Elliott Wave Principle

Key to Market Behaviour

Frost, Alfred J. / Prechter, Robert R.

1. Edition November 2000
248 Pages, Softcover
Wiley & Sons Ltd

Short Description

Developed by Ralph Elliott in the 1940s, the Elliott Wave Principle described the movement of stock market prices as forming recognizable wave patterns, reflecting a stock's inevitable highs and lows. Robert Prechter re-introduced the method to a new generation of market traders in 1978, which clearly detailed how the theory was applied and it quickly became a cult classic. The twentieth anniversary edition of the cornerstone book explains why the Elliott Wave principle continues to be a such a reliable forecasting tool.

ISBN: 978-0-471-98849-6

John Wiley & Sons

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"This is a definitive, excellent book on Elliott, and I recommend it to all who have an interest in the Wave Principle." Richard Russell, Dow Theory Letters
"Gold and Silver Today wholeheartedly endorses this book. It is the definitive work on a scientific wave theory of human experience. If you are interested in technical or wave analysis, it should be required reading." Gold & Silver Today
"This book is extremely well done. It is clear, brief and bold....by far the most useful and comprehensive for both the beginner and the veteran." William Dilanni, Wellington Mgmt. Co.
"An outstanding job...I don't think a better basic handbook of Elliott Wave theory could be written." Donald J. Hoppe, Business and Investment Analysis
"...A top-drawer reference for serious technical analysts....all the nuts and bolts necessary to do their own Elliott Wave assembly." Futures Magazine
"Chapter Three is the best description of Fibonacci numbers we've seen in print and that alone is worth the price of the book." Janes Dines, The Dines Letter
"In a third of a lifetime in this business, this was the first time I really understood Elliott, and this is certainly the first book on Elliott that I could recommend. All the methods that Prechter has used so successfully are fully described in this book." The Professional Investor
"Elliott Wave Principle is such an important, fascinating, even mind-bending work, we are convinced that it should be read by and and every serious student of the market, be they fundamentalist or technician, dealing in stocks, bonds or commodities." Market Decisions
"Even allowing for minor stumbles, that 1978 prediction must go down as the most remarkable stick market prediction of all time." James W. Cowan, Monitor Money Review
Recipient of the Technical Analysis Association's Award of Excellence

Part I: Elliott Theory
The Broad Concept
Guidelines of Wave Formation
Historical and Mathematical Background of the Wave Principle
Part II: Elliott Applied
Ratio Analysis and Fibonacci Time Sequences
Long Term Waves and an Up-to-Date Composite
Stocks and Commodities
Other Approaches to the Stock Market and Their Relationship to the Wave Principle
Elliott Speaks
Appendix: Long Term Forecast Update, 1982 - 1983
Publisher's Postscript

Robert R. Prechter. Jr. is author of several books on the markets and editor of two monthly forecasting publications, The Elliott Wave Theorist and Global Market Perspective. The Hulbert rating service reports that The Theorist exceeded the performance of the Wilshire 5000 over 131/2 year period ending December 31, 1993, while being exposed to market risk only 50% of the time. EWT has won Hard Money Digest's "Award of Excellence" twice and Timer Digest's "Timer of the Year" twice, the only newsletter to do so. In 1984, Mr Prechter set an all time record in the United States Trading Championship by returning 444.4% in a monitored real-money options account in the four month contest period. In December 1989, Financial News Network named him "Guru of the Decade". In 1990-1991, Mr Prechter serves as President of the Market Technicians Association in its twenty-first year.
Mr Prechter's latest venture is Elliott Wave International, which provides monthly and intraday analysis on stock markets, currencies, interest rates, commodities and social trends to institutional and private investors around the world.
Mr. Prechter attended Yale University on a full scholarship and graduated in 1971 with a degree in psychology. He began his career as a Technical Market Specialist with the Merrill Lynch Market Analysis Department in New York, where his original work with the Wave Principle led to a small but loyal following, introduction to A.J. Frost and ultimately this book.
A.J. Frost C.F.A., a graduate of Queen's University, Kingston, Ontario, started his career as a legal accountant. He achieved his objective on being admitted to the Ontario Institute of Chartered Accountants in 1934 and on his call to the Ontario Bar in 1937. In 1959, he was elected a fellow in the Institute for distinguished service to the accountancy profession. He served as Chairman of the National Capital commissions (Canada) for two years and later sat on the bench as a member of the Tax Appeal Board, Tax Review Board and Anti-Inflation Appeal tribunal. He has handed down many decisions in the field of income tax law. During his career, Mr Frost served on two university councils and the boards of several Canadian corporations.
In 1960, Mr. Frost became a partner of the late Hamilton Bolton, who introduced him ot the Elliott Wave Principle. After Bolton's death in 1967, he wrote two Elliott Wave Supplements for the firm of Bolton-Tremblay, the editors of the Bank Credit Analyst. In 1977, Mr Frost delivered a speech on the Elliott Wave Principle before the Market Technicians Associations. There he met Mr. prechter, whom he found to have remarkably compatible ideas despite their separation by two generations and national boundary. Mr. Frost provided weekly market commentary on Financial New Network and was one of the most frequently requested speakers for meetings of the Canadian Society of Technical Analysts.