Ask Colin

I believe you have heard of Elliott wave principles. What do you think of this type of trading method? Is it reliable? How accurate/good is it in forecast price trends/objectives?

Elliott Wave is not really a trading method. I see it as an analysis system. Over a long time, I have yet to find anyone who uses it well for trading. It is not something that I use, because it is based on the idea that there is some sort of internal order to the markets, which can be discovered if you find the key. It is my view that the markets are infinitely variable in the way they unfold. You can fit them into an Elliott Wave framework if you work hard enough at all the exceptions. However, I cannot easily see how you trade it.