ELLIOTT WAVE THEORY
Elliott Wave Theory: translation
Technical market timing strategy that predicts price movements on the basis of historical price wave patterns and their underlying psychological motives. Robert Prechter is a famous Elliott Wave theorist. Bloomberg Financial Dictionary
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Elliott wave theory El‧li‧ott wave theo‧ry [ˌeliət ˈweɪv ˌθɪəri ǁ -ˌθiːəri] ➔ theory
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A technical analysis theory, which states that the market follows a repetitive pattern, with each cycle made up of a five-wave rise followed by a three-wave fall.There are many different degrees of trend, but the Elliott wave theory categorizes nine different trends (or magnitude) ranging from a grand supercycle covering 200 years to a subminuette of only a couple of hours. The eight-wave cycle is constant, regardless of what degree of trend is being considered.
► See also Technical Analysis.
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Elliott wave theory UK US noun [S] ECONOMICS, STOCK MARKET
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Prechter is a pioneer of Elliott Wave Theory, a statistical analysis tool that is used to predict, among other things, the direction of markets.