What is cash data (Neowave data)?

One of the most important elementary issues that plays a key role in Elliott analysis is the type of data to be analyzed. Old available data include price bar, candlestick, and final price linear data. In Elliott orthodox, the price bar is usually used for Elliott analysis, but there are disadvantages to using the price bar. One of its major disadvantages is the lack of attention to the formation time of High and Low because the direction of the wave can easily change due to this. Please note the following:

If we assume that x to y is a clear three waves, we can come up with two scenarios:


1- This ascent is a movement in the form of a zigzag pattern and the market should fall after that.


2- This ascent can be the first three parts of an impulse pattern, and then we wait for the fourth and fifth parts of the pattern.


Now note again in the figure above that the last price bar is marked with a red box. This bar contains important information, but in this case, it is very vague because it is not clear whether High occurred first or Low.


If High occurs first and then Low, we can say that the market wants to decline and Scenario 1 is correct, but if Low occurs first and then High, we can say that the price tends to rise and Scenario 2 is correct.


As you can see, you can not make the right decision with this data.

The second drawback of bar data is that it is not possible to detect single waves with this type of data, although vague definitions are available in all orthodox references and there is no precise definition. In some books, a single wave is considered to be the distance between two fractals, in some it is the distance between two pivots, and in some, it is considered a combination. That fractals themselves have many exceptions.

Because of these problems, some people thought of using linear data for Elliott analysis (for single-wave transparency). Linear data can be obtained using the close of each candelabra, but the close-up linear data is the worst type of data for any kind of analysis because one point of the candle (close price at the moment of closing) can not represent the whole Fluctuations related to that candle. Therefore, close data at any time frame can not be suitable data for Elliott's analysis.

Some people use High or Low linear data instead of close, although it seems a little better than close data, this type of linear data is also incomplete and inefficient for Elliott analysis.

If we want to introduce the simplest type of linear data suitable for Elliott analysis, we can use High and Low averages instead of one point. Among the linear data mentioned above, the HL / 2 data is the most complete type of data and to some extent (not completely) can represent the corresponding Kendall fluctuations.


In Neowave, although HL / 2 is relatively good data that single waves can be easily detected, once an average point can not show all the fluctuations associated with the corresponding candle. The best type of data is data that, in addition to being linear, represents all price fluctuations and considers both High and Low.

Now, what is the CASH DATA?

CASH DATA is the data that Glenn Neely uses for Elliott analysis (considering High and Low at the same time) and is the most complete and comprehensive linear data available for Elliott analysis. An example of a data cache can be seen in the following figure:

How to plot cash data