Mastering Elliott Wave Version 2.0 Copyright © 1990 by Glenn Neely This is a revised edition of a work originally published under the tile of “Elliott Waves In Motion” Copyright © 1988 by Glenn Neely All rights reserved {including the right of reproduction in whole or in part in any form or by any means without permission from the publisher. For information contact: Windsor Books P.O. Box 280 Brightwaters, N.Y, 11718 Manufactured in the United States of America ISBN 0-930233-44-1 For information on related products and services, write or call: Elliott Wave Institute 1278 Glenneyre - Suite 283 Laguna Beach, California (CA) 92651 Office: (714) 497-0949 © TeleFax: (714) 497-0983 Disclaimer “Mastering Elliot Wave" is an independently produced productof theElliott Wave Institute. Every effortasbeen made to supply complete and accurate information. However, neither the author, the Elliott Wave Institute, nor anyone else associated with this publication shall be liable for any liability, loss,or damage directly o indirectly caused or alleged wo be caused by this book, All ideas and material presented are entirely those of the author and do. ‘not necessarily reflect those of the publisher or bookseller. ‘Warning: allcommodity trades, patterns, charts, systems, etc.,discssed in this book are fo illustrative purposes only andare not to be construed as specific advisory recommendations. Nome:hod of trading or investing is foolproof or without difficulty. Therefore, always proceed with caution before investing and realize that past performance of a trading system or technique is no gusrantee of future investment success, Acknowledgments This book has been nearly a decade in the making. During that period of time, a multitude of friends, clients and associates have provided me with support, helped me solidify my ideas regarding the Wave ‘Theory and have indirectly assisted me in creating the knowledge which is presented in "Mastering Elliott Wave." Some listed may not have realized cr, through time, may have forgotten their impact on my work. Here, I would like to remember them for their contributions. First, the current and past “Elliott Wave Telephone Course” clients too numerous to all be mentioned, but who were instrumental in the culmination of this treatise. A few should be singled out due to their support beyond normal expectations: John Lux (my very first Course client -- you probably thought 1 forgot about you); Jim Cottone, who gave me the encouragement and assistance to write my first book (no longer available); George Limberg (a great student); John Porter (thanks for all the help during the early newsletter days); Jo Roberts (for all the valuable statistics she provided); Percy Stokes (for his generous support); Jay Walman (thanks for letting me on your show and for being a friend); Robert Blum (a tmue believer); Bob Stark (who has been my friend longer than I can remember, and has always been there when I needed him); Mark Brantley (one of the most devoted and helpful srudents I have ever worked with); Mike Walker (who was not only a client, but a close, personal friend from my home town, Lafayette, La. and who I will never forget - thanks for all the free computer time, charts and support); ‘Walter Koval (who, for personal reasons, gives me the greatest sense of accomplishment for having taught); Donald Anderson (who currently holds the record for the highest number of retakes of my ‘Telephone course (six-times}) and finally and especially Jack Sumich (much more than a course client, his belief and support have been incalculable). Next, the close associates I would like to thank are: David Reif (who provided me with some of the most valuable knowledge I have ever learned about market behavior); Gerald Friedman (it has been a pleasure working with you); Jeannine Henry (hope our relationship cont:nues for along time); Jim Barth (the best broker I have ever known); Jeff Bower of Financial News Network for allowing me to be on his program and for being the first one to establish my "Guru" status; Richard Mogey of the "Foundation for the Study of Cycles” for maintaining the integrity of that organization and for allowing me to be one of their occasional guest speakers; Larry Jacobs forinviting me to participate in his annual Conferences, Irwin Mintz for his interestin expanding the Institute's horizons; Phyllis Kahn (of Gann World) for being such a caring and generous friend and a truc lady; Perrin Gower for his promotional “plugs,” ardent letter writing and stimulating conversation; Robert Debnam, my best contact with Europe; Walter Murphy (Merrill Lynch's resident Elliott Wave analyst); Michael Jachtschitz (for his valuable assistance and, effort above and beyond