Elliott Waves In Motion

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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

 

 

 

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Copyright ©   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.

 

 

 

 

Socionomics

 

 

 

 

 

 

 

 

 

Thinking Socionomically

Renowned financier Bernard Baruch, who was as close to markets as anyone, saw 
a connection between economic trends and the herding impulse of animals. 
He also understood the crucial importance of that knowledge to a correct analysis:

All economic movements, by their very nature, are motivated by crowd psychology.
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 
force that motivates the migration of birds or the rush of lemmings to the sea... 

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 history? 
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 assumption
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 theory's plethora 
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 are the
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 universe. 

Yet even in the face of contrary evidence, people find it hard to divest themselves of deeply ingrained notions.

Now 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. 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 causality. People
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.
As research marches on, the evidence continues to mount in favor of the socionomic insight.

 

 

 

Socionomics



The Wave Principle of Human Social Behavior

 

 

Scandals >>>
 
Herding >>>

 

Social Visioning >>>
 
Sudden Wave of Violence >>>
 
Woman Gain Dominance In Bear Markets >>>

 

Cultural Trends >>>

 
Financial Man >>>
 
Die Wissenschaft >>>

 



 

 

 

 

 

 

 

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Copyright ©  2014 - 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.