The supremacy of Elliottwave and Gann methods over basic technical tools is unbelievable..
Elliott's theory is somewhat based on the Dow theory in that stock prices move in waves. Because of the "fractal" nature of markets, however, Elliott was able to break down and analyze them in much greater detail. Fractals are mathematical structures, which on an ever-smaller scale infinitely repeat themselves. Elliott discovered stock-trading patterns were structured in the same way.
While the Gann method famous for it's accuracy and time predictions..Gann theory is the only theory which has the time tools included....basic technicals is just like the small part of big picture of market.it can not identify the exact time factors...other problem is it's accuracy..as it is based on current picture only and ignores the big picture.Nature of market always reaction of big time frame based on macro economics factors..both Elliott and Gann method's base is economics cycles, so more effective.
On accuracy front one can get exact exit levels using both methods..as for example both methods exit points are 6350 in 2011 November...and both suggested big correction of more than 1000 points for at least 6 months time minimum correction time...what happened everyone knows nifty made 6338 high and correction of big time frame start..hardly 12 points shorter than their targets..this kind of big time frame predictions is almost impossible with conventional basic tools.And if you don't knows big picture it is impossible to trade in small time frame also with high success ratio..which is required to make money in this market.
Very few people knows this theories..mostly highly qualified managers of fund houses.They are mostly M.B.A's and C.A s of IIM ,OXFORD and CAMBRIDGE etc big Universities,,, this FII and DII managers are well equipped with this theories..because they got special training of this theories so that they can stay ahead of common people...as basic tools popularity is increasing day by day among common small city level traders too.The trading levels of this advanced theories is different than prevailing popular technicals ...and trading activities of managers totally based on this theory's soft wares, so this is the main reason of common technicals traders stop loss level triggers ...because of the totally different levels traded by this big heads.
conclusion----we should learn this theories,,
1.To find accurate exit points...which is most important elements of our trading because everyone knows tentative entry points but very few has exact exit points.
2.To find exact time analysis and probable turning time point we need thorough knowledge of this theories.Because without time element difficult to judge this market.
3.To keep our trading activities in line with big fund houses managers, to avoid our unnecessary stop losses.Obviously if we remain our trading decision in line with their decision we will win definitely as market is mostly well controlled by their trading and investments activities.
Elliott's theory is somewhat based on the Dow theory in that stock prices move in waves. Because of the "fractal" nature of markets, however, Elliott was able to break down and analyze them in much greater detail. Fractals are mathematical structures, which on an ever-smaller scale infinitely repeat themselves. Elliott discovered stock-trading patterns were structured in the same way.
While the Gann method famous for it's accuracy and time predictions..Gann theory is the only theory which has the time tools included....basic technicals is just like the small part of big picture of market.it can not identify the exact time factors...other problem is it's accuracy..as it is based on current picture only and ignores the big picture.Nature of market always reaction of big time frame based on macro economics factors..both Elliott and Gann method's base is economics cycles, so more effective.
On accuracy front one can get exact exit levels using both methods..as for example both methods exit points are 6350 in 2011 November...and both suggested big correction of more than 1000 points for at least 6 months time minimum correction time...what happened everyone knows nifty made 6338 high and correction of big time frame start..hardly 12 points shorter than their targets..this kind of big time frame predictions is almost impossible with conventional basic tools.And if you don't knows big picture it is impossible to trade in small time frame also with high success ratio..which is required to make money in this market.
Very few people knows this theories..mostly highly qualified managers of fund houses.They are mostly M.B.A's and C.A s of IIM ,OXFORD and CAMBRIDGE etc big Universities,,, this FII and DII managers are well equipped with this theories..because they got special training of this theories so that they can stay ahead of common people...as basic tools popularity is increasing day by day among common small city level traders too.The trading levels of this advanced theories is different than prevailing popular technicals ...and trading activities of managers totally based on this theory's soft wares, so this is the main reason of common technicals traders stop loss level triggers ...because of the totally different levels traded by this big heads.
conclusion----we should learn this theories,,
1.To find accurate exit points...which is most important elements of our trading because everyone knows tentative entry points but very few has exact exit points.
2.To find exact time analysis and probable turning time point we need thorough knowledge of this theories.Because without time element difficult to judge this market.
3.To keep our trading activities in line with big fund houses managers, to avoid our unnecessary stop losses.Obviously if we remain our trading decision in line with their decision we will win definitely as market is mostly well controlled by their trading and investments activities.
