Elliott Wave Theory

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.
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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.
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.
In 1939, Elliott detailed the Elliott Wave Theory, which states that stock prices are governed by cycles founded upon the <a href="http://www.
According to the Elliott Wave Theory, stock prices tend to move in a predetermined number of waves consistent with the Fibonacci series.
Elliott Wave theory ascribes names to the waves in order of descending size:
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.
In that context, the Fibonacci cycles are an appropriate tool for the Elliott Wave Theory, where they can be used for local tops and bottoms of the various waves of a cycle or the Dow/Edwards-McGee Theory (details are provided in [4] and [5]) where they can give important confirmation of patterns which predict reversals or breakouts, or of doubtful consolidation patterns.
The basis of the Elliott Wave Theory has been developed from the observation that rhythmic regularity has been observed in the stock market over an eighty year period.
The longest cycle in the Elliott Wave Theory is called the Grand Super-cycle.
The company presents live education seminars and training focused on Elliott wave theory for individuals and organizations in major Brazilian markets.