    The w%ves %&t/%lly ,or* so*ewh%t di,,erently th%n he tho/ght they do. This o&&/rs in&ert%in w%ves %nd so it w%s not seen %s % r/le +/t *ore o, %n e'&e(tion. He then

    &l%ssi,ied this e'&e(tion %nd %&&e(ted its irreg/l%rity.

    One *ore iss/e reg%rding things whi&h were o+served %nd &%t%log/ed sho/ld +est%ted. #r. Elliott h%s %lre%dy o+served the (heno*enon whi&h will +e&o*e the newr/le ,or /s. He +%si&%lly s(lit it /( %nd &%tegoried it %s se(%r%te things with di,,erentn%*es %nd di,,erent des&ri(tions in di,,erent degrees %nd s%w so*e o, it %s so*ethingwhi&h did not e'ist %t %ll %s (%rt o, w%ves. However the w%ves h%ve %lw%ys h%d it %nd#r. Elliott h%s seen it.

    - Rule is $nly - Rule f t&s - Rule

    !et *e +e &le%r th%t when I re,er to % new r/le th%t I %* t%l0ing %+o/t % r/le in everysense o, wh%t th%t *e%ns in Elliott 7%ve. A r/le */st %((ly to every w%ve %nd */st%lw%ys hold tr/e.

    So when it is s%id th%t &ert%in w%ves develo( di,,erently it *%y still +e % r/le /st %s it is% r/le th%t &orre&tive w%ves %re Threes %nd *otives %re ives.

    7hen re,erring to ?Every 7%ve@ %s % re=/ire*ent ,or r/les this sho/ld %&t/%lly +e t%0en

    %s *e%ning every )y&le. A )y&le in&l/des the set o, L *otives %nd < &orre&tives.

    There,ore o/r new r/le1 /st %s %ny r/le1 sho/ld +e %((li&%+le to e%&h %nd every &y&le.It IS % r/le in th%t very stri&t %((li&%tion %nd will %lw%ys +e o+served. This %lso *e%nsth%t this is "OT in the &%tegory o, % g/ideline or w%ve &h%r%&teristi&. Its % r/le.

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    Rule tatement

    The St%te*ent o, the "ew Elliott 7%ve R/le is %s ,ollows-

    n Every 6th !ave and in Every C !ave7 the 8th !ave !33 have a " !ave

    which will set New Trend 2rice Territory. 

     Altho/gh this needs no di,,erent l%+eling1 this sho/ld +e given % ter* %nd so I h%ve&%lled it % ?Retrending B@ or *ore si*(ly %n ?RTB@ 7%ve. The r/le there,ore st%tes th%tin those s(e&i,i& w%ves there will A!7AYS +e % th 7%ve with %n RTB.

    $revio/sly o, &o/rse1 this w%s o+served +y #r. Elliott %s %lre%dy st%ted. However it w%snever seen %s so*ething whi&h %lw%ys o&&/rs +e&%/se o, the invention o, thee'tension whi&h is /st the e,,e&t o, lower degree RTBs in the intern%ls %nd so theywere not seen %s s/&h.

    7h%t he did %lre%dy d/ly o+serve %nd l%+el %s %n ?Irreg/l%r )orre&tion@ is not in thele%st irreg/l%r in the nor*%l &onnot%tion %nd even in Elliott 7%ve &onnot%tion.

    ro* his +oo0 in the se&tion on )orre&tions :&orre&tion o, % +/ll *otive is shown;-

    )

    7h%t he does not show here is the %&t/%l &orre&t de(i&tion where the ) w%ve will %lsoh%ve %n RTB th whi&h wo/ld li0ely h%ve &%/sed hi* to dr%w the intern%ls di,,erentlyh%d he 0nown this %s % r/le :the still lower degrees wo/ld not show on this de(i&tion;.

