Elliott Wave Principle: Key To Market Behavior

by A.J. Frost and Robert R. Prechter Jr.

Book Overview

First published in 1978, Elliott Wave Principle is the definitive text designed to help the Elliott wave novice and veteran practitioner alike. This book will teach you the rules and guidelines of the... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0932750753
• ISBN13: 9780932750754
• Release Date: January 2005
• Publisher: New Classics Library
• Length: 254 Pages
• Weight: 0.78 lbs.

Customer Reviews

Most in depth Elliot wave

This is the most in depth book on Elliot Wave out there. 1 star for being the most in depth book out there on a subject. 2 star for being well written, very readable book. 3 star for price, because it is relatively inexpensive compared to other books. 4 & 5 stars for being something everyone in technical analysis should read. I won't go in depth as to what this book is about, not my place. But I did enjoy it. I didn't say this is the best Elliot Wave book, because I believe Dynamic Trading by Robert C. Minor is better, but Minor's book focuses on the highest probability trades, while this book actually goes over all that Elliot Wave encompasses.

From the Stock Traders Headquarters library

A clear and easy to understand discussion of the Elliot wave theory. Readers are shown how they can apply the theory to forecast market and stock direction. If you want to study 'the wave', surf through this book. David Colletti Founder StockTradersHQ.com

A must read book for position traders

This book is awesome, it teaches you a way of technical analysis that nobody else can even imagine. It implies that the markets are patterned, and that those patterns repeat themselves in all time frames, from 1 day to even 5 years or more. Elliott Wave consists of 13 basic patterns. These patterns are formed by waves and/or market movements. If you can learned to recognize this patterns you can make a lot of money by been able to identify the next move. Elliott wave analysis has rules and guidelines that will help you to know where to place your stop, how to recognize these patterns, how to make the correct wave count within these patterns, will give you the tools to predict price objectives and time frames for those price objectives, and a stop or a limit that will negate the whole thing if been wrong. The result is method that offers high probability trades that works the majority of the time if you are a discipline investor. This book alone won't be enough to make you a great trader, but it would improve your trading dramatically. One tip, you need to learn to validate those wave counts and/or patterns by using several technical indicators that should show certain divergences in certain faces of those patterns and/or waves. The combination of Elliott Wave analysis with traditional Technical Analysis beats any other form of analysis you can possibly imagine. In longer time frames, you need to combine those two with economic cycle theory. I like the Princeton Model. And see the charts and technical indicators in weekly or even monthly basis, and probably in logarithmic scale. Some said that Robert Pretcher was wrong by calling the market top in 2000. Well he wasn't, neither the S & P 500, nor the Nasdaq has regained their 2000 highs, in more than 7 years. And in real terms, as well as in gold terms, the DJIA is still below its 2000 highs. But indeed that doesn't matter to me, I am a position trader, an options position trader, I buy calls and puts, and create spreads, with time frames of two to four months. And believe me, the only way to win with options these way consistently, or at least, most of the time, and grow your money fast and quickly is by using Elliott Wave analisys. If you don't dominate this technique, stay away form options. If you do, be discipline, and trade only deep in the money options. Appling it in for real is a little more difficult than understanding it, and it could probably take several months to learn to do it correctly and to obtain good results consistently, that is assuming you are already a fairly good market technician and have several years of experience investing in the market. Well, it works for me, so I hope it would work for you too. Good luck.

Well Written Book On A Controversial Subject

After reading this book I've decided to study Elliot Waves very carefully. While the book is fairly short the job of constructing degrees and understanding the rules/guidelines will take time to master. The reason I feel it's worth the time is that only Elliot Wave provided a structured way to understand short and long term cycles. The stacking and governance by degree provide meaningful insight into predicting future price movement.

Not a Get-Rich-Quick way of investing

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.