What is Socionomics? |
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The Elliott Wave Principle
The Wave Principle is Ralph Nelson Elliott’s discovery that
social, or crowd, behavior trends and reverses in recognizable patterns.
Using stock market data as his main research tool, Elliott isolated thirteen
patterns of movement, or “waves,” that recur in market price data. He
named, defined and illustrated those patterns. He then described how these
structures link together to form larger versions of those same patterns,
how those in turn link to form identical patterns of the next larger size,
and so on. In a nutshell, then, the Wave Principle is a catalog of price
patterns and an explanation of where these forms are likely to occur in
the overall path of market development.
Until a few years ago, the idea that market movements are patterned was
highly controversial, but recent scientific discoveries have established
that pattern formation is a fundamental characteristic of complex systems,
which include financial markets.
 Continue
reading this capsule summary of the Wave Principle.
Or,
learn about how the human social experience forms a fractal.
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