One Of My Most Valuable Tools In Analyzing Trends: Elliott Waves

Want to know when a downtrend may be coming closer to its end? Or how about when an uptrend may be nearing its end?

Check out the recent video I just filmed where I talk about ways to quantify the stages of each uptrend and downtrend and the sentiment associated with each of those stages.

This is just one piece of my triangular, three-pronged approach to investing. The first and most important facet to measure is the fundamental strength of a company and its valuation. Secondly, we can look to the charts also known as technical analysis. And thirdly, we can assess the sentiment of the masses.

Well, what I like about the tool that I'm sharing with you today is that it assesses the latter two and even helps us to know when a stock or index could potentially be trading at a fundamental value or when that same asset may be overpriced.

So check out today's video. I believe you're going to enjoy it.

God bless!

Comments (26)
No. 1-24
Aaron Crosby
Aaron Crosby

awesome video Sean. I'm curious if you have a way to post a screen shot in the comments detailing the whole 5 wave Elliot wave that ended in 07 which brought us the crash and down trend we're all most familiar with in 08?

Sean Hyman
Sean Hyman

I'm not sure what you mean. Can you further explain?

Sean Hyman
Sean Hyman

In 2007, there were five waves up that came before it. And in the 5th wave, there's also five mini-waves within that one wave. Once that wave is coming to an end, the hype in the market is near its peak. The optimism could not be higher. And everyone who's going to buy has already bought. And the price-to-earnings ratios are through the roof. Those are characteristics of the market in wave 5's. Maybe that's what you were asking.

Aaron Crosby
Aaron Crosby

i meant show a chart covering say 2000-2008 and the wave counts marked out over that period of time. just like we see in the chart you showed us from 07-now. the dip back in 07-08 and then the slow but steady growth from 10-now...

Sean Hyman
Sean Hyman

Yes, you just go further back in time. Here's a chart.

Aaron Crosby
Aaron Crosby

yup, that's exactly what i was talking about! now people can easily see the repeating trend over the past 15 years!

Sean Hyman
Sean Hyman

Yes, it's a pattern that repeats itself. Five waves up overall followed by three waves down overall.

FusionDude
FusionDude

awesome tutorial!

Sean Hyman
Sean Hyman

Thank you. I'm glad you enjoyed that. Thanks for letting me know.

WGoodwin
WGoodwin

That really is a great video. Do you know if there is a way to make it a 'sticky' post so that all new people would see it at the top? I think it is important for people following your advice to understand all of this.

Sean Hyman
Sean Hyman

Thank you. I appreciate that. It's pinned, which put in the Top Stories that scroll at the top of the home page. Plus, I shared it on Facebook and Twitter.

Aaron Crosby
Aaron Crosby

you know... might be a good idea to have a investing101 section for stuff like this...

Sean Hyman
Sean Hyman

Yes, that's my intent. To take the pinned videos and put them into the subscriber area in a 101 type of section.

jlchennault
jlchennault

I have taken notes over the last couple years and they are disjointed. These type videos put it together. Absolutely necessary to watch more than once and periodically. More comforting for me and most folks willing to put in the time to be able to follow along in your educational conversation. That is exactly what will keep people logical and grounded. Also, depending on what is going on in your life or environment when you watch something like this, makes a difference in ones focus. As the saying goes the devil is in the details and that requires repetition. Your thankful student Joy

Sean Hyman
Sean Hyman

Absolutely. I totally agree. I'm so glad you enjoyed that, Joy! Thanks for posting.

JaneBerlowe
JaneBerlowe

Another great video Sean! Full of incredibly useful information! Thank you.

Sean Hyman
Sean Hyman

Thanks, Jane. I appreciate you taking the time to watch it and comment.

Jxbrislan
Jxbrislan

Can't say enough about how much we appreciate being able to listen and learn from your wisdom again. So much common sense and so practical, best title ever. We learned so much from you with your newsletters and are so happy you started over again. Thank you so much for all that you do.

Sean Hyman
Sean Hyman

Thank you. I sure do appreciate that a lot. This is the first time I was actually allowed by a publisher to name my own newsletter. So that was awesome!

sljifly49
sljifly49

I just paid for the premium part of your site and I am really happy to be back! I dumped UWR on the first day I had notification that you were gone!

shmcc2000
shmcc2000

Editor

Thank you for joining me here and it's great to have you as a subscriber. Awesome!

philip_from_cal
philip_from_cal

When I first saw this video Sean, I didn't realize that there were 3 waves a, b & c within waves 2 & 4. I just picked that up after watching the video a 2nd time. It definitely pays to watch the video multiple times!

Sean Hyman
Sean Hyman

Editor

That's the most common pattern in waves 2 and 4. But there can also be a sideways a-b-c-d-e move that can form a triangle or rectangle sideways pattern, etc. I'm glad you're enjoying these videos. Awesome!

Sean Hyman
Sean Hyman

Editor

Here are examples of triangular a-b-c-d-e formations from Robert Balan's book The Elliott Wave Principle.

Larry
Larry

Sean, can you give an estimate of how many professional brokers and Wall Street types value and utilize Elliot Wave Theory? Just curious. Thanks a lot. I have learned a lot from you over recent years. I would put this video near the top of your educational offerings.

Sean Hyman
Sean Hyman

Editor

I don’t know other than to say it’s likely a large number. Anyone with a CMT designation would be exposed to it at least and those in the MTA (Market Technicians Association) would be exposed to it. It’s really more the study of the phases of mass psychology as it concerns the financial markets, more than anything. That’s why it works.



shmcc2000
shmcc2000
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