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ELLIOT WAVE
PRINCIPLE/
ANALYSIS
The Basis: DOW THEORY
 Charles H. DowCharles H. Dow (1884)(1884)
 TheThe grand-daddy of technicalgrand-daddy of technical
analysisanalysis::
1. The1. The averages discount everythingaverages discount everything
2. The2. The market has three trendsmarket has three trends:: TWRTWR
--
primary/majorprimary/major........................."tide"........................."tide"
--
secondary/intermediatesecondary/intermediate......."waves"......."waves"
-- minor/nearminor/near
termterm....................."ripples"....................."ripples"
3. Major3. Major trends have three phasestrends have three phases
- accumulation- accumulation
- trend-following- trend-following
- speculation- speculation
4. The4. The averages must confirm eachaverages must confirm each
ArifinLatif/Mar95
Elliot Wave Principle (EWA)
EWA: Major Characteristics
Fibonacci Studies: Impulse Action
Fibonacci Multiples & Ratios
Fibonacci Extensions
Fibonacci Retracements
Economic News & the KLCI
(Fibonacci studies)
GANN’S
LAW OF VIBRATION
Geometric Angles
Forecasting Nominal GDP
(Gann studies)
Some Applications of
Elliot Wave Analysis,
Gann’s Studies
& Other Analyses
 Stock market indicesStock market indices -- e.g. KLCI, DJIA, FTSE,-- e.g. KLCI, DJIA, FTSE,
NASDAQ, Nikkei, HSI, STI, SET, JCI, ……NASDAQ, Nikkei, HSI, STI, SET, JCI, ……
 Stocks & sharesStocks & shares -- e.g. TMT stocks, IBM, ICI,-- e.g. TMT stocks, IBM, ICI,
Microsoft, NTT, Hutchison, OCBC, CP, Salim Group,Microsoft, NTT, Hutchison, OCBC, CP, Salim Group,
Sime Darby (multiple listing?), …..Sime Darby (multiple listing?), …..
 CurrenciesCurrencies/Forex/Forex -- e.g. USD, Yen, Sterling-- e.g. USD, Yen, Sterling
 Agricultural commoditiesAgricultural commodities
 RSS1, CPO, Cocoa, Pepper, Vegetables (e.g. RedRSS1, CPO, Cocoa, Pepper, Vegetables (e.g. Red
Chilly), ikan jenahak, PorkChilly), ikan jenahak, Pork
 Extractive commoditiesExtractive commodities
 e.g. Gold, Tin, Coppere.g. Gold, Tin, Copper
 Industrial commoditiesIndustrial commodities
 e.g. Aluminium, Urea, Petrochemicals, Sugare.g. Aluminium, Urea, Petrochemicals, Sugar
Forecasting KLCI’s Megatrend
(EWA, Gann studies & Pitchfork)
Forecasting the Ringgit/USD
(various charting studies)
Forecasting qtrly Rubber prices
(EWA)
Forecasting monthly CPO prices
(EWA)
Forecasting daily Cocoa prices
(EWA)
Forecasting daily Pepper prices
(3-Line Break chart)
Forecasting monthly Chilly prices
(Seasonal/Cyclical Analysis)
Forecasting daily Gold prices
(EWA)
Forecasting daily Tin prices
(1% Kagi chart)
Some References for
EWA

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Elliot Wave Analysis (EWA) lectures @INTAN Kiara, KL 1998