Neo Wave and NEoWave
What is Neo Wave
NEoWave is a subscription based trading service involving trading and forecasting. It does so through a very complex form of neo wave analysis.
Neo wave analysis has far more rules and parameters than the better known Elliot wave, but the trade off is that it allows far more specific predictions. In the end, through the NEo Wave platform, a series of precise trading recommendations with incredible detail and specificity are produced.
According to the website, the NEoWave service does all the work for you, and covers most of the major tradable assets.
Theory Behind Neo Wave Analysis
Neo wave analysis, as mentioned above, makes use of incredibly complex wave analysis. It can be compared to the better known Elliott Wave Theory but claims that it is less intuition based and more objective.
The first step to neo wave analysis is to find an appropriate time frame. Usually, the largest time frame is the best, but this is not always the case. The goal with your time frame would be to minimize complexity, thus increasing the accuracy of your analysis. This is done through the identification of monowaves.
Determining Monowaves for Neo Wave Analysis
In order to understand Neo Wave analysis, or Neo Wave Theory, we need to understand waves. A wave is a straight line with any movement on the x-axis. A monowave is the building block of a wave.
In other words, it is any movement in price after a change in movement direction, until the next change in direction. This can be seen in the image illustrated below. Each blue line occurs after a downward direction change and each yellow line after an upward direction change. These yellow and blue lines are the monowaves.
The easiest range to work with when performing a neo wave analysis is between 13 and 55 monowaves.
Once you have the optimal amount of waves present, you can analyze your data set. This process is extremely complicated but can be broken down into a single concept, pattern recognition.
As can be seen above, there are a series of waves that push the price higher, before the price is withdrawn by another wave, and the cycle continues until the greater trend changes. This is the basis of both Elliott Wave Theory and Neo Wave Theory.
The difference with Neo Wave theory is that there is an additional set of rules that needs to be maintained, all related to wavelength. There are fifteen rules in all, but the most critical are as follows.
1. Wave 2 cannot retrace over 61.8% of wave one.
2. Between waves 1,3 and 5, 3 CANNOT be the shortest.
3. Wave 2 and Wave 4 cannot have overlapping values.
These are very similar to the rules of Elliott Wave Theory, but tend to be far more specific.
Neo Wave vs Elliot Wave on the NEoWave Platform
The NEoWave Platform specializes in neo wave analysis, as the name suggests. However, if you are unsure about the use of neo wave strictly, as opposed to Elliott Wave Theory, signing up will give you access to the advanced Elliott Wave analysis every week in their Education and Forecasting service, provided that you go for the more expensive package.
Cost of NEoWave
NEoWave offers two subscription sets. The first, and smaller of the two, is priced at $30 per month. This is for the trading service only. Included in the trading service are recommendations on precise entry, stop management, and exit strategies, as recommended by Glenn Neely, which are sent out via email.
There is no clear indication as to how often these emails are sent out, as it varies depending on the overall market conditions with emergency updates in especially volatile markets.
There is also a larger, bundle package, which is priced at $300. This bundle includes the trading service as well as an additional forecasting service and educational service.
Regarding the Forecasting service specifically, it seems that there are weekly, monthly and 1.2-yearly charts released at the appropriate time intervals.
There is a two week trial available if you wish to test out NEoWave services. However, this trial is not free. Instead, it costs $39 for a 2-week period.
Is NEoWave a Scam?
Overall, NEoWave, although it seems to rely on the relatively objected neo wave analysis of markets, seems to be little more than a trading alert system set up by Glenn Neely that allows those who subscribe to the platform to mimic his own trades to some degree.
Although there is no indication that neo wave analysis is inaccurate, it is important to remember that any forecasts that are made through the use of neo wave analysis is at best a prediction which should be used in conjunction with a variety of other factors to confirm a trade that you would have placed in any case, or warn you that there may be something you are not seeing.
Additionally, something like neo wave analysis may not be able to take certain, non-technical factors into account, such as viral news articles.
NEoWave the trading and forecasting system - or the alert of Glenn Neely's recommended trade system, and neo wave prediction system, as one could also call it - is hard to recommend.
No matter how educated someone else may be, or how experienced they are with the markets, it is never a good idea to blindly follow someone else's trades.
Yes, there is an educational aspect, and if you wish to use this system to perhaps alert you to opportunities which you would look into further yourself, making use of those educational resources to better yourself as a trader overall, then it is a different story entirely.
However, it is also important to note that, if the trades are shorter term then you may have already missed the opportunity by the time that you finish your own research.
Remember, any form of trading is high risk. It is important that you never trade more than you are willing to lose, and to manage your risk responsibly.
After understanding Neo Wave and NEoWave, you can take a look at Reverse Jade Lizard and What is Profit Factor? which are coming soon.