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    Th%t (i&t/re is how #r. Elliott viewed so*e &orre&tions. The &o/nt h%s +een &orre&tly*%int%ined in s/&h % w%y th%t it w%s &le%r to hi* the B w%ve sets new (ri&e territory. Itis %lso indeed &orre&t th%t this is only %((li&%+le to ?so*e@ &orre&tions. He h%d other,or*%tions listed %nd di%gr%**ed whi&h %((ly to ?other@ &orre&tions.

    The %re% o, &on,/sion whi&h wo/ld give rise to the invention o, %n e'tension &o*eswhere the lower degree intern%ls in the (revio/s w%ve wo/ld h%ve *%ny inst%n&es o,

    these RTB ths whi&h wo/ld &on,/se the &o/nt %nd loo0 /st li0e %n e'tension +e&%/seth%t is wh%t h%d +een de&ided th%t this e,,e&t w%s.

    E'%*(les with *ore intern%l det%il ,ollow +/t ,irst % +%si& l%yo/t o, wh%t this loo0s li0e-

    See %ll di%gr%*s ,/ll sie here- htt(-newelliottw%ver/le.orgin,oe+oo0di%gr%*s.ht*

    This is % &le%r w%ve ending > either % Lth or ) w%ve. The %re% in the grey elli(se on the(i&t/res inset is wh%t is de(i&ted. The %2+2& o, the th w%ve is highlighted %nd showswhere the (ri&e e'&eeds the end o, w%ve < or ?ReTrending in the B o, w%ve @.

    "ote- A &onvention will +e /sed thro/gho/t to ill/str%te new r/le w%ve &o/nts. The %re%+eing l%+eled h%s %n overview inset. Also only very &le%r ending w%ve %re%s will +e/sed. It is very ,ort/n%te th%t the new r/le tre%t*ent o, w%ve &o/nts o&&/rs only in7%ves L %nd ). This *%0es the inter(ret%tions &le%r sin&e the ending w%ve ,or*%tiongets *%r0ed o/t +y swing (ivots. The res/lt is % sel,2v%lid%ting s&en%rio whi&h wo/ldnot +e the &%se sho/ld we ,irst need to (rove where we were in the &o/nt. Theselo&%tions will +e o+vio/s.

    3

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    %ive (e (ore 1etail 2lease

    The (r%&ti&%l %((li&%tion o, this new r/le will in&l/de ,ro* to intern%l %nd &/rrent %nde'tern%l degrees o, s&%le.

    This is +e&%/se %s % w%ve L ends it will h%ve % th li0e this whi&h will in&l/de % ) li0ethis %nd the ) will h%ve % Lth with % th li0e this %nd so on. The Lth will h%ve % L o, L too.Then it will +r%n&h into % &orre&tion where the ) will h%ve % th li0e this. Underne%th th%tthe Lth %nd ) o, e%&h %nd every ,or*%tion will &ont%in this.

    It is !ESS &o*(le' now +e&%/se there will +e % w%y o, &o/nting th w%ves whi&h is/ni=/e %nd identi,i%+le ,or the w%ves to whi&h it %((lies. This will gre%tly si*(li,y the&o/nting +/t we will &over *ore on th%t l%ter.

    $erh%(s not %ll degrees will +e needed +/t yo/ will +egin to see how this inter%&tion&o*es into (l%y very =/i&0ly. Even tho/gh yo/ will so*eti*es t%0e the short&/ts :yesyo/ will1 I tho/ght we &overed th%t;1 to thoro/ghly des&ri+e % w%ve yo/ will w%nt %ll thedegrees o, s&%le whi&h %re needed.

    Room To %row

    In the origin%l des&ri(tion o, the ,r%&t%l n%t/re o, 7%ve An%lysis Degrees % s&%le seriesw%s develo(ed ,ro* the +otto* /(. Th%t +otto* det%il level w%s %((lied to the ho/rlyd%t% set. 7e now h%ve need to e'(%nd o/r series.

