Elliott Wave Plus

It’s the PLUS that makes the difference!

Our system of carefully combining multiple methodologies of technical analysis creates higher confidence, less subjective market forecasts for traders.

Welcome!

My name is Sid Norris and welcome to Elliott Wave Plus!  I’ve been an active investor, trader, and student of the markets for over 30 years. From 2011 through 2016, I provided market forecasts for subscribers at ElliottWavePredictions.com.

During that five year period, I continually sought new ways to improve the accuracy and usefulness of the wave principle.  In 2013, Hurst Cycle Analysis was added to the toolkit. Over the next three years, the ability to combine Hurst with Elliott evolved and improved.  Additional methodologies were added, and the result is a unique system of technical analysis with built-in “checks and balances”.

Elliott Wave Plus is the culmination of everything I’ve learned about technical analysis and market forecasting.  If you choose to subscribe, I hope our work is most beneficial to you!

Our System

Over the years, we’ve found several methods of technical analysis to be worthy of constant consideration when trading.  This combination of robust forms of technical analysis creates a holistic approach to trading that is more powerful than Elliott Wave alone.

Elliott Wave (w/ Fibonacci price targets)

Ralph Nelson Elliott (1871-1948) discovered the Wave Principle back in the 1930’s.  He, had lost a lot of money as a result of the 90% stock market crash from 1929-1932, and wanted to find out in retrospect if there could have been a way to predict the crash ahead of time.  He plotted historical price movements of the Dow Jones Industrial Average going back several decades by hand on graph paper, and upon close examination, found the existence of repetitive forms, or waves.  He also found that price trends (wave lengths) were often related to prior wave lengths, and that those relationships were rooted in the Fibonacci sequence, and more specifically, the golden ratio (.618 & its inverse, 1.618). 

In a nutshell, the repetitive historical wave patterns showed that progress (growth) occurs in five waves and regress (decay) occurs in three waves.  The complete advance and decline cycle is therefore eight waves.  The basic eight-wave form is fractal in nature, meaning that it appears at all degrees of trend (chart timeframes) simultaneously.  For complete details regarding the rules, guidelines, and characteristics within the Wave Principle, please read the first 100 pages of “Elliott Wave Principle” by Frost and Prechter.  Additionally, please view my educational video: “Sid’s Elliott Wave 101”.   

Hurst Cycle Analysis

JM Hurst was an American engineer who, in the 1960s and 70s, pioneered the use of the modern computer to analyze cyclical price movements within the financial markets. 

Hurst’s work suggested that there are multiple cycles acting on all financial markets at all times.  Based on historical movement in the US stock market, he developed a “nominal model”, which identifies 18-year, 9-year, 4.5-year, 18-month, 40-week, 20-week, 80-day, 40-day, 20-day, 10-day, and 5-day cycles.  These cycles overlap and combine to influence price movement.  Each cycle can and will, in reality, vary a bit from the average historical length of that cycle, but as a general rule, if there are more cycles currently pushing to the upside than the downside, price tends to go up, and vice versa. 

Hurst’s model explains why the markets occasionally trend very strongly.  When most cycles align in their directional pressure, a fast, one-directional market results.  He also observed that if price is strongly trending to the downside, a synchronized trough of numerous cycles is likely.  Synchronized troughs create wonderful buying opportunities.

Fortunately, there is software available today to perform Hurst cycle analysis on any chartable item very quickly.  That software is called “Sentient Trader”.  I use Sentient Trader / Hurst analysis extensively, as it provides an ideal “check and balance” when used in combination with the potentially subjective Elliott Wave theory.  For more information about Hurst cycle analysis and Sentient Trader software, check out SetntientTrader.com.   Additionally, see my educational video: “Introduction to How I Combine Elliott Wave and Hurst Cycle Analysis”       

Trend Exhaustion Indicators

As computer algorithmic trading has gained popularity in recent decades, attempts have been made to predict trend exhaustion.  A number of these indicators are available today, including, for instance, “SequenceCounter” on the ThinkorSwim platform by TD Ameritrade.  Many of these indicators were inspired by the work of Tom DeMark, and specifically his “Sequential” and “Combo” indicators.  While these indicators will fire premature trade signals from time to time, they are worthy of consideration on balance, especially if a known Fibonacci price target has just been reached, or very nearly so.   

Extreme Sentiment Positioning

Occasionally, market sentiment reaches meaningful extremes.  For instance, at most major market tops, the great majority of retail traders are “all in” long, and the great majority of large commercial traders are heavily short.  This is because retail traders are generally trend followers, and large commercial traders tend to “fade” mature trends.  The opposite generally holds true at major market bottoms.  Bear market crashes nearly always end with retail traders heavily short, and large commercial traders heavily long.  The subsequent post-crash rally is then fueled by short covering, which is retail traders buying to exit short positions. 

This extreme spread between the positioning of retail traders and large commericals is something we constantly look for, as it provides an optimum condition for trend change. Periods exhibiting extreme sentiment positioning can last for a weeks though, so trading solely on sentiment can be difficult from a timing perspective.  However, it certainly is handy to be aware of extreme sentiment positioning when all of our other methodologies agree that a change of direction is imminent.

Inter-Market Correlations

There are always correlations at work in the markets.  Correlated items tend to move up and down together.  While virtually all correlations come and go over time, it is well worth examining current market conditions to see if traditionally highly correlated items are moving together.  For instance, if Gold is trending to the upside, the gold miners ETF (GDX) is also likely to rally.   Another example, but this time of inverse correlation:  if the US Dollar Index is weakening, commodities should generally rally, as they would be priced in weaker and weaker US dollars. 

