Join over 10,000 people who receive Michael Covel's newsletter & podcast episodes.

as seen on:

Elliott Wave Junk

Briefly stated, Elliott Wave is a technical indicator that purports to offer buy and sell signals. It appeals to the silly notion held by many investors that repeating wave patterns exist and counting them will make you money.

Elliott Wave systems and software make statements like:

  • You can have mathematical models generate objective and precise wave counts.
  • You can compare current markets with historical patterns to generate Elliott Wave counts.
  • You can receive price projections showing the most likely price range that a wave will reach.

The Claim: You count the waves. Then once you have the waves counted you will be able to pick when to buy and sell stocks and futures.

The Truth: Basing your trading off subjective patterns has proven time and time again useless. You can find a pattern in anything if you stare at it long enough. Also, projecting a price into the future is baloney.

The Source: The big Elliott Wave guru for many years was Robert R. Prechter, Jr.. We are sure Bob Prechter is a nice man, but Elliot Wave is just not a viable trading strategy.

Elliott Wave might hold some academic interest if this is what “bakes your potatoes”, but in terms of a trading approach — forget it.

More on Elliott Wave.

Trend Following Products

Review trend following systems and training:

Michael Covel Trend Following Products

Michael Covel Trend Following Products

More info here.

Trend Following Books
Trading Systems

Pricing for trend following systems, risk management, trading psychology and black swan strategies. Absolute return systems and education for brand new traders and established pros. Thousands of clients across 70+ countries. Client feedback.


The Trend Following™ podcast. Listen now on iTunes and Android. Top authors and traders plus alternative commentary. 5M+ listens across 188 countries & territories.

Small Town Guy Makes Millions

His trend following experience on video sent to your home. Get your free video delivered immediately.

TurtleTrader® Site Map

Small town guy makes trend following fortune. His free lesson delivered on video: GET VIDEO NOW.