Wednesday, April 08, 2009

NEoWave

NEoWave is a proprietary market analysis technique developed by Glenn Neely. It is commonly compared to Elliott Wave analysis in its approach to pattern recognition of price behavior in individual markets. There are some significant differences though, not the least of which is described below in NEoWave's "Question of the Week."

Question Of The Week


Question:

In your NEoWave TRADING services, you have mentioned the concept of price behavior many times. What is price behavior?

Answer:
The concept of "price behavior" is covered indirectly throughout Mastering Elliott Wave, but is specifically addressed in the complex logic sections of Chapter 3 and in the "confirmation" sections of Chapter 6.

The NEoWave concept of "price behavior" focuses on how a monowave (or group of monowaves) relates to surrounding waves (or wave groups) from a price, time and complexity perspective. In general, whichever direction a market moves the most (in price) in the least amount of time IS the direction of the trend of one larger degree. So, for example, if you see an advance in Gold of $10 in 1 day, followed by a reaction of $5 over 5 days, Gold's "price behavior" tells us the trend in Gold is UP. Any wave count that disagrees with that "fact" will probably be wrong.

For example, let's assume that after the above $10 advance I place a wave count that implies Gold is topping. The slowness of the $5 decline that follows would quickly FORCE me to change my mind and alter wave structure. Why? Because my past assumption of a terminating advance would be in direct contradiction to current price behavior implications (i.e., the implication that the trend is still UP).

It is because of the above concept, and many more NEoWave concepts (such as self-definition and self-confirmation), that I'm frequently able to talk about markets so objectively and matter-of-factly, as if I'm "reading tomorrow's paper," instead of merely expressing my own beliefs. I'm simply telling you (my subscribers) what the market is telling me to say in real-time based on its behavior, not just its wave structure. It all has to be in-sync to make sense, be logical and predictable.

A

8 comments:

Anonymous said...

Your MO is clear now. When the market is performing per your predictions, you harp on it bringing attention to your "wisdom". When it isn't, you ignore that topic and post garbage to distract readers.

Allan said...

You're very welcome! I thought that was a great insight and very generous of Glenn Neely to allow me to re-post the item. I try to keep things interesting here on this free blog, both for my readers and myself, trying to include a range of approaches to market analysis, as time permits. Thanks for your continued support.

Piecemaker said...

While not my place, I'm embarrassed for the anonymous coward who posts such absurd, transparent crap on your blog. I and many, many readers truly appreciate the efforts you make to quantify and clarify these markets. Keep up the good work and never, ever stoop to the whims of angry posters who are unable to take responsibility for their own investment choices. It's pleasure to follow your thinking and a challenge to understand it all, but well the worth the effort IMO. I enjoy the lessons you offer and I hope some day to be able to be able to add constructive insight to this community you have created.

Carl M

Anonymous said...

Allan, Have you ever seen a chart like this? Terry

mlomker said...

Allan is very generous. I'd make aspersions toward the lineage of such posters. :)

I know that Allan filters Neely's trade recommendation but you'd be well off if you traded Neely's ideas to the letter. I've been a subscriber to NEoWave for 6-7 months and we've made 100's of S&P points and had a few small losses. Impressive enough that I have a futures account that sits idle waiting for his trades.

Allan is doing you a favor by highlighting one of the very few trading services that is wildly profitable (albeit out of the market much of the time).

Anonymous said...

looks like cxm closed at a 52 week high closing price. could be ready to fly.

Anonymous said...

Allan,
You have provided a road map to investment success by informing us of the Neowave and MarketClub services.
Glen Neely accurately called for the 20% bull rally in this bear market. We are now on the sidelines waiting for our next move.
Those services have a track record for making accurate predictions.
Even subscribed to Xyber9 for a short period of time. 2 out of 3 working just fine. Thanks again.

John said...

Is the NEOWAVE trading service only for futures?