the call of duty); Evans Design Associates for creating the powerful graphics on the froat cover and finally, Steve Schmidt of Windsor Books for his interest in publishing "Mastering Elliott Wave" and for letting me do it my way. At this point I would like to thank a special group of friends who were invaluable in finalizing the infamous" rewrite of Chapter 3 (which took eight months), I call them my "beta" testers: Gary Long (along-time devotee of the Elliott Wave Institute, his ideas for Chapter 3 were pivotal to its design), John Kozma (the most enthusiastic tester of Chapter 3 who had some great ideas of his own), Richard Schmoeller (thanks for all the time you spent error checking my rough drafts), Join Lomas (thanks for your ideas), Bill Wilson (the most energetic Telephone Course client I have ever taught, thanks for your input) and to Bill Abrams (that towering icon of the east coast who benevolently halds the "Big Apple" in the palm of his hand).‘This next person has been such a believer and promoter of my approach to Elliott Wave analysis you would think he ran a P.R. firm and was charging me for the exposure. He hasdone so much to help me over the years and has never asked for anything in return (but my friendship) that I feel it only appropriate todevote an entire paragraph to giving himalong over-due heart-felt “thank you.” This wonderful fella's nameis Tim West. Thanks, Tim, for your assistance at my talks in New York City and Chicago in 1989, thanks for proof-reading so many of my manuscripts over the last three years and for giving me your opinions on promotional literature and thanks forall your terrific ideas regarding Chapter 3. Tim West is everything you could expect froma friend and more, Even though we live on opposite coasts and I virtually never sce him in person, I feel Tim possesses all the qualities most people could only hope to have. Tim, youra great friend (1 hope this makes up for any occasion in the pas: [and future] when | have not remembered to thank you for your help). Furthermore, the following personal friends who havenever stopped believingin me: Jeannie Bishop (who has meant more to me than she will ever know); all the Aucoins (where can I begin-- Mrs. Aucoin - you're an inspiration tous all, Carla - Ill neverforget you, youare the best friend Ihave everhad, Kevin ~ the most creative person I know, Kim and Doug, Keith and Mr. Aucoin); Eric Hall (without whom this book could not have been done); Billy Leblanc - thanks for being a friend; Claude - a terrific and long- term friend, Kip-thanks for helping me get started; Travis, Chuck, Hanna and Wright - the people to know in New Orleans; Myrtle Blanchett, a realtor and an inspiration - she wants things her way and everyone steps aside to let her have it; Renee’ Havig, the most feminine and well adjusted Chiropractor on the west coast and to my wonderful brothers and sister (Bobby, Brent, Karen and Mark). Finally, a standing ovation to my mother, Doris L. Neely, who provided the most ideal upbringing imaginable, whe has been an incredible pillar of strength (morally, financially, and psychologically) all these years, and who has unconsciously implanted the drive for perfection and the confidence that enabled me to create this book and who I miss very much (additionally, who is the best proof-reader in the state of Louisiana, helping to make "Mastering Elliott Wave" as error-free as possible ---any errors still remaining are exclusively of my own making). Glenn Neely - 1989 (revised April 1990) Ee Table of Contents Elementary Discussions ‘What is the Elliott Wave Theory? Price Patierns of Psychology Natural, Non-Periodic Phenomenon AUnique Analytical Tool ‘Additional Examples Why Learn Elliott Wave Theory? ‘Multiple Benefits Mutti-areaApplication ‘Numerous Techniques Unnecessary Helpful in Indicator Clarification Signais Infrequent, bt Reliable Application Requires Time Endless Array of Specifics Memaritction Frequent Indeterminacy Difficalty Why This Book May Create More Controversy What Makes Elliott Wave Theory Unique? CompletePerspective ‘Quanification of Mass Peychology Detailed Categorization GrandSinplification (Clear Deiineation of Price Behavior How Should You Learn the Theory? ‘Why Another Book on Elliott Wave was Necessary ‘Additional Techniques Required Specijic Procedures Described Realitic Diagrams Previously Non-Existent Disclosure of Advanced Concepts Original Presentation Sequence New Terminology ‘New Discoveries, The Neely Extensions How I Discovered these New Concepts and Techniques The Telephone Course Long Hours of Work ‘Where is the Theory Applicable? How Should You Work with and Perceive Eliott? Meticulously Open Mindedly What's Next? Table of Coments-1