Elliott Wave Theory

Technical market timing strategy that predicts price movements on the basis of historical price wave patterns and their underlying psychological motives. Robert Prechter is a famous Elliott Wave theorist.

Elliott Wave Theory

A theory of price movements stating that all stocks move in waves roughly analogous to waves found in nature. The Elliott Wave Theory holds that stock prices move up a total of five times and down a total three times in succession; once the cycle is completed, it starts again. Unlike other, similar theories, the Elliott Wave Theory does not apply any particular time frame to its waves.

Elliott Wave Theory

A technical tool developed in the 1930s by R. N. Elliott for explaining stock price movements in terms of the sociological factors of investor optimism and pessimism. The theory holds that market movements occur in five waves in a given direction (up or down) followed by a correction of three waves in the opposite direction. According to the theory the wave patterns repeat themselves and can be used for forecasting market movements.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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Impulse Wave Pattern

References in periodicals archive

Elliott Wave Theory has been successfully used by top traders and investors to assist in market predictions since the 1930s (https://en.wikipedia.org/wiki/Elliott_wave_principle) when Ralph Nelson Elliott, published his theory of market behavior in the book "The Wave Principle", and 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."

Gaimin.io investigates incorporating human behavioral prediction into machine learning to optimize blockchain mining rewards

Technical analysis requires you to study charts on price averages, trading volumes and a multitude of technical market theories like Dow theory, Relative Strength Index, Elliott Wave theory and more.

Stocks or funds?

Now TA-1 is able to analyze waves and predicts the next extreme (high or low price) similar to Elliott Wave theory of recurrent stock market price structures.

Addaptron Software Releases Integrated Stock Market Tools

According to the FT, some fans of the Elliott wave theory reckon that the market peak in 2000 was the top of a five-wave pattern that began at the market's low point in 1932, meaning that a massive setback is imminent.

Equity investment: stock market investors have a wide range of forecasting tools to choose from, but even the most accurate method has its limitations

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