The Elliott Wave Software README File


This short document contains:

1) A Brief Description of this Software Package
2) An Overview of the Elliott Wave Principle
3) System Requirements for the software
4) Installing Instructions
5) Trouble Shooting
6) Author's contact details


DESCRIPTION:

This software product is designed to analyse stock market and other securities using the Elliott Wave Principle.



THE ELLIOTT WAVE PRINCIPLE:

The Elliott Wave Principle is probably the most complex and comprehensive technical analysis of market activity.

This software product processes the seemingly endless number of rules associated with the Elliott Wave Principle and presents you with a fully labelled Elliott Wave Analysis of the displayed data.

Deciphering the patterns is often a complex task, as patterns of different degree (size and time) can interact with each other. Because of this complexity and the years of study often needed to fully understand and apply the principles, relatively few traders use Elliott Wave Analysis. 

This software product is designed to make Elliott Wave Analysis easily understood and accessible to any person wishing to increase trading profitability.

The founder of the Elliott Wave Principle was R.N. Elliott (1871-1948) who spent the latter part of his life meticulously observing plotted price activity in liquid markets and discovered about a dozen major patterns that recur with amazing predictability. These patterns occur as regularly in 10 minute time interval charts as those charts which span hundreds of years.

The basic premise of the theory is that the plotted price activity of a market is the graphical representation of the ebb and flow of crowd psychology as it moves from pessimism to optimism and back again. This accounts for the seemingly random flow of price action into predictable and identifiable patterns.

No one can predict the action of a single individual. However, crowd behaviour is often very predictable. Price action of the market is largely a result of the mass emotional state of a crowd of traders. The greater the number of traders, the more predictable the price action.

Markets that have a broad range and large number of traders usually exhibit consistent Elliott Wave behaviour. You will notice that markets that are susceptible to manipulation, weather and other non human interference will not demonstrate the patterns as well.

Thinly traded securities such as individual stocks are usually poor candidates for Elliott Wave.

However, liquid markets such as stock averages work well, since prices are based on the mass psychology of a large number of traders.

Elliott noted that history does not repeat exactly. At no point in history is the environment exactly the same as at another point. It is sometimes similar, but never identical. Therefore, the market, which is a reflection of the mass psychology of traders, will never exactly repeat itself.

This is the reason system developers, which form strategies based on historical data, can never accurately predict the future.

Correctly interpreting Elliott Wave Analysis will prevent you from entering the market when there is little or no potential and allow you to identify those times when the probabilities are greatly in your favour and the risks are minimised.

The Elliott Wave Principle can frequently give you the pleasure of calling major turning points in the market. At times, it will virtually tell you what price level the market will reach.



SYSTEM REQUIREMENTS:

a) IBM PC or compatible
b) 386 (486 or better recommended)
c) 4Mb Ram
d) 1 Mb of Hard Disk space to load; variable amount of temporary disk space needed depending on the analysis being performed.
e) Windows 3.1 or greater, running in Enhanced Mode. 



TO INSTALL THE SOFTWARE UNDER WINDOWS 3.x

1) Place the disk into the floppy disk drive.

2) Maximise the PROGRAM MANAGER window on the display.

3) Select the FILE menu on the menu bar.

4) Select the RUN menu from the FILE drop down menu.

5) Using BROWSE, locate the file SETUP.EXE which is one of the files that came with this software package. Select SETUP.EXE and RUN it.

6) After a short while, the SETUP program will display a message asking for you to select the directory to place the program into. Select a directory, or just press the OK button.

7) When the SETUP program has completed, a new program group will be found in the PROGRAM MANAGER window containing the Elliott Wave software. Click on this window to open it. Three icons will be displayed. One icon is the software, and two are help files. To run the software, select its 
icon.

If you have trouble installing the software, or experience any error messages, check to see if the solution is listed below in the section titled TROUBLE SHOOTING:



TO INSTALL THE SOFTWARE UNDER WINDOWS 95

1) Click on the Windows 95 Start button, then select RUN.

2) Select BROWSE and locate the file SETUP.EXE which is one of the files that comes with this software package. Run SETUP.EXE.

3) Follow the instructions that appear on the display.

4) When the Elliott Wave Analyser is installed, a window will appear containing three files. One file is the Elliott Wave software, and the other two are Help files. You will also find these three files listed as a group in your programs directory. To execute the software, click on its icon.

If you have trouble installing the software, or experience any error messages, check to see if the solution is listed below:



TROUBLE SHOOTING:

The following list of problems and solutions all refer to installing the software. 

a) SETUP has been known to give errors if run using File Manager under Windows 3. Run SETUP from the Program Manager - FILE - RUN menu.

b) SETUP may give a warning message during the install in Windows 95. Sometimes SETUP is unable to update a file because the copy on your hard disk is currently being used. Warning messages are generally of little importance and may be usually be ignored. A common warning message is "Cannot copy DDEML.DL_". This message can be ignored.

c) SETUP will give an error if a Visual Basic program is currently running. You may have need to close all open programs and try again.

d) If you get an error message stating that SETUP is unable to update a given file, such as THREED.VBX, there is probably another program currently running in memory using that file. If this happens, close all programs running in memory and run SETUP again. If this doesn't work, follow the solution outlined below.

e) You may get an error message stating that a given file, such as THREED.VBX is an older version than what is required to run the software. This error may also occur when the software is first executed, and can be caused if an older version of THREED.VBX is found in a directory other than the Windows\System directory. THREED.VBX should only reside in the Windows\System directory. To correct this problem, delete all copies of THREED.VBX from any directory other than the Windows\System directory and try again. If your system will not let you delete the file, rename it. For example, rename THREED.VBX to THREED.OLD. It may also be necessary to delete (or rename) THREED.VBX from the Windows\System directory. You may need to exit windows and delete (or rename) THREED.VBX using the DOS command DEL C:\WINDOWS\THREED.VBX or similar.  Remember to exit windows, turn your computer off, and re-start Windows before attempting to run SETUP again. This is often necessary because Windows may have the rouge program in memory. This problem has also been known to occur with other files used by the Visual Basic system. The same solution applies.

f) If you experience the error message "COMMDLG.DLL in use" it is because there is a program running in the background on your computer that uses COMMDLG.DLL. This can be caused by one of two reasons: 1) You are using FILE MANAGER to load the program, or 2) Your WIN.INI file loads and runs a program when windows is started. If you have been installing using the PROGRAM MANAGER, the problem is probably caused by a file loaded by WIN.INI. To correct this, use NOTEPAD to open WIN.INI, which should be found in your Windows directory. Search for the commands "LOAD=" and/or "RUN=" commands and delete and text following equals (=) sign. Remember to write down the details so that you can restore WIN.INI to its original state after you have installed the software. After changing WIN.INI, exit out of Windows and re-boot. You should then be able to install the software without the error message.

If you have experienced a problem that is not listed above, please contact the author for a solution.



Author's contact details:

Richard Swannell
Center for Elliott Wave Analysis
28 Cameron Court, WILLETTON, 6155, AUSTRALIA
Ph: 61-9-457-0069  Fax: 61-9-457-1792
Internet email: cewa@iinet.com.au
World Wide Web Site: http://www.iinet.com.au/~cewa
