The Bible of Elliott Wave from the pioneer in wave analysis now at the lowest price ANYWHERE. Covers basic principles, details theory and application of concepts including: Fibonacci numbers, ratio analysis, time sequence, cyclic analysis, Kondratieff wave and more. "Award of Excellence" - Technical Analyst Assoc.

Visit Our Bookstore!

Elliott Wave Principle: Key to Market Behavior

Elliott Wave Principle came out in November 1978, with the Dow at 790. While this book was immediately regarded by reviewers as the definitive textbook on the Wave Principle, it handily missed the bestseller list by several hundred thousand copies. Nevertheless, due to the spiraling interest in its fascinating content and the continuing success of its long range forecast, Elliott Wave Principle has sold more copies every year, and has now achieved the status of a Wall Street classic.

In this newly expanded edition, every word involving expectations for the future has been kept intact as it originally appeared In that regard, the book remains precisely in its original 1978 form to allow new readers to investigate both the successes and errors in the forecast presented by Frost and Prechter those many years ago. In referring to that forecast in a 1989 article, investment analyst James W. Cowan said, "Even allowing for minor stumbles, that 1978 prediction must go down as the most remarkable stock market prediction of all time." That decisive reaction came as a result of the market's path only up to that time. It remains to be seen whether the final stage of the book's forecast, "three or four years of chaotic conditions in the economy and the markets," given twelve years ago in Chapter 8, will occur. The authors, to
be sure, stick by their scenario.

This expanded 1990 edition features this publisher's note, an enhanced text in several chapters, an appendix on the Wave Principle's fractal nature, and a market forecast update for the 1990s. Otherwise, like the Wave Principle itself, this book has stood the test of time.

Table of Contents

3 Publisher's Note for the 20th Anniversary Edition

5 Acknowledgments

11 Foreword

15 Authors' Note

17 PART I: ELLIOTT THEORY

19 Chapter One: The Broad Concept

20 Basic Tenets

30 Detailed Analytics

30 Motive Waves

30 Impulse

31 Extension

34 Truncation

36 Ending Diagonal

39 Leading Diagonal

40 Corrective Waves

41 Zigzag

45 Flat

48 Horizontal Triangle

52 Combination (Double and Triple Three)

54 Orthodox Tops and Bottoms

55 Reconciling Function and Mode

55 Additional Terminology

57 Erroneous Concepts and Patterns

61 Chapter Two: Guidelines of Wave Formation

61 Alternation

4 Depth of Corrective Waves

66 Behavior Following Fifth Wave Extensions

67 Wave Equality

68 Charting the Waves

69 Channeling

71 Throw-over

72 Scale

74 Volume

75 The "Right Look"

76 Wave Personality

84 Learning the Basics

86 Practical Application

91 Chapter Three: Historical and Mathematical Background of the Wave Principle

91 Leonardo Fibonacci da Pisa

94 The Fibonacci Sequence

101 The Golden Section

102 The Golden Rectangle

104 The Golden Spiral

107 The Meaning of Phi

114 Fibonacci in the Spiraling Stock Market

116 Fibonacci Mathematics in the Structure of the Wave Principle

119 Phi and Additive Growth

123 PART II: ELLIOTT APPLIED

125 Chapter Four: Ratio Analysis and Fibonacci Time Sequences

125 Ratio Analysis

127 Retracements

128 Motive Wave Multiples

129 Corrective Wave Multiples

131 Applied Ratio Analysis

137 Multiple Wave Relationships

139 Fibonacci Time Sequences

141 Benner's Theory

147 Chapter Five: Long Term Waves and an Up- to-Date Composite

151 The Millennium Wave from the Dark Ages

152 The Grand Supercycle Wave from 1789 to Present

156 The Supercycle Wave from 1932

161 Chapter Six: Stocks and Commodities

161 Individual Stocks

165 Commodities

170 Gold

175 Chapter Seven: Other Approaches to the Stock Market and Their Relationship to the Wave Principle

175 Dow Theory

177 The "Kondratieff Wave" Economic Cycle

180 Cycles

181 News

183 Random Walk Theory

184 Technical Analysis

187 The "Economic Analysis" Approach

189 Exogenous Forces

191 Chapter Eight: Elliott Speaks

191 The Next Ten Years

199 Nature's Law

205 Appendix: Long Tenn Forecast Update, 1982-1983

236 Glossary

237 Publisher's Postscript