    The origin%l set &ont%ined 6 whi&h went /( ,ro* the ho/rly %nd on to &over &ent/rys&%le %nd %+ove. Glenn "eely1 %n Elliott 7%ve e'(ert1 h%s %dded 3 *ore +elow theorigin%l 6 ,or s*%ller degrees o, s&%le giving /s FF.

    There w%s %lso % devi%tion on the origin%l gr%(hi& sy*+ols whi&h #r. Elliott /sed whi&h+e&%*e (o(/l%ried +/t th%t set does not /se the e'tr% 3 degrees.

    The &onsens/s in these &%*(s ,or %ssigning % Ti*e S(%n A((li&%tion to (%rti&/l%rdegrees see*s to +e to %void /sing one. The *ethods whi&h %re e*(loyed ,or%ssigning ti*e s(%ns ,or %((li&%tion o, % degree v%ry de(ending on where one loo0s.

    $erh%(s one o, the *ethods ,or %voiding dis%gree*ents wo/ld +e to st%nd%rdie onthis with +ro%d r%nges.

     As *entioned there is % need to e'(%nd the series on&e *ore. There,ore the /ni,ying%((ro%&h */st +e to ,in%lly %do(t one o, the two *ost (o(/l%r styles %nd %dd to it in the*ost &o*(lete ,or*%t yet %nd ho(e th%t we &%n %ll /st get %long. It is not % ne&essity+/t we %lso h%ve *%ny l%ng/%ges in the world %nd th%t &ert%inly 0ee(s thingsinteresting1 doesnt itM

    3L

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    New 1egrees $f cale

    It is % di,,i&/lt thing to &hoose +/t there %re % &o/(le re%sons to side with the "eely set%s the %ddition%l degrees %re %dded. 7e &ert%inly do not w%nt % &o*(letely new l%yo/t%s we sho/ld wish to ,/rther this s&ien&e. There */st +e % (oint where di,,eren&es get*elded in %n e,,i&ient w%y i, th%t is to h%((en %ltho/gh %lien%ting so*e is /n%void%+le.

    The ,irst re%son ,or &hoosing the "eely set is there %re 3 lower degrees in /se %lre%dy.

    E=/%lly i*(ort%nt is the ,%&t th%t *ore degrees &%lls ,or the e%sier *ethod to re*e*+er%nd %((ly. The set we will %dd to h%s only 3 n/*er%l gro/(ings1 Ar%+i& %nd Ro*%n. The%ltern%tion +etween the two +e&o*es si*(ler li0e %ltern%ting &olors on % &ol/*n%r (%d.

    To &o*(lete the s&%le series we will need %ddition%l degrees ,or % tot%l o, FL. This willt%0e /s down to the se&onds to *in/tes in ti*e s(%n %((li&%tion.

    There is % set o, Tr%ns(%rent .$"G gr%(hi& ,iles whi&h *%y +e /sed ,or l%+eling th%tin&l/des everything in the set. These *%y +e entered into gr%(hi& editors li0e Sn%git %sSTA#$S ,or =/i&0ly %((lying l%+els to yo/r (i&t/res.

    Yo/ *%y downlo%d the ,ree Gr%(hi&s Set here-

    htt(-newelliottw%ver/le.orgin,ol%+els.ht*

    The t%+le on the ,ollowing (%ge :in&l/ded in the %+ove gr%(hi&s downlo%d; will show the

    w%y th%t these s&%le %dditions will +e /sed in the re*%ining di%gr%*s in this +oo0. Th%t,irst (i&t/re only /sed e'isting degrees so does not ,it % (ro(osed ti*e s(%n /s%ge.

    In %((lying the ti*e s(%n %((li&%tion g/idelines it w%s on&e %g%in not (ossi+le to %greewith */lti(le &%*(s. In the interest o, %rriving %t s(%ns whi&h will +e the *ost %&&/r%te%nd g%in wider %&&e(t%n&e in the ,/t/re so*e *odi,i&%tions were needed. It is ho(edth%t these *odi,i&%tions will indeed h%ve % /ni,ying e,,e&t.

