Elliott Wave Principle: Key to Market Behavior [Hardcover]

A. J. Frost (Author), Robert R. Prechter Jr. (Author)

Book Description

Publication Date: March 1998

Developed by Ralph Nelson Elliott in the 1930s and '40s, the Elliott Wave Principle is a powerful analytical tool for forecasting stock market behavior. The basic concept behind the Wave Principle is that stock market prices rise and fall in discernible patterns and that those patterns can be linked together into waves.

In the years since it was first published, this classic guide to the Elliott Wave Principle has acquired a cult status among technical analysts, worldwide. And with each new edition, the authors have refined and enhanced the principle, while retaining all the predictions from past editions.

The 20th Anniversay Edition includes a special foreword and enhanced text. It’s the final revision of a classic.

"Elliott Wave Principle is simply the best description and validation of a concept which by all rights should be revolutionizing the scientific study of history and sociology." –JWG, New York

"Elliott Wave Principle is such an important, fascinating, even mind-bending work, we are convinced that is should be read by any and every serious student of the market, be they fundamentalist or technician, dealing in stocks, bonds or commodities." –Market Decision$

"Even allowing for minor stumbles, that 1978 prediction must go down as the most remarkable stock market prediction of all time." –James W. Cowan, Monitor Money Review

"Elliott Wave Principle is the greatest work of any kind, anywhere. It has helped me abandon speculative stock tips and stockbroker newsletter recommendations for my own predictions based on the simple wave theory." –J.V.

"I have just received my copy of Elliott Wave Principle and find it to be unquestionably the best book and explanation regarding the works of Elliott that I’ve ever seen." –J.B.B.

"I have recently read and reread Elliott Wave Principle. I was impressed with the research and especially thrilled with the excitement of coming into contact with a truly original concept." –M.F.

Product Details

• Hardcover: 244 pages
• Publisher: New Classics Library; 20th Anniversary edition (March 1998)
• Language: English
• ISBN-10: 0932750435
• ISBN-13: 978-0932750433
• Product Dimensions: 9.3 x 6.2 x 0.9 inches
• Shipping Weight: 1.2 pounds
• Average Customer Review: 3.3 out of 5 stars  See all reviews (17 customer reviews)
• Amazon Best Sellers Rank: #345,442 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

80 of 85 people found the following review helpful:

5.0 out of 5 stars Not a Get-Rich-Quick way of investing, October 25, 2000

By 

Joseph F. Specht "Happy Parent" (Lockport, IL USA) - See all my reviews

This review is from: Elliott Wave Principle: Key to Market Behavior (Hardcover)

Obviouosly people either love this book (and this concept) or they hate it. I happen to love it and believe that the wave principle answers many questions about market behavior, mass social psychology and even world history. To me, the book does as much in constructing the tapestry of human history as it does in expaining stock market movements.

Anyone expecting to use this book to day-trade and get rich quick is likely to be dissappointed - no one but true experts should be day trading anyway and even many "experts" should probably find other lines of work.

What this book will do is begin to provide an understanding of markets as a function of human nature as well as to provide a very good long term perspective of all of human history. This book provides insight to explain everything from minor stock market corrections to protracted economic depressions to major world wars and even, believe it or not, the dark ages.

Many are critical of Prechter's (obviously wrong) bearish opinion through the 1990s, and rightfully so. On the other hand, if his hypothesis is correct (and I think it is) that we are approaching the end of a bull market that started in 1789, then calling the end of that bull market correctly within even ten years is a spectacular feat. (Yes, I said a bull market that started in "Seventeen Eighty-Nine". Read the book and begin to understand why the USA was born through revolution at the end of the 1700s.)

Let me also point out that Prechter was about the only voice calling for a tremendous bull market starting in 1982. At that time, the mainstream media was pronouncing equities "dead" and you could hardly give away a share of stock free with a bowl of soup. Now that everyone and their brother wants to own stock, of course anyone with a bearish opinion is treated as an outcast.

I think people who have such a low opinion of this book either have minds that are way too closed or, frankly, do not have the ability to understand it. (While I don't think the book is extremely difficult, it is not exactly a first grade reader either.)

Anyone who is in the stock market or considering being in it should consider this book obligatory reading. As unpopular as this viewpoint may be now, we are heading for a very serious bear market and anyone who removes most (or all) of their funds from the stock market will look back ten years from now and be very glad they did.

Prechter's Elliott Wave International has a web site at elliottwave.com which I highly recommend. The site provides additional information which may make a stronger case for the validity and importance of this information than I have here.

41 of 45 people found the following review helpful:

5.0 out of 5 stars elliott wave principle :key to market behavior, August 5, 2000

By 

john voulgaris (melbourne,victoria australia) - See all my reviews

This review is from: Elliott Wave Principle: Key to Market Behavior (Hardcover)

This book is a must for anyone who believes that there is method to the stock market madness.I am a pharmacist with a scientific and mathematical background.This book explains the stock market in terms of elliott waves,in a similar way that writing is explainned by the alphabet.In essence it explains the relationship between the everyday variations and its relation to what is happenning today.It explains why the DOW is 10750 today and what the most likely scenario is for the next week,month,year.I like to get into it in a complicated way ,but it is not necessary to do so.Learning the alphabet(elliott wave pattern) is enough to allow anyone who can read and write to note whre the market is today and where it is likely to go.While the most obvious use is for stock market investing the education perhaps is even more important. The elliott wave theory says that all moves consist of 8 waves given symbols 1,2,3,4,5,a,b,c,.In a bull market 1,3,5 and b are moves upward and 2 4 a & c are downward moves.Therefore if you can workout which wave your stock is in you can predict its next move.Each 8 wave move is followed by another 8 wave move and every move is interelated.The dow appears to be in the start of wave a with a long and sharp decline in the near future. I have read the book twice and I need to read it again as it makes more sense each time.

27 of 29 people found the following review helpful:

5.0 out of 5 stars The bible of Elliott Wave theory, August 10, 2000

By 

Eugene Morrow (Sydney, Australia) - See all my reviews

This review is from: Elliott Wave Principle: Key to Market Behavior (Hardcover)

Ever heard how Fibonacci mathematics is everywhere - in the shapes of our bodies, in art, in animals and in nature? Everyone knows that, but did you realise that Fibonacci mathematics is just as common in Financial Markets? That's not so strange when you think about it - since humans and nature have so much Fibonacci mathematics then it makes sense that it will show up in markets as well.

Question: does you favourtie Financial guru talk about Fibonacci mathematics very often? This one does - Prechter and Frost's book Elliott Wave Principle.

Their book is about a method of analysis invented by R.N. Elliott during the 1930s. Unlike most other methods of analysing financial markets this one is full of Fibonacci mathematics, and it makes markets seem as natural as a shower of rain or a summer breeze.

This is the book that shows the connection between great works of art, the chaos of life on earth and the strange moods of financial markets.

This book is not for everyone - you have to be ready to challenge the mainstream ideas about financial markets. It is like a gigantic puzzle that requires some patience before you see the big picture.

It is much recommended for people who think most of what they read about finance is complete garbage manufactured by people who want to sound important. It is also much recommended for people who enjoy finding out things that are a bit harder to understand than everyday things. It is also recommended for people who like to find out that we are all human, no matter how much we play with numbers, computers, regulations, media releases and dictionaries.