The New Science of Technical Analysis

Chapter 4

Wave Analysis

Shortly after being introduced to the Elliott wave concept in the early 1970s, I sought out experts to educate me regarding this approach. Unfortunately, the only practitioners of whom I was aware were Joe Collins from St. Louis and Jack Frost from Canada. I contacted both, and they, in turn, referred me to a number of investors who had experimented with Elliott wave analysis and with Fibonacci numbers. Two individuals, both from Florida and both physicians, were recommended to me as possible resources. The experience and information they provided—more precisely, the lack thereof—were instrumental in the creation of my own approach to wave analysis.

By recounting two unrelated incidents, I might better communicate the effort in futility that I expended. I invited one doctor to Wisconsin to deliver to my business associates a speech about his interpretation of wave research. When I had arrived at the airport gate to greet him and all the passengers had deplaned and he was nowhere to be found, I called his office to determine whether he had missed the plane. His nurse/receptionist reassured me that he had made the plane; she had seen him depart. She said he would find me. I continued to wait, and eventually an individual approached and asked if I was “Tom” and I said yes. He said he recognized me because I had been walking in Fibonacci angles. I realized that I had my hands full and that my expectations were for the worst. He did not let me down—the meeting ...