     As the new r/le +egins to resh%(e &o/nting *ethods % new o((ort/nity &o*es tost%nd%rdie l%+eling %nd there,ore enh%n&e %gree*ent %nd &oll%+or%tion %*ong Elliott7%ve Te&hni&i%ns.

    I, yo/ wish to downlo%d /st the degrees t%+le witho/t the gr%(hi& sy*+ols yo/ *%y getth%t here-

    htt(-newelliottw%ver/le.orgin,odegrees.ht*

    See the new degrees t%+le on the ne't (%ge.

    3

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    1egrees Table

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    Now !e Can %et The Full 9iew#oint

    Using th%t e'tr% det%il in l%+eling we &%n now *ove in %nd o/t %t %ny degree witho/tli*it%tions to see the w%y this ,its into the entire Elliott 7%ve %n%lysis.

    Re*e*+er th%t this new r/le is wh%t the w%ves h%ve +een doing %ll %long %nd governsthe entire s(e&tr/* o, ,or*%tion %nd *ove*ent in %ll ending %re%s. There,ore we will+e %+le to wor0 with s(e&i,i&s sin&e this h%ndles the *ove*ents ,or*erly &%llede'tensions %nd %re no longer going to need g/esswor0.

    The ,%&t th%t yo/ %re %+le to si*(ly tr%&0 the st%nd%rd Elliott 7%ve &on&e(t/%l w%ve,or*%tion %nd str/&t/res o, F thro/gh L %nd A thro/gh ) will v%stly si*(li,y &o/nts. It*%y see* str%nge %t ,irst +/t it shows itsel, ,re=/ently in these ending %re%s whi&hhel(s to +e&o*e ,%*ili%r with it =/i&0ly.

    On&e seeing the end o, < when inside % l%rger L th or ) w%ve the thing to &o/nt ne't will+e A r%ther th%n /st . The ne't s&reenshot will show this.

    In other words when inside % l%rger Lth or ) w%ve it is going to +e &o**on to ti&0 theseo,, in the ,ollowing ,%shion-

    F > 3 > < > A > B > ) > F > 3 > < > A > B > ) > F > 3 ... %nd so on % ,ew ti*esde(ending on how */&h det%il yo/ will +e seeing. This /st (ro&eeds /ntil yo/ ,in%llyh%ve ,o/nd the revers%l %t the s*%llest degree Lth o, L where yo/ll then &%(t/re theset o, lower degree ,i,th w%ves whi&h h%ve +een +/ilding ,or the swing (ivot.

    7e will loo0 %t % s&reenshot ,or this o+serv%tion o, the nesting o, degrees whi&h w%s /st des&ri+ed. The e'tr% det%il needed will *%0e the (i&t/re ,%irly &o*(%&t sore*e*+er yo/ *%y view %ll o, these s&reenshots %t their ,/ll sie here-

    htt(-newelliottw%ver/le.orgin,oe+oo0di%gr%*s.ht*

     

    This s&reenshot on the ne't (%ge shows three degrees %nd +y the third one there is %l%&0 o, det%il sin&e the

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    "etter !ave dentification

    The ,ollowing dis&/ssion will show why h%ving 3 Di,,erent Ty(es o, th

     w%ve ,or*%tionswill %id in 7%ve Identi,i&%tion. 7e will /se the inset ,ro* the %+ove s&reenshot.

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    $%rt o, the (roo, o, wh%t w%ve is de(i&ted in the *%r0ed /( w%ve &o/nt %s shown in thegrey elli(se o, the inset overview &o*es ,ro* the &le%r distin&tion in the *ove down,ro* the to( le,t o, the elli(se The re*%ining re=/ired (roo, &o*es ,ro* the ,%&t th%tthere is +oth lower %nd higher (ri&e %re%s th%n the *ove o, whi&h th%t elli(se &overed(ri&e %&tion is % (%rt :yellow highlighted %re%;.

