The Elliott Wave Theory: Logic and Magic in t...

The Elliott Wave Theory: Logic and Magic in the Numbers

Author Name : Dr. Sunena

DOI: https://doi.org/10.56025/IJARESM.2022.109132

ABSTRACT

The Elliott Wave Principle was propounded by R. N. Elliott in The Financial World in 939. It is a method of market analysis for prediction and forecasting security price movements based on the theory that “history repeats itself” i.e., market pattern repeats and unfolds. These rhythmic regularities are used to identify social and herd mentality and behavioural trends present in the financial market and thus recognize upcoming reversal trends. The fractal form of the waves is consistent i.e., posse the feature of “self-similarity” and follows Fibonacci ratios, which is one of the major guidelines of their detection. This theory also aids the traders in making profitable trading decisions and strategies by assisting and making prediction of the future trends easier and more reliable.

Keywords : investors, forecasting, price ,movements ,wave pattern, technical analysis