[The Wave Principle] [By: Elliott, Ralph Nelson] [August, 2012]

by R.N. Elliott

The Elliott Wave Principle is a form of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott, a professional accountant, discovered the underlying social principles and developed the analytical tools. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves, or simply waves. Elliott published his theory of market behavior in this book "The Wave Principle". Elliott stated that "because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable."

Genres: Classics

Paperback

First published August 2, 2012

About the author

Ralph Nelson Elliott (28 July 1871 – 15 January 1948) was an American accountant and author whose study of stock market data led him to develop the Wave Principle, a description of the cyclical nature of trader psychology and a form of technical analysis. It identifies trends and reversals in financial markets. These cyclical patterns in price movements are known among practitioners of the method as Elliott waves.

Reviews

[Terry Grennon · Rating 4 out of 5]

This is the book Prechter expanded on to build out his legendary approach to technical market analysis. The Elliott Wave Principle breaks down stock market cycles and the ties to social mood, highs, and lows in stock prices and other aggregate factors. Ralph Nelson Elliott, an expert bookkeeper, found that fundamental social mood was built into complex systems. He detailed that market prices unfold in patterns and can be seen via Elliott waves. His hypothesis of market behavior is dependent upon a view that rhythm, mood, and stock prices can be analyzed with calculations on the wave pattern structure to develop forecasts. If your a fan of Elliott Wave analysis, then this will give you an impressive background on the lengths R.N. went to develop his analysis. But don't expect any tips on trading or asset management.

[Shaili · Rating 4 out of 5]

It's not much of a book in size, looks more like the first paper published on Elliott Wave Theory. It's a classic, quite basic, authored by our very own R. N. Elliott. It's helpful to understand the most basic concepts and instill curiosity of new ones.

That being said, for someone who wishes to understand the Elliott Wave Theory for trading purposes, it's not necessary you read this book.

[coolwind · Rating 5 out of 5]

Classic, good and useful.