    Th%t *%0es the entire view%+le (ri&e %&tion within the inset % +/llish *ove with %&orre&tion whi&h is highlighted in yellow in the +low2/( o, the inset.

    There,ore the ,in%l %re% o, the &orre&tion whi&h is sh%ded with the grey elli(se */st +eeither % ) o, % Pig%g or the Lth o, wh%t wo/ld h%ve +een ,or*erly 0nown %s %n?Irreg/l%r )orre&tion@. "ow we 0now it %s the L th o, %n RTB th w%ves ).

    Th%t (roves wh%t the w%ve */st +e ,or the (/r(ose o, 0nowing th%t the new r/le w%ve&o/nting %((lies to th%t %re%. This 0nowledge will %id in t%0ing % +/llish (osition %t the&orre&t lo&%tion.

    or 0nowing whi&h (%rti&/l%r w%ve is in the yellow sh%ding1 however1 the in,or*%tion*/st &o*e ,ro* l%rger degrees. This is where the new r/le is o, +ene,it. Sin&e we now

    h%ve th w%ves whi&h &o*e in two *%or v%rieties it will hel( disting/ish +etween the*.

    The th w%ve o, %ny w%ve OTHER th%n L or ) will "EVER set new (ri&e territory in its Bw%ve. So this +e&o*es %n inverse r/le whi&h gives +etter w%ve identi,i&%tion %nyti*ethere *%y +e =/estions %rising ,ro* l%&0 o, det%il in yo/r d%t% set.

    The re%son ,or the distin&tion th%t there %re two *%or v%rieties is th%t the non2RTB th

    h%s two *inor v%rieties. These %re those in whi&h the B w%ve will either *%t&h the (ri&eo, the ,/rthest e'tent o, w%ve < e'%&tly or will not re%&h th%t e'tent +e,ore the ). Eithero, these two *inor v%rieties +eing distin&t ,ro* th%t o, %n RTB th w%ve will still %id inidenti,i&%tion o, the l%rger degrees.

    The new r/le gives %ddition%l +ene,its whi&h we will dis&/ss l%ter.

    f You Can ee; t7 t&s a C;

    There %re two things th%t th w%ves see* to +e d/ty2+o/nd to %&&o*(lish. The ,irst is to,ool everyone %t le%st on&e. The other is to +e % &orre&tion %nd +re%0 the trendline.

    Bringing this tr%it to yo/r %ttention is i*(ort%nt +e&%/se %n RTB th w%ve &%n re%lly*ove %ro/nd. The one tr%it th%t hel(s to noti&e1 es(e&i%lly where there is l%&0 o, det%il1is the w%y th%t yo/ &%n ?SEE@ the ?)@. I do not w%nt to en&o/r%ge short&/ts +/t it is veryhel(,/l to +e %w%re o, th%t st%ndo/t &h%r%&teristi&. Try to SEE it in the ne't e'%*(le.

    This one %lso h%s three degrees +/t %t L #in/te none o, the det%il is hidden %nd +etterintern%l det%il &%n +e o+served. Ag%in1 noti&e how the ) o, the th is so visi+le in e%&hdegree.

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    #ore degrees &o/ld &ert%inly +e l%+eled +/t only in e'(loded view. However yo/ &%nstill see this new r/le in %&tion in the lesser degree %re%s o, th%t (i&t/re. One *%y &%rrythis down to the ,inest degree %v%il%+le or desir%+le1 whi&hever &o*es ,irst in *eetingyo/r new go%l o, %&hieving de,initive w%ve &o/nts.

    It is i*(ort%nt to note th%t the B w%ve o, the RTB th w%ve will &ont%in % ) w%ve whi&hneeds to +e &o/nted the s%*e w%y %nd so will %lso h%ve % ) th%t ?sti&0s o/t@ so*e too.

