The analysis of the various markets covered here is achieved by using a combination of tools. By combining the predictive powers of Elliott Wave, Fibonacci Levels & Hurst Cycles together with Multiple Time Frame Technical Indicators we are able to provide detailed accurate analysis of likely market movements.
This powerful multi disciplined approach to market analysis enables us to forecast probable future market price levels at specific times thus identifying high probability low risk trade entries and exits. Primarily we rely on the Elliott Wave Principle introduced by R N Elliott in his seminal work published in August 1938, “ The Wave Principle”
Ralph Nelson Elliott was an American accountant and author, whose study of stock market data led him to develop the Wave Principle, a form of technical analysis that identifies trends in the financial markets. He proposed that market prices unfold in specific patterns, which today we refer to as Elliott waves.
Elliott stated that, while stock market prices may appear random and unpredictable, they actually follow predictable, natural laws and can be measured and forecast using Fibonacci numbers. Soon after the publication of The Wave Principle, Financial World magazine commissioned Elliott to write twelve articles (under the same title as his book) describing his new method of market forecasting. In the years after Elliott's death, other practitioners (including Charles Collins, Hamilton Bolton, Richard Russell and A.J. Frost) continued to use the wave principle and provide forecasts to investors.
Frost and Robert Prechter wrote “Elliott Wave Principle”, published in 1978. This work is considered the de facto guide to R.N Elliott’s theory and indeed Robert Prechters prominence as a forecaster during the bull market of the 1980s helped bring Elliott's wave principle back to market analysts attention during that time.
R. N. Elliott's analysis of the mathematical properties of waves and patterns eventually led him to conclude that "The Fibonacci Summation Series is the basis of The Wave Principle”. Numbers from the Fibonacci sequence surface repeatedly in Elliott wave structures. Elliott actually developed his market model before he realised that it reflects the Fibonacci sequence. The Fibonacci sequence is also closely connected to the Golden ratio (1.618).
R. N. Elliott stated that in order to analyse market behaviour it was necessary to understand Pattern, Price and Time.
We use The Elliott Wave Principle to ascertain defined patterns of trend in markets and the associated Fibonacci projections and retracements to determine likely areas of future price. We also utilise a number of key technical indicators in order to identify areas where trends are likely to either reverse or accelerate.
Elliotts Wave Principle does not provide methods for forecasting future points in time where market peaks and troughs are likely to occur. For this we rely on the work of J M Hurst and specifically “Hursts Cyclic Theory” as presented in his Cycles Course.
Hurst published two seminal works: a book called The Profit Magic of Stock Transaction Timing, followed a few years later by a workshop-style course which was called the Cyclitec Cycles Course (later published as JM Hurst’s Cycles Course – currently not in print).
This theory isn’t that well known and is not widely used by technical analysts, probably for two reasons:
Firstly, Hurst’s Cyclic Theory is not “easy”. While it is beautifully simple and elegant in its essence, it is not a simple theory to understand or to apply. The Cycles Course is over 1,500 pages long, and most people take several months to work through it.
Secondly, although the theory presented in both the Profit Magic book and the Cycles Course is the same, there is a vitally important distinction between the analysis processes presented in the two. Hurst claimed his success on the basis of the process presented in the Cycles Course, whereas many people read the Profit Magic book and go no further, with the consequence that they never discover the more effective process presented in the Cycles Course.
Hurst’s Cyclic Theory, as presented in the Cycles Course is a very powerful analytical tool that can lead to consistently profitable trading decisions. We use a software application (Sentient Trader) which enables us to provide cycles analysis based on Hursts Cyclic Theory as presented in his Cycles Course. Due to the work by David Hickson at Sentient Trader we are also able to now analyse cycles of much smaller degree than the 5 Day Cycle which was the shortest cycle studied in Hursts original work.
We encourage members to study the basic concepts of each of the modalities we use at Time Price Analysis in the series of video tutorial we have provided here in the Education Section of this site in order to better understand and benefit from the analysis we provide.
Please watch the introduction tutorial below first that provides a guide as to how to read and interpret the various annotations on our charts.