Elliott Wave Principle
Key To Market Behavior
By: Robert Prechter & A. J. Frost
ISBN: 9780471987307
Format: Hardcover
Publisher: John Wiley & Son Ltd
The Wave Principle demonstrates that the market is governed by humanity's social nature. Human nature is repetitive and has form, giving crowd activity predictive value write co-authors Robert R. Prechter and A. J. Frost in their essential and definitive textbook on the subject, the Elliott Wave Principle: Key To Market Behavior. The book provides the basics of wave analysis, as well as the more mathematical framework for understanding wave movements and degrees.
Robert Prechter: Co-author (photo left)
The authors provide the basic tenets of using and understanding waves, and how to identify all thirteen waves that appear in the various markets. They also demonstrate how to identify and count waves so they can be properly applied to the reader's understanding of the market movements. More information on the mathematical basis of the wave principle as it appears in mathematics, art, and science. There is also a helpful historical context for understanding waves over the longer course of human history. The book is a powerful textbook for anyone wanting to understand waves more clearly.
Ralph Nelson Elliott (photo left)
Wave Principle discoverer R. N. Elliott wrote that the fractal nature of the charts, recording the same basic patterns, reflected those found in nature. Just as a seashore forms the same outlines whether viewed from the ground, the air, or even outer space, so too do the fractal waves of the stock market. Whether examining the market on a yearly, weekly, or hourly basis, the waves on a stock market chart resemble one another.
Elliott's most powerful insight was that markets move as a result of human thoughts and actions. He found that economic busts follow great boom times, and always in very predictable patterns, based on human emotions. Instead of the supposedly rational markets described in textbooks, R. N. Elliott discovered that the market moved in the direction of the prevailing social mood. Emotion and the herd mentality of the crowd moves the market, and not the much discussed market fundamentals.
For me, the power of the book is its in depth approach to the wave principle. The structure of the book helps a novice, or experienced wave principle user, to better understand the underlying principles behind the actions of the market. The emphasis on comprehending the human emotional influence of the market is crucial to the thesis of the book. At the same time, the book goes well beyond the theoretical boundaries. It delves deeply into the mathematical values involved in the market changes governing the wave activity. The section on the Fibonacci mathematical basis of wave movement limits is very intriguing; as are chapters describing the established rules for developing a correct wave count.
I highly recommend the must read book Elliott Wave Principle: Key To Market Behavior by Robert R. Prechter and A. J. Frost if you are serious about understanding the real underlying principles that influence market movement. Once you develop a competence at counting waves, and taking human emotions into account, you will have a more firm grasp of the markets than ever before.
Read the landmark book Elliott Wave Principle: Key To Market Behavior by Robert R. Prechter and A. J. Frost and start applying the power of the Wave Principle to your investment plans today. This book is, without a doubt, the definitive textbook on the subject of the Wave Principle and is a must read for any serious investor.