    In this ne't shot we will o+serve L l%+eled degrees with %ddition%l degrees visi+le +/tnot l%+eled. )olor highlights on the *otives1 % di,,erent &olor ,or e%&h degree1 h%ve+een %dded to the l%+els to hel( vis/%lie how the RTB th w%ves nest /ntil ,in%lly the&%s&%de &o*(letes %t the s*%llest Lth o, L %nd the swing (ivot is re%&hed.

     Ag%in the 0nown (osition within the &o/nt on the l%rger degree will h%ve yo/r *ethodswit&h to %n A i**edi%tely %,ter

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    "ow yo/ h%ve % ,ew new things to re*e*+er to do yo/r &o/nts. However in the ne't&h%(ter yo/ will see th%t yo/ h%ve much more to forget

    Remember You 0ave - Forum -vailable

    For 1iscussions $f The New Rule

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    Cha#ter Five

     A Simple Elegance Revealed 

    The %reat "enefit $f 3ess s (ore

    It is %lw%ys wonder,/l when yo/ &%n 0ee( things si*(le. In o+serving *%r0ets yo/ */stt%0e one o, two %((ro%&hes. They %re either % &o*(letely r%ndo* *ess or they %ree'tre*ely &o*(le' entities with (%tterns %nd n/*eri&%l rel%tionshi(s within whi&h h%ve% ,or* o, govern%n&e over their (%ths.

    The l%tter is the re%lity %nd so the street v%l/e goes /( tre*endo/sly on %nything whi&h&%n si*(li,y the t%s0 o, %n%lysis. Th%t is wh%t Elliott 7%ve does.

    7hile si*(li&ity is %lw%ys going to +e % rel%tive ter* whi&h v%ries with the &o*(le'ity o,the %((li&%tion there is nor*%lly % +ene,it to h%ving ,ewer *oving (%rts i, th%t %lso*eets the *%in o+e&tives. 7h%t i, Elliott 7%ve &o/ld +e given th%t *%0eoverM

     A&t/%lly it never needed one +/t so*e o, the &o*(le'ity whi&h we now 0now %s (%rts o,w%ve %n%lysis w%s %dded on /nne&ess%rily. Si*il%r &o*(le'ity &%*e to %/to*otiveengines with e*ission &ontrol syste*s %nd they were never =/ite the s%*e.

    7e %re %+o/t to go /nder the hood %nd stri( down this engine to get to the re%l (ower(l%nt. E'tr% (%rts re*ov%l is % =/i&0 (ro&ess tho/gh i, yo/ %re nost%lgi& yo/ *%y w%ntto t/rn yo/r he%d ,or % *in/te.

    The 3ist $f #are 2arts

    O0. The o+ is done. Soon we will ,ire it /( %nd listen to her (/rr. irst lets loo0 over %t

    the +en&h %nd see wh%t we re*oved.

    Yo/ h%ve %lre%dy seen the E'tensions. Th%t w%s wh%t re%lly weighted this thing down.The e'tr% weight &%/sed so*e *odi,i&%tions to +e %dded +/t those ended /( &%/sing %s/+st%nti%l dr%g.

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    !i*it%tions on w%ve tr%vel w%s not &onsistent +/t w%s &h%nged over ti*e in Elliott7%ve. This re,le&ts the de%ling with /ne'(e&ted res/lts %nd the develo(ing n%t/re o,the syste*s r/les witho/t s/,,i&ient det%il.

    leek -nd treamlined

     Allowing the w%ves to develo( %s they will is not %nything new. Yo/ &o/ldnt sto( the* i,yo/ w%nted to. The (/rring o, th%t engine is % wonder,/l so/nd. "o *%tter where itt%0es yo/ the o((ort/nities will not +e di*inished1 only &le%rly de,ined +y re%l &o/nts.

    C/st %s there were only two w%ys to loo0 %t *%r0ets there %re only two w%ys to tre%t thenew in,or*%tion %+o/t wh%t is %&t/%lly h%((ening in w%ve ,or*%tion. )ert%inly oneo(tion is to &ontin/e with the old *ethods.

