Elliott Waves In Motion
The Elliott Wave Principle
The Elliott Wave Principle is a detailed description of how markets behave. The description reveals that mass investor psychology swings from pessimism to optimism and back in a natural sequence,
reating specific patterns in price movement.
Each pattern has implications regarding the position of the market within its overall progression,
past, present and future.
The purpose of this publication and its associated services is to outline the progress of markets in terms of the Elliott Wave Principle and to educate interested parties in the successful application of the Elliott Wave Principle. This is probably the most comprehensive trading education on how to project high probability time and price targets based on Elliott Wave pattern structure.Under the Wave Principle, every market
decision is both produced by meaningful information and produces meaningful information. Each transaction, while at once an effect, enters the fabric of the market and, by communicating transactional
data to investors, joins the chain of causes of others' behavior. This feedback loop is governed by man's social nature, and since he has such a nature, the process generates forms.
As the forms are repetitive, they have predictive value. Sometimes the market appears to reflect outside conditions and events, but
at other times it is entirely detached from what most people assume are causal conditions. The reason is that the market has a law of its own. It is not propelled by the linear causality to which one becomes accustomed in the everyday experiences of life. Nor is the market the cyclically rhythmic
machine that some declare it to be. Nevertheless, its movement reflects a structured formal progression. That progression unfolds in waves. Waves are patterns of directional movement.
More specifically, a wave is any one
of the patterns that naturally occur under the Wave Principle.
A Power Law in the Stock Market
R.N. Elliott's depiction of the progress of the stock market unequivocally implied that while larger stock market reactions occur less often than small ones, they do not occur less often relative to the size
of advances that precede them, but in fact just about as often. In other words, Elliott implied that the stock market follows a power law. In 1995, Boston University physicists Gene Stanley and Rosario Mantegna
found that the fluctuations in the Standard & Poor's Composite index of the 500 highest capitalized stocks do follow a power law. This particular power law is a Levy stable law (named after a French mathematician
of the early 20th century), which produces a bell curve with "extended wings," indicating that far- from - normal fluctuations in terms of size occur a bit more often than they would if they followed a one-to-one
relationship to the duration of the data sample. Figure 2-16, from Mantegna and Stanley's article in Nature, demonstrates that the S&P's fluctuations are quite uniform throughout the time scale, from 1 minute to 1000 minutes. This finding
is consistant with the added wrinkle that large fluctuations , at least in this data example, occurred a bit more often than smaller ones relative to the time intervals between them. Levy laws also govern birds' flying
and landing patterns, drips from leaky faucets, the wanderings of ants, and fluctuations in cotton prices and heartbeats.Stanley is applying the behavioral similarities of complex systems to understanding landscape
formations, traffic patterns, Alzheimer's disease and the behavior of neutron stars. Like fractals, power laws suffuse nature.
(The Wave Principle of Human Social Behavior, p.44, Prechter 1999)
The Basic Pattern
Source: Elliottwave International
2015. ELLIOTT today. All Rights
Reserved. None of these stocks are buy or sell recommendations. There is a high degree of risk in trading. CLICK HERE FOR FULL RISK DISCLOSURE.
The Elliott Wave Principle is a detailed description of how markets behave. The description reveals that mass investor psychology swings from pessimism to optimism and back in a natural sequence, creating specific patterns in price movement.Each pattern has implications regarding the position of the market within its overall progression , past, present and future. The purpose of this publication and its associated services
is to outline the progress of markets in terms of the Elliott Wave Principle and to educate interested partiesin the successful application of the
Elliott Wave Principle. This is probably the most comprehensive trading education on how to project high probability time & price targets based
on Elliott Wave pattern structure.
Renowned financier Bernard Baruch, who was as close to markets as
a connection between economic trends and the herding impulse of
understood the crucial importance of that knowledge to a correct
All economic movements, by their very nature, are motivated by crowd
Without due recognition or crowd-thinking... our theories of economics leave much
to be desired. ...
It has always seemed to me that the periodic madnesses which afflict
mankind must reflect some deeply rooted trait in human nature - a trait akin to the
that motivates the migration of birds or the rush of lemmings to the
It is a force wholly implapable...yet , knowledge of it is necessary to right judgements
on passing events.
(The Wave Principle of Human Social
Behavior, 1999 Robert Prechter jr.)
What is Socionomics?
Imagine a modern, ground-breaking theory, which could link all human social behavior -- cultural, economic,
political, and more --
into a single, elegant and unifying framework.
By Editorial Staff
Tue, 16 Dec 2014 16:00:00 ET
Have you ever noticed how economists, politicians, and business
leaders consistently fail to foresee major turning points in
With all of today’s science and technology, why
are we still unable to anticipate wars, economic depressions,
financial bubbles and
even fashion trends?
Conventional models for forecasting economic and social trends
simply do not work because they rely on a fatally flawed
about how people behave. Unfortunately, “fatal
assumptions” are common throughout scientific history, and
they often languish for far
too long. New ideas can blossom only
after wrong assumptions
are discarded. When evidence refutes long-held assumptions,
truth has a chance. A new theory emerges, and the old
of special cases and exceptions fade away. A
proper perspective enhances our ability to predict and prepare
for the future.
The fatal flaw that economics and broader social science fields
rely upon is external causality, or the notion that major events
primary influence and shaper of history. This model is
just as attractive --and just as mistaken -- as the notion of
the four elements,
the four humors or a geocentric
Yet even in the face of contrary
evidence, people find it hard to divest themselves of deeply
Now imagine a modern, ground-breaking theory, which could link
all human social behavior -- cultural, economic, political, and
into a single, elegant and unifying framework. Well,
such a framework is here, and it's called socionomics.
Socionomics succeeds by turning the assumption of external
causality on its head,and it instead recognizes internal
in groups share an unconscious collective
disposition that is endogenously regulated. This shared social
mood steers the actions that
groups take and therefore the
events that unfold across time to create history. In other
words, psychology precedes actions, not vice-versa. Furthermore,
social mood’s fluctuations are patterned, which makes it
possible to forecast the type and character of social and
economic events. Socionomic causality is the engine of history.
The power of socionomics is radical and unprecedented. Conventional social theory would have had you trapped in Germany when the
Nazis took over; socionomics tells
you when the political environment is likely to turn dangerously unstable.
Conventional economics would
have you lose everything in a major financial crash; socionomics
tells you when and where to expect them.
marches on, the evidence continues to mount in favor of the