Elliot Wave Theory
The theory proposed by Ralph Nelson Elliot in the 1930s, says the stock market moves up and down in a series of predictable waves. The theory suggests that these waves can be predicted by observation and study to find the pattern. These predictable waves are said to move up in a series of five waves and down in a series of three waves. Despite saying that these waves are predictable, Elliot does not put time requirements on how long it takes for the market to complete a given wave.
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