Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
0Activity
0 of .
Results for:
No results containing your search query
P. 1
Untitled

Untitled

Ratings: (0)|Views: 0 |Likes:
Published by somebody314

More info:

Published by: somebody314 on Apr 03, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as TXT, PDF, TXT or read online from Scribd
See more
See less

04/03/2011

pdf

text

original

 
Lesson1:IntroductiontotheWavePrincipleInTheElliottWavePrincipleâ

ACriticalAppraisal,HamiltonBoltonmadethisopeningstatement:Aswehaveadvancedthroughsomeofthemostunpredictableeconomicclimateimaginable,coveringdepression,majorwar,andpostwarreconstructionandboom,IhavenotedhowwellElliott'sWavePrinciplehasfittedintothefactsoflifeastheyhavedeveloped,andhaveaccordinglygainedmoreconfidencethatthisPrinciplehasagoodquotientofbasicvalue."TheWavePrinciple"isRalphNelsonElliott'sdiscoverythatsocial,orcrowd,behaviortrendsandreversesinrecognizablepatterns.Usingstockmarketdataashismainresearchtool,Elliottdiscoveredthattheever-changingpathofstockmarketpricesrevealsastructuraldesignthatinturnreflectsabasicharmonyfoundinnature.Fromthisdiscovery,hedevelopedarationalsystemofmarketanalysis.Elliottisolatedthirteenpatternsofmovement,or"waves,"thatrecurinmarketpricedataandarerepetitiveinform,butarenotnecessarilyrepetitiveintimeoramplitude.Henamed,definedandillustratedthepatterns.Hethendescribedhowthesestructureslinktogethertoformlargerversionsofthosesamepatterns,howtheyinturnlinktoformidenticalpatternsofthenextlargersize,andsoon.Inanutshell,then,theWavePrincipleisacatalogofpricepatternsandanexplanationofwheretheseformsarelikelytooccurintheoverallpathofmarketdevelopment.Elliott'sdescriptionsconstituteasetofempiricallyderivedrulesandguidelinesforinterpretingmarketaction.ElliottclaimedpredictivevalueforTheWavePrinciple,whichnowbearsthename,"TheElliottWavePrinciple."Althoughitisthebestforecastingtoolinexistence,theWavePrincipleisnotprimarilyaforecastingtool;itisadetaileddescriptionofhowmarketsbehave.Nevertheless,thatdescriptiondoesimpartanimmenseamountofknowledgeaboutthemarket'spositionwithinthebehavioralcontinuumandthereforeaboutitsprobableensuingpath.TheprimaryvalueoftheWavePrincipleisthatitprovidesacontextformarketanalysis.Thiscontextprovidesbothabasisfordisciplinedthinkingandaperspectiveonthemarket'sgeneralpositionandoutlook.Attimes,itsaccuracyinidentifying,andevenanticipating,changesindirectionisalmostunbelievable.ManyareasofmasshumanactivityfollowtheWavePrinciple,butthestockmarketiswhereitismostpopularlyapplied.Indeed,thestockmarketconsideredaloneisfarmoreimportantthanitseemstocasualobservers.Thelevelofaggregatestockpricesisadirectandimmediatemeasureofthepopularvaluationofman'stotalproductivecapability.Thatthisvaluationhasformisafactofprofoundimplicationsthatwillultimatelyrevolutionizethesocialsciences.That,however,isadiscussionforanothertime.R.N.Elliott'sgeniusconsistedofawonderfullydisciplinedmentalprocess,suitedtostudyingchartsoftheDowJonesIndustrialAverageanditspredecessorswithsuchthoroughnessandprecisionthathecouldconstructanetworkofprinciplesthatcoveredallmarketactionknowntohimuptothemid-1940s.Atthattime,withtheDowinthe100s,ElliottpredictedagreatbullmarketforthenextseveraldecadesthatwouldexceedallexpectationsatatimewhenmostinvestorsfeltitimpossiblethattheDowcouldevenbetterits1929peak.Asweshallsee,phenomenalstockmarketforecasts,someofpinpointaccuracyyearsinadvance,haveaccompaniedthehistoryoftheapplicationoftheElliottWaveapproach.Elliotthadtheoriesregardingtheoriginandmeaningofthepatternshediscovered,whichwewillpresentandexpanduponinLessons16-19.Untilthen,sufficeittosaythatthepatternsdescribedinLessons1-15havestoodthetestoftime.Oftenonewillhearseveraldifferentinterpretationsofthemarket'sElliottWavestatus,especiallywhencursory,off-the-cuffstudiesoftheaveragesaremadebylatterdayexperts.However,mostuncertaintiescanbeavoidedbykeepingchartsonbotharithmeticandsemilogarithmicscaleandbytakingcaretofollowtherulesandguidelinesaslaiddowninthiscourse.WelcometotheworldofElliott.BASICTENETSUndertheWavePrinciple,everymarketdecisionisbothproducedbymeaningfuli

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->