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How does WaveBasis work?

The foundation of the research that underlies WaveBasis actually dates back more than 20 years, however, it wasn’t until recent years that technology caught up to that original vision. This reignited a desire to capture the Elliott Wave approach in a more objective and comprehensive way.

Flowing from that desire, WaveBasis has devised a computational technique for automatically producing Wave counts by reliably detecting Elliott Wave patterns in price data. The approach properly implements the core Elliott Wave rules, and is intrinsically cognizant of the fractal nature of the patterns. Additionally, the system allows for a high degree of flexibility in selectively applying Elliott Wave guidelines to influence the core pattern detection process.

The WaveBasis engine uses proprietary statistical and machine learning algorithms, along with expert system techniques, to apply the rules and guidelines of the Elliott Wave methodology. The layering of these technologies produces the most comprehensive, accurate, and statistically sound automated Elliott Wave intelligence that has ever been made available to the public.

The computational requirements for this technique are substantial…in less technical terms, this means a bunch of fast computers and optimized software are required in order to make it all work.

Of the many ways to approach Technical Analysis of financial markets, Elliott Wave analysis has long been considered one of the most difficult to learn, and difficult to apply consistently in practice. Additionally, Elliott Wave analysis is often criticized for being too “subjective”. This criticism has some merit, because on any given day it’s not hard to find EW analysts with differing wave count interpretations for any given market and period.

WaveBasis is working to change this perception by taking a more scientific and objective approach. And, we’re working hard to make it possible for more people to experience the trading edge that the Elliott Wave methodology offers, which has until now been reserved for a dedicated few. We believe Elliott Wave analysis should be more accessible, and that the Elliott Wave community deserves to be better served with better tools.

A complete platform for automatic detection and analysis of Elliott Wave patterns in financial markets, the WaveBasis tools and algorithms unlock a wealth of never-before-harvested data intelligence to provide unrivaled Elliott Wave-focused investing and trading decision support. This means unprecedented insight into the presence of Elliott Wave patterns in market data – plus innovative tools to help make quick sense of it.

Access to the precision automation afforded by WaveBasis is enabling a far wider investing and trading audience to experience the benefits of Elliott Wave Analysis than ever before, and allows existing Elliott Wave professionals to meaningfully augment their own trading, as well as profoundly enhance the depth and breadth of their service offerings.

This began as an experiment and a curiosity, and has come a very long way. We hope you come along for the ride, because we’re just getting started.

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