Celebrity Dialogue is the brilliant index to the latest interviews and news with major celebrities from film, music, television and sports, as well as leading politicians, journalists and business people.

July 16th, 2010

In 1997 Tom Hennessy began a journey into the world of technical analysis for Forex, Stocks and Commodities. One thing lead to another and  sparked a discovery that Tom calls a "numerical gem".

CelebrityDialogue: How long have you been trading?
Tom: Since 1997

CelebrityDialogue: What is the New Elliot Wave Rule and how did you discover it?
Tom: Elliot Wave Analysis is a rule based form of Technical Analysis for financial instruments. The New Elliott Wave Rule is, as its name implies, a new rule. In this practice a rule must apply to the complete market cycle all the time, otherwise it is considered a guideline. The New Rule always applies.
I discovered it by observation and with the help of numerical relationships used as regulators. By this approach the consistent behavior could not be ignored. Then for four years I watched it in thousands of unique waves and it was indeed confirmed as always occuring.

CelebrityDialogue: Why did it surprise you so much as you got more involved?
Tom: Elliott Wave has been accepted as fully formed for over Seventy Years. To discover something new was a huge surprise. Aside from that, the very existence of such market precision which creates these intricate relationships in the waves is surprising in and of itself.

CelebrityDialogue: Why do you call it a “breakthrough”?

Tom: In the existing rules were allowances for uncertainty which paralyzed the analyst at key locations where an either this or that might occur. These evolved in the formation of the original rules because their was not sufficient granularity of data available back in the 1920's and 30's.

The most troublesome is known as an extension and it could appear in several possible places and basically spoil your current analysis. Extensions were an attempt to identify the unpredictable wave actions in certain places. What extensions really were all along is the very predictable action identified by The New Rule.

CelebrityDialogue: Why is it so precise for those seeking stocks, futures, commodities or forex trading systems?
Tom: The goal in trading is to locate exact turning points in price action, or most nearly so. Elliott Wave analysis is the flagship of technical analysis, needing nothing but price data. It's accuracy is already extremely high and its adherents are the truest of believers due to proof their own eyes have seen.
Anything which then removes those uncertain alternate scenarios will strengthen an already strong technical approach.


CelebrityDialogue: Did RN Elliot term the original wave rules as final to which no further analysis could be made?
Tom: No, he was a scientist and was himself aware of the limitations on progress caused by the restraints of closed-mindedness. He could not have done so unless he were to violate his own stated position which he placed directly beneath the the title of the book which introduced his marvelous discovery, titled, “Elliott Wave Principle”.
On that title page he placed the following:
"Warning:"
"When a newly discovered phenomenon is disclosed, self-appointed 'experts' immediately appear."
Elliott also said that, "waves do not make errors, but my version may be defective.”

CelebrityDialogue: Why did you decide to share this information with the trading world?
Tom: I felt that this information belongs to the trading world. Traders are forced to compete on an uneven playing field as it is. Let's make the game a bit more interesting.

CelebrityDialogue: Tell us about your book “The New Elliot Wave Rule”?
Tom: This is a description of R.N. Elliott's Unsolved Mystery. He had looked in vain to find the solution to the uncertainty of extensions. His writings indicate that the search was ongoing.
Then it lays out the way in which the extensions workaround was applied by Elliott. Finally it shows what is actually occuring in certain waves which becomes the New Rule and negates anything that was a workaround, vastly simplifying the wave ruleset.

CelebrityDialogue: Why did you decide not to sell this book but to distribute it as a free e-book?
Tom: The discovery is too important and should be distributed widely. Putting a price tag on it would slow that down and possibly taint the credibility.

CelebrityDialogue: How can people get hold of your e-book?
Tom: They may get it at my website which has the book download available. There is no email registration or other hoops to jump though. There is also a forum link there if you wish to join discussions about the New Rule.
Here is the link to use:
http://newelliottwaverule.org/elliott-wave-theory/

CelebrityDialogue: What is the STAR Trading System?
Tom: The Super Trades At Retrace or STAR or just Supertradesystem is a sytem developed after a few years of using the New Elliott Wave Rule. It is for Forex, Commodities and Futures trading. The same numerical relationships which guided the discovery of the new rule are employed in this system.
Basically that is a Key to Elliott Waves which the waves themselves form. That was the original discovery which has led to so many surprises for me.

CelebrityDialogue: How does it compare in performance to other software used for the same purpose?
Tom: The supertradesystem is not software but a manual trading system.  It is designed to get the benefits of the Elliott Wave Key without any wave counting. Entry is very early in a new trend and is distinguished by the signal as being a new trend rather than a continuation pullback.
Software cannot match the level of intricate precision in markets. Supertadesystem really does not match that precision either but it uses the Elliott Wave Key and the results so far since 2007 have been 100% accuracy within a +/- 1 pip signal variance which may be where data integrity plays a very small role.

CelebrityDialogue: Tom, thank you so much for your time. Good luck.