    7hether yo/ %re doing yo/r own &o/nts or /sing %n %dvisory servi&e the new *ethod isthe one whi&h will h%ve de,initive w%ve &o/nts. The servi&es will +e in&re%sing their

    %dded v%l/e %nd +e *ore v%l/%+le th%n they h%ve ever +een +e,ore.

    Des(ite the in,inite v%riety every w%ve &%n %lw%ys +e &o/nted in the s%*e w%y. They*%y go where they will +/t yo/ will now +e %+le to tr%&0 their (rogress.

    The %+ove (i&t/re o, theoreti&%l w%ves shows th%t v%riety +/t the *ethod re*%ins&onst%nt. Det%ils o, intern%ls will +e tr%&0ed in the s%*e w%y to (revent s/r(rises.Those intern%ls will %lso show th%t those two v%ri%tions wo/ld di,,er visi+ly %nd in (ri&e*ove*ent only1 %nd never in %&t/%l intern%l w%ve &o/nt. Th%t is si*(le eleg%n&e.

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    Cha#ter i<

    The Ke To It All 

    - 1ifferent Road

    Do yo/ now h%ve % di,,erent (ers(e&tive %nd % di,,erent view(oint on Elliott 7%ve %ndhow to &o/nt w%vesM I %* s/re yo/ do. It is i*(ossi+le to loo0 %t the* in the s%*e w%y%s +e,ore on&e yo/ see the* in light o, the new r/le.

    "ow yo/ will +egin to tr%vel down % di,,erent ro%d with *e. How is it th%t this o/rneyst%rtedM How did the re&ognition o, the new r/le &o*e %+o/tM It is =/ite re*%r0%+le%&t/%lly +/t it is not %nything li0e yo/ *%y s/((ose.

    The &o/nts were origin%lly done in the s%*e *%nner %s the ,or*er *ethod di&t%tes.The res/lts were the s%*e %s well1 good +/t &o/ld +e +etter. All (r%&titioners h%d +lown&%lls or w%ited in the %ltern%te &o/nt lo++y.

    I did not (enetr%te the (sy&hology o, seeing wh%t yo/ e'(e&t to see %ll on *y own. Thew%y w%s not s/ddenly ill/*in%ted.

    It &%*e in % r%ther str%nge w%y. So str%nge th%t I do not even h%ve to &o/nt w%ves %t %ll%ny*ore. The n/*eri&%l rel%tionshi(s whi&h (ower Elliott 7%ve h%ve other w%ys inwhi&h they show their (ro(erties.

    I do not *e%n to i*(ly th%t I /nderst%nd %ll o, it1 ,%r ,ro* it. I +%si&%lly &h%sed down %n/*eri&%l oddity %s I w%s ,irst le%rning te&hni&%l %n%lysis %nd thro/gh th%t %dvent/redis&overed th%t there is % Key to e%&h 7%ve whi&h the w%ves the*selves gener%te.

    7ithin %+o/t two ye%rs o, dis&overing th%t Key to the 7%ves the "ew R/le w%s&on,ir*ed. I h%ve 0nown %+o/t the new r/le ,or over ,o/r ye%rs %s o, this writing.

    Th%t e'tre*e %&&/r%&y o, the Key %nd 0nowing the tr/e w%y in whi&h w%ves ,or*ed iswh%t %llowed *e to dis&over so*ething entirely new. The Key itsel, is not so*ethingwhi&h I &%n go into det%il %+o/t +e&%/se it is e*(loyed in % (ro(riet%ry *%nner in %&o**er&i%l tr%ding syste* I develo(ed in l%te 355N. Yo/ see it %dvertised here in this+oo01 th%t is o, &o/rse the S/(ertr%desyste*. Along with s(eed &h%nges in trends %ndtrend &h%nge %n%lysis the Key (owers th%t syste* in % /ni=/e w%y whi&h does notre=/ire &o/nting w%ves.

