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The Wave Principle


Prechter is known for a long career in the development and application of the Wave Principle, an empirically derived model of financial pricing identified and described by Ralph Nelson Elliott in the 1930s.

According to this model, financial market prices--especially aggregate stock market prices, which are particularly responsive to changes in social mood--develop in a series of five "waves" in the direction of the next larger trend and in a series of three waves (or combination thereof) when moving contrary to the next larger trend, thereby producing a patterned, hierarchical fractal.

This 5/3 construction leads naturally and efficiently to fluctuation at all scales, to trending at each "degree" of the hierarchy and to a tendency of price movements to form Fibonacci relationships, These waves take certain described forms called Elliott waves. This model is compatible with socionomics and Prechter's theory of finance.

Prechter has written/edited a dozen books on the Wave Principle, including the original works of R.N. Elliott and his successors.

Read and see for more insight the three opportunities I have left here for you to discover "The Wave Principle"

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