Christo,

I don't mean to be dissagreeable but I want to point out that FB doesn't rely on one specific analysis too. Elliot waves are just one tool in his chest.

He goes to great lengths to show all the technicals he uses and if you are a subscriber, I refer you to his handbook, issued last January.

In addition to Elliot wave patterns he uses a host of proprietory TA tools that he has developed.

I personally don't understand E-wave theory enough to refute it other than that I don't get the big deal with it. To me it seems obvious that you'll get up down up down cycles and I don't see what E-wave is really adding, particularly since they can either be ABC or ABCDE patterns so if the market keeps going up or down after the ABC completion, you can just add another couple of cycles on till you're proven right?

However, I guess it's useful as a visual.