Glenn Nili Rejects The Traditional Analysis of Elliott

Nili Glenn (Glenn Neely) cross swords with traditional Elliott wave theoreticians and has developed its own approach to market trading, which he called the theory NEoWave (NEoWave. Theory). Nili first confronted with the Elliott wave theory in the early 80's, when he worked in the oil industry. At the time, Nili interested in stock market, and read many books on this subject, but that, in his words, "I am not particularly moved> and he began to study commodity markets. His first real experience of commercial trading was related to the trading system. "I paid several thousand dollars for this magical grail - a trading system. My first lesson is that how much money you spent on any system, it does not guarantee success," - said Nili. He continued to self-education. "Over the years I learned different things. I realized that it is actually much harder than I initially thought," - says Nili. However, he said, "all in a clear picture of when I read a brief description of Elliott Wave>.

Traditional Elliott wave theory, according to the book by John J. Murphy "Technical analysis of futures markets", states that markets go up or down in five waves: three up (or down) with two intermediate correction.

Nili immediately taken by the Elliott wave: "I started to read everything that is covered by the hand, but realized that there are still many nedoskazannogo. Describing his first disappointment of traditional theory of Elliott, Nili said: "There are too many ways to interpret it. It is biased. It is unscientific. I am not satisfied of its flexibility. There is a big part of my career was in building the technology to make it more objective . My main task for nearly all the time, it was improved forms of technical analysis, which would have been logical, systematic and not dependent on the interpretations. "

"Waves Elliott mostly based on the Fibonacci sequence, and price patterns, rather, a visual representation of price patterns. NEoWave adds to that a logical process with the elements of a vector of Physics", - explains Nili. To make the theory NEoWave, invented Nili, work properly, you need to choose the market that match certain criteria. " First, you want to market the goods, without a complete cycle of consumption, ie, the eternal good. Corn, for example, does not fit: she grew up, ate it and forgot. " Other factors, like Nili explains, is that "the present value is based on the past, time is not automatically a negative impact on cost, and it concerns thousands of products and prices available." In addition, Nili finds that if the wave analysis should be accurate, it is necessary to use data on cash. " Many traders and analysts use the data on futures prices in its analysis by the method of Elliott Wave, "but a large part of the confusion relating to the Elliott wave, caused by the fact that the data are not used," said Nili.

With regard to vremennh framework for trading, the Nili there are no strict rules: "The time frame within which I plan to deal represents the most clear for the interpretation of the range. Let the market dictate the time frame. I do not want to deal with the calculation of waves when they in fact not observed. "

The key to successful trading is a "need to control their emotions." Nili said: "It took ten years to learn to control emotions is acceptable. Such control can be achieved only with a specific understanding of the behavior of markets and knowledge of how you can take risks."

From the journal "BullBear"
Publishing House "ANALYSIS"