Elliott Wave Principle Key To Market Behavior


  • Format: PDF
  • Pages: 256
  • Published Date: 1978


Elliott Wave Principle Key To Market Behavior A Great Classic for Three Decades: Now In Its 10th Edition, Consider What This “Definitive Text” Offers You Take a moment to look over your books about investing. The book is essential reading for you to receive the most from what the Theorist says every month — in fact, all of EWI’s publications continually reference this book.


In The Elliott Wave Principle -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.

In the 1930s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns. The patterns he discerned are repetitive in form but not necessarily in time or amplitude. Elliott isolated five such patterns, or “waves,” that recur in market price data. He named, defined and illustrated these patterns and their variations. He then described how they link together to form larger versions of themselves, how they in turn link to form the same patterns of the next larger size, and so on, producing a structured progression. He called this phenomenon The 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 display the Wave Principle, but it is most popularly used in the stock market. Truly, however, the stock market is far more significant to the human condition than it appears to casual observers and even to those who make their living by it. 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.


  • The Broad Concept
  • Guidelines of Wave Formation
  • Historical and Mathematical Background of the Wave Principle
  • Ratio Analysis and Fibonacci Time Sequences
  • Long Term Waves and an Up-to-Date Composite
  • Stocks and Commodities
  • Other Approaches to the Stock Market and Their Relationship to the Wave Principle
  • Elliott Speaks