The Wave Principle
is a detailed description of how groups of people behave. It reveals that
mass psychology swings from pessimism to optimism and back in a natural
sequence, creating specific and measurable patterns.
One of the easiest
places to see this phenomenon at work is in the financial markets, where
changing investor psychology is recorded in the form of price movements.
The idea is that if you can identify repeating patterns in prices, and
figure out where in those repeating patterns we are today, then you can
predict where we are going in the future.
The Elliott Wave
Principle is named for its discoverer, Ralph Nelson Elliott. Mr. Elliott
completed the bulk of his work on the Principle in the 1930s and 1940s.
Today, the Principle
is one of the most widely accepted methods of market analysis in the
world.
The purpose of
Elliott Wave International is to outline the progress of financial markets
in terms of the Elliott Wave Principle, and to educate interested people
in the Principle's successful application.