Sometimes, items that are normally correlated temporarily divorce themselves, only to hook back up later.  In that case, the laggard is likely to “catch up” with the leader.  Inter-market correlation conditions provide an important perspective on projected price direction.   

Multi-Timeframe MACD Divergence

The MACD indicator is one of the most valuable standard indicators available on all trading platforms.  “Divergence” is when price is making a new extreme, but a momentum indicator (like MACD) is not.  Divergence between price and the indicator can indicate an imminent trend change.  Also, the longer the timeframe of chart, the more powerful the potential trend change due to the divergence.  For instance, you can wait a long time for MACD divergence to develop on a weekly or monthly chart, but the size of the coming trend charge (upon fully formed divergence) is likely to be substantial. 

Careful monitoring of the MACD indicator on multiple chart timeframes can provide important clues as to future market direction because multiple divergences at smaller timeframes generally lead to a larger, more powerful divergence at larger timeframes. This is one of the reasons we use multiple timeframes, each showing the MACD indicator.  For more details on how I utilize the MACD indicator, check out my video: “Early Detection of Trend Changes Using a Combination of MACD, and Japanese Candlesticks”.

Our Subscription Services

Elliott Wave Plus subscription choices include weekly webinars, twice-per-week screenshots, and educational videos and documents (guides):

Webinars

Weekly EWP “Counts” webinars feature extensive analysis of the world’s major stock markets, commodities, currencies, and bonds.

Screenshots

Updated editions of EWP ScreenShots are published every Sunday and Wednesday. Included are multiple timeframe charts of the most popular tradeable items.

Videos

Educational videos explaining EWP’s unique methods of technical analysis.

Guides

Educational documents explaining EWP’s unique methods of technical analysis.

Testimonials

  • Sid,  Just a quick note thanking you for your service.  The wave counts, cycles, and special indicators seem to be working incredibly well!   I just liquidated my shorts in Gold and Bonds at the close . . . .  and initiated shorts in the Russell 2000.  I think your projections were for the Russell to reach 1168.xx to 1172.00 on this move higher.  We’ll see what the news from overseas brings tonight (or over the weekend if too close to call), but I’m in a great position with profits from earlier trades.  Thanks again!

    D June 2016
  • Fantastic explanation {Sid}.  That is one more reason why I will continue to be a subscriber of yours.  My biggest weakness in Elliott has always been backing way up and looking at the big, bigger and biggest pictures.  You are a great model for doing that correctly and I’m reminded once again how important it is.  I sincerely think you have found the “secret sauce” with Elliott and Hurst.  As you say, no system is perfect but yours appears to be improving the odds of being correct.  Sincere thanks for your time.

    G.H. June 2016
  • Hi Sid . . I think it {the Early Detection of Trend Changes movie} was the best way of spending 12.50 USD ever!  This really is “must see” in EW education.  Great work and thank you very much for sharing and showing your secrets of counting.  If anybody have a problem with correct identifying waves – they should simply view  “Early Detection of Trend Changes by Combining EW & MACD”.   Now, I’m feeling strong enough to try my own hand!  I wish you all the best.

    Kate P. (Poland) June 2015
  • Hi Sid,  This is a ‘heart-felt- thank you and nod to your professionalism.   Thanks to your information mid-week and my own look at GDX  shaping up on Friday I am out of NUGT GDX and GDXJ. So a handsome profit and looking to ‘probably’ move in again around Jan 26. So very happy to hear what you had personally done. Although still unfamiliar with options you mention, NUGT and DUST give me enough ‘considered’ leverage.   So I have a lot to thank you for in terms of achieving goals, a good lifestyle and ability to help the family.   Big thank you from across the pond.”

    E.P. January 2015
  • Dear Sid, I always wondered how it would be possible to make a Disney dream come true for my family. My children would often point to the Magic Kingdom Castle which features before every Disney movie and ask, “Can we go there daddy? and I’d reply, some day children.. some day… Truthfully…?  I was doubtful and disheartened – it would be financially impossible. But on January 1st 2013, I made a decision I’ll never forget. I reached out for your help. Sid. You have made an immeasurable difference in our lives. I’m forever grateful… I cannot thank you enough.”

    J.F.
    J.F. July 2013
  • I just wanted to say thank-you for providing your service! I have learned more about Elliott wave in the last month listening to and learning from you than I have in the last five years trying to read and understand the books. I recently made 65% trading pink wave 3 of NUGT in 9 days.

    D.G.
  • Hello Sid . .  It is thanks to you that I recently bought a significant amount of GDX Gold vector and sold at the top – 31.15 on the 27.  Very worthwhile and I had the confidence to exit as I did.  I appreciate your careful commentary and analysis that give an added layer to my decision making.  Many thanks,

     E.P.
  • Hi Sid,  I’m a young trader, new to the world of forex trading.  I’ve viewed some of your postings and they are quite amazing!  Your analysis covers all the essential rules and guidelines of the wave principal that I’ve had such a hard time grasping until now. Thanks for your help and support.

    S.H.
  • Hi  Sid,  Your call on the  US dollar is amazing!    It does appear a trend reversal is a happening.  I have several positions in UUP based on your call  (always with stops) and they are in the green!!  I dunno if your other viewers/followers would be interested in a market update (indices, currencies, commodities) without the Elliott Wave theory preface or tutorial, but I certainly would relish a webinar  that would just immediately delve into your webcount(s) and your opinions.  Just an input of mine as you do post updates from time to time, and I need to remember to make a donation for this month.  Anyway, amazing call on the $USD.  Regards

    R.K.
  • “Wow… that was excellent… by far the best webinar/presentation on the financial markets I have ever seen!  The grasp you have on all of the markets and financial news is remarkable.  Thank you very much for your work.  Regards,

    A.L.

Get started today. It’s Free!