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    'nchanging !ave tructure

    In the s%*e w%y th%t % w%ve ,or*s the s%*e str/&t/res %t %ll degrees o, s&%le +%sedon i+on%&&i rel%tionshi(s it h%s eviden&e o, those rel%tionshi(s whi&h &%n +e o+served%t %ll degrees /sing (ro(riet%ry tools o, the S/(ertr%desyste*. They %re +oth going to+e sel,2si*il%r in %ll %((li&%tions %nd +e /n&h%nging +e&%/se they %re +oth +/ilt /(onthe s%*e thing.

    7here the w%ve %n%lysis re=/ires no te&hni&%l %n%lysis tool1 the S/(ertr%desyste*re=/ires no 0ee(ing tr%&0 o, the &o/nt. 7itho/t %ny (rior o+serv%tions % re%ding &%n +et%0en to indi&%te re%diness ,or % sign%l in /nder two *in/tes. They %re +oth *%n/%lte&hni&%l %n%lysis *ethods o, /n*%t&hed %&&/r%&y.

    They +oth %&t/%lly h%ve the Key %t their he%rt in % w%y. Altho/gh the Key is e'tr%neo/sto w%ve (rints %nd % te&hni&%l %n%lysis te&hni=/e o, its own it does dis(l%y theseinherent rel%tionshi(s in yet %nother w%y whi&h shows o,, the e'tre*e %&&/r%&y o,*%r0ets. :On this (oint yo/ will si*(ly h%ve to t%0e *y word;. Th%t %&&/r%&y dis(l%yedis +/ilt into *%r0ets %nd it is yet %nother w%y Si*(le Eleg%n&e is Reve%led.

    So the 0ey to it %ll is not the ?Key@. The 0ey to it %ll is this *%rvel o, n/*eri&%l (re&ision+/ilt into *%r0ets. Its /n&h%nging n%t/re *%0es it % tr/e 7onder O, The 7orld o, whi&hthere is %n in,inite n/*+er %nd v%riety.

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    -##endi<

    Refe!ences

    )  : The 7%ve $rin&i(le1 R.". Elliott F6

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    7%ve : i ; is wh%t is re,erred to %s % *otive w%ve %nd : ii ; is % &orre&tive w%ve. #otivew%ves &ont%in ,ive intern%l w%ves. )orre&tive w%ves &ont%in three intern%l w%ves.

    7%ves %re identi,ied %s *otive whi&h *ove with the *%or trend. 7%ves %re identi,ied%s &orre&tive whi&h *ove %g%inst the *%or trend.

    #otive w%ves-

    F1 B > ) %ndw%ve < :*ove*ent 3 to 3 > < > > L.

    In the ,ollowing (i&t/re there is % de(i&tion o, the new r/le.

    The Lth %nd the ) w%ve show the Retrending o, the B w%ve inside their res(e&tive th

    w%ves. 7%ve det%il is hidden in the 7%ves : i ; %nd : ii ; %nd .F %nd .3 %s is o,ten the&%se /ntil ,/rther e'(lor%tion o, lower degree intern%ls. 7%ve L o, : i ; shows twodegrees o, RTB th w%ves %nd w%ve ) o, : ii ; shows one degree o, %n RTB th w%ve.

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    The "ack Fla#

     A$out The Autho! 

    !atching !aves Crash $nto The hore

    To* Hennessy is not the ,irst (erson to h%ve things(/t into (ers(e&tive +y w%t&hing o&e%n w%ves&r%sh onto the shore.

    It h%s +een % tre*endo/s delight to t%0e th%t s%*e0ind o, (ers(e&tive %nd %((ly it w%y down %t theother end o, the s(e&tr/*.

    7%t&hing w%ves hit the 7%ve Key on % ti&0 &h%rt%nd &o*(lete % w%ve in < ti&0s d/ring %n O#)interest r%te %nno/n&e*ent while in the *iddle o, %


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