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Elliott wave
Ralph Elliott was an accountant who lived from 1871 to 1948 and who is remembered by technical analysts for his 'wave theory' of stock markets.The tenets of this theory were:That stock markets go up over time.That the manner in which they advance and decline follows a pattern of 8 waves. There are 5 waves which take the market up and three waves which take it down, but at the end of the 8 waves the market will be higher than it was at the beginning.If you know where the market is within the wave cycle, you can predict the movement of prices, and so make money.As with all technical analysis, the pattern of price movement is determined by investor psychology. Investor optimism builds, becomes euphoric, bursts, then recovers.
Similar MatchesElliott Wave TheoryElliott 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.
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