Page 13 - Futures Money Machine-Study Session #5
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Beyond The Basics
Elliott Wave Overview …
The “Elliott Wave” principle is a form of technical analysis that investors
use to forecast trends in the financial markets and other collective
activities. Discovered by Ralph Nelson Elliott in the 1930’s from
“Observation Analysis”. He published “The Wave Principle” in 1938.
“The Wave Principle” states that collective investor psychology (or crowd
psychology) moves from optimism to pessimism and back again.
These swings create patterns, as evidenced in the price movements of a
market at every degree of trend. Elliott's model says that market prices
alternate between five waves and three waves at all degrees of trend. It is
also known as the “Wave Principle”.
