[Article] Does the Wave Principle Subsume All Valid Technical “Chart Patterns”? Part III
Part III of Robert Prechter’s “Does the Wave Principle Subsume All Valid Technical ‘Chart Patterns’?”
Part III of Robert Prechter’s “Does the Wave Principle Subsume All Valid Technical ‘Chart Patterns’?”
This paper addresses the question of whether the Wave Principle is a set of market patterns separate from those asserted in other forms of “technical” chart analysis.
The underlying idea of causality that the Standard Social Science Model simplistically borrows from physics that external social actions cause reactive changes in social mood is inappropriate for understanding the genesis of financial market action.
In the world of physics, action is followed by reaction. Most financial analysts, economists, historians, sociologists and futurists believe that society works the same way.
This essay by Robert R. Prechter, Jr. originally appeared in: The Colours of Infinity. Clarke, Arthur C., et al (2004). UK: Clearpress, pp. 128-139 View PDF R.N. Elliott’s Discovery In the 1930s, Ralph Nelson Elliott discovered that aggregate stock market prices trend and reverse in recognizable patterns. In a […]
Since plotting an aspect of a stylized tree produces a stylized Elliott wave, we may reiterate the suspicion that plotting aspects of robust fractals in the form of arbora in nature is likely to produce robust fractals called Elliott waves, with all the natural order and variation that we have come to know from their expressions in financial markets.
Since the Great Depression, we have had immense improvements in science and technology. Given seven additional decades of data collection and progress in econometric techniques, one might presume that the forecasting tools of macroeconomics have become vastly more effective than their predecessors of 1929. Yet as recently as 1988, some leading economists went on the record about the profession’s lack of progress.
Social clashes take myriad forms, but one bellwether rift that has an almost perfect record of erupting into open hostility right at the onset of major downturns is in the Mideast.
Can a basket of equities backed by a broad cross-section of commercial fantasy images developed over the course of a bull market reflect the end of that bull market ahead of other major indexes?