Article: The Center for Elliott Wave Analysis. (Elliott Wave Analyser software)(1996 Guide to Computerized Trading)(Evaluation)

The Elliott Wave Principle in principle

In the 1930s, Ralph Nelson Elliott made an amazing discovery.

He found that the emotional state of a crowd of traders moves in recognizable patterns. These patterns are reflected in the price movement of traded securities. The larger the crowd of traders, the more predictable the patterns.

Using the Elliott Wave Principle, a detailed analysis of market action will show the underlying swings from pessimism to optimism and back again that occur in mass trader psychology.

Elliott spent many years documenting and quantifying these patterns into a very strict and systematic set of rules and guidelines. Each ...

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