Tag: elliott wave

The elliott wave theory is predominantly at work in the financial markets. The ever changing psychology of the investors is usually seen as patterns in the form of price movements. The Elliott Wave theory, is in effect a principle that was drafted by Ralph Nelson Elliott. The Elliott Wave theory is a princple that details how certain groups of people tend to behave. The Elliott Wave Theory suggests the mass psychological swings from pessimism to optimism and back as a form of a natural sequence, thus creating very specific and measurable patterns. The elliott wave theory is based on the fact that by identify the repeating natural patterns in prices, from a financial aspect, investors can figure out where they are in those repeating patterns today and can therefore predict the future ...

July 28, 2011 would have been Ralph N. Elliott's 140th birthday, so it is only fitting to post an excerpt from his essay, "The Basis of the Wave Principle." There's nothing like reading for yourself what the discoverer of the Wave Principle, later to be known as Eliott Wave principle wrote about how the principle works. The following passage is an excerpt from the book, R.N. Elliott's Masterworks. This is the definitive collection that Robert Prechter collected and published in 1994. Civilization rests upon change. This change is cyclical in origin and characteristics. A rhythmic series of extreme changes constitutes a cycle. When a cycle has been completed, another cycle is started. The rhythm of the new cycle will be the same as that of the previous cycle, although the extent and dura...