05.09.2019

Prechter And Frost's Standard Text On Elliott

Prechter And Frost's Standard Text On Elliott Rating: 3,7/5 8325 votes

The Elliott Wave Principle Explained, Free 248 Page Ebook. In Frost and Prechter’s text Elliott Wave Principle. As Prechter and Frost state in the Author’s Note.

  1. Comprehensive Course On The Wave Principle
  1. The Elliott wave principle is a form of technical analysis that finance traders use to analyze The GBP/JPY currency chart gives an example of a fourth wave retracement apparently Paul Tudor Jones, the billionaire commodity trader, calls Prechter and Frost's standard text on Wikisource:File:Futures (August MetaTrader 5 blue cross blue shield.
  2. There are several excellent books on the topic of Elliot Wave Trading I would say that the Bible of Elliot Wave Trading is: Elliott Wave Principle - Key to Market Behavior Some other great books on the topic include the following: Five Waves to F.
(Redirected from Bob Prechter)

Robert R. Prechter Jr. (born March 25, 1949)[1] is an Americanauthor and stock market analyst, known for his financial forecasts using the Elliott Wave Principle. Prechter is an author and co-author of 14 books, and editor of 2 books,[2] and his book Conquer the Crash was a New York Times bestseller in 2002.[3] He also has published monthly financial commentary in the newