Breakthrough Strategies for Predicting Any Market: Charting Elliott Wave, Lucas, Fibonacci, Gann, and Time for Profit, 2nd Edition

CHAPTER 6

Volume Studies and Moving Averages

I believe the most useful aspect of the time factor is that anyone can use it. While it is Fibonacci or Lucas based, technicians from other disciplines can apply it just like anyone else. The rest of the technical analysis community looks at Elliott as a subjective methodology. We’ve proven within these pages they are indeed correct. We’ve also shown you a hundred different ways how to eliminate much of the subjectivity of Elliott.

However, no matter how much you eliminate the subjectivity of Elliott, there is an element of technicians who either don’t understand or don’t want to understand anything concerning the waves. I can’t blame them as it takes years to learn Elliott properly. One of the goals of the first edition was to make you exponentially better at your own method in the shortest time span possible.

That being said, there is a large contingent of technicians and traders who follow the William O’Neil method of technical analysis. I consider O’Neil to be one of the great innovators and technicians of the twentieth century. I cut my own teeth in this industry on the Investors Business Daily. He has taken a lot of people who knew nothing about the stock market and taught them a methodology that works. In this chapter we are not going to pursue his relative strength rankings of stocks or industries. It does not really apply to what we are doing here. If you want to know which stocks or industries are outperforming the market, ...