Question of the Week: 2/24/2010
If you had software to apply "Position Indicators" according to Mastering Elliott Wave, it would remove drudgery, leaving logical analysis to the individual.
Generally speaking, your statement is correct. The problem, of course, is programming a computer to do it accurately. I address this issue in a prior Question of the Week at this link...
What many do not realize is that Chapters 2, 3 & 4 within Mastering Elliott Wave (MEW) were designed to get the beginner "up to speed" with a standardized, logical process of wave analysis. A process that has come to be known as NEoWave. The early chapters of MEW were meant to address the extreme inertia most experience early on when trying to apply wave analysis to a new chart.
The goal of Chapter 2 was to standardize the data collection and plotting process. The goal of Chapter 3 was to make it possible for beginners to accurately detect the internal structure of monowaves. The goal of Chapter 4 was to take that foundational information so one could construct an appropriate sequencing of wave segments. Chapter 5 then, of course, helps one put those sequences together into acceptable wave patterns.
Once one understands the logical, step-by-step concepts (the Rules of Observation, Retracement Rules, Pre-Constructive Rules of Logic, Position Indicators, Pattern Isolation procedures, Monowave Groups and the Rule of Similarity and Balance) discussed throughout Chapters 3 & 4, that incredibly detailed process is no longer necessary. Most books on Elliott Wave begin with the concepts I present in Chapter 5, which causes a great deal of frustration for early practitioners because they can't figure out how to get from point A to point B (so to speak). But, with enough time and effort, most will finally "get it" and experience a "leap" in their thinking where structure, pattern recognition and overall behavior becomes most important. Chapters 2, 3 & 4 were simply created to get beginners past that initial intellectual "hump" in the process.
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