1982issue C051-2
Why wave counting stops full Elliott automation
Wave counting is treated as the required first step of Elliott-wave work. Channeling, retracements, and Fibonacci targeting are programmable only after that count exists, which is why a complete real-time counting program was left as a large body of statistical work that had not been done.
- Wave counting is the required first step of Elliott-wave work. Channeling, retracements, and Fibonacci targeting are programmable only after that count exists.
- The identification standard is wave form, not time periodicity and not fixed time or price relationships inside a structure.
- A complete real-time counting program would have to score many alternate structural shapes at each step of a market sequence, a large body of statistical work that had not been done.
- One shortcut lets the computer accept human wave labels and then compute channels and ranked targets. Another watches for a typical five-wave structure near completion and signals only then.
Counting comes first
Wave counting is treated as the required first step of Elliott-wave work. Channeling, retracements, and Fibonacci targeting are described as programmable only after that count exists.
In this usage, Elliott wave analysis is a patterned reading of market swings that treats labeled wave structure as the input for later channels, retracements, and ratio targets. Wave counting is the prior act of assigning degree and form labels to price swings so those later measurements have a defined structure to compute against.
Wave form is the identification standard
The identification standard is wave form, not time periodicity and not fixed time or price relationships inside a structure. Wave form means the shape and subdivision pattern of a swing, used here instead of calendar cycles or fixed time-price links.
Subdivisions of the same degree can differ widely in size and complexity. Those subdivisions may include extensions, diagonal triangles, and failures.
Why a full counting program stalls
Elliott wave counting is the live assignment of Elliott labels while considering alternate structural paths as new price prints arrive. A complete real-time counting program would have to score many alternate structural shapes at each step of a market sequence.
That requirement is described as a large body of statistical work that had not been done.
Two shortcuts that leave the labels to the analyst
One proposed shortcut is to let the computer draw the price chart, accept human wave labels, then compute channels, likely next patterns, and ranked price and time targets. Channeling here means constructing containment lines on an already labeled structure to frame the next path. Fibonacci targeting means ranking price and time objectives from labeled wave relationships after the count is given.
For stock-market charts, that workflow would also display daily advance-decline and volume series to help judge wave personality after the labels are entered.
A second shortcut would watch for a typical five-wave structure near completion and signal only then, avoiding bar-by-bar alternate counting. That late-stage recognition method is described as likely to miss unusually shaped formations while speaking infrequently enough that the analyst need not monitor every phase.
All readings on this track · 14 readings
- 1982Why wave counting stops full Elliott automation
- 1988Counting the 1987 Grand Supercycle peak as three claims
- 1990Promoting wave degree after a near-full retracement
- 1991A locked gold zigzag that had to produce two prices
- 2001Constructing Elliott wave counts with Fibonacci ratios
- 2002Constructing nested Elliott wave counts with ratio clusters
- 2002Auditing five-wave counts for overlap and length
- 2004A completed supercycle count as a Fibonacci ratio laboratory
- 2011The wave count as a falsifiable trade hypothesis
- 2014Constructing Elliott correction counts with Renko and zigzag
- 2015ABC wave labels as a square-of-nine timing hypothesis
- 2017Top-down Elliott wave count alignment
- 2019Wave-degree discipline for a 2018-2019 US long-wave top
- 2019Treat a completed cycle peak as a laboratory for repeating wave ratios