Dow Jones Elliott Wave & Gann Analysis (24/01/2011)

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This is my interpretation using Technical Analysis and Elliott Wave Theory to look at financial markets. Elliott wave is my preferred tool when looking at the stock market, I believe that it can work to reflect the "psychology" of the market quite accurately.


This video should NOT be taken as investment or trading advice.

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• Robert
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• 500
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[marque1999]

Max nice to see you back! Qns: is the trend line of Wave 4 connect to internal Wave 4 and EWT technique? This trend line has been broken, however, it could be a fake out to shake our the weak hands.

I reckon the trend line drawn from Wave 2 to Wave 4 is more significant. We got to watch the development for the next 2 weeks.If DJIA breaks below 11655-117051, There's a good chance Wave 5 is over and we will be in a downtrend....

[Andronichuk]

@marque1999 Yes the trend line from wave 2 to 4 is of course more signifcant. I persoanlly think it is more likely to be a tripple zigzag to form an internal wave B of (B) (this was my view months ago also, but it has gone higher than I expect, perhaps making a running flat rather the zigzag I was watching out for).

Today's action takes us back up towards my Gann target of 12130! If we see a major peak in this area... I will be diving head first into Gann's books haha :)

[mansson111]

Looks like it is breaking through and going beyond 12130.

[Bharatwaj89]

a down trend till 8728 can be expected as it is the .618% Retracement of the Entire Bull run from 6500 levels......

Then it can take Wave 3 Upside from 8728 to all time highs.....

[marque1999]

@Andronichuk i read abit on Gann, not too sure on the maths though. How did you get the figure 12130?

[Catandthespoon]

Thank you max, this is very interesting. I have been anticipating a correction for a while tbh and am surprised to see us over 12k. All the news is positive at the moment, which usually indicates a stock market dip. I will watch with interest if your 12130 prediction comes true. Cheers.

[marque1999]

Ermmm...of course if the Wave 1,2,3,4 & 5 from last july is a corrective Wave a.b & c...etc instead that will be another story...and more complicated.

[marque1999]

However, if the trend line is not broken, Wave 5 will be extented. The most likely target for Wave 5 are 1)61.8% of Wave 1(Failed), 2)100% of Wave1(good chance), 3)161.8% of wave 1 (possible, market could peak in March) and 161.8% of the gross price length between the beginning of Wave 1 to the end of Wave 3(abit far-fetch).

I favour option 2 to 3. It will bring dow to {[(-9626.98+10766.04)*161.8%]}­+161.8%--12069.63(short term peak)-- that is if it has not already peak.

[MyREDORANGE]

PLEASE KEEP IT UP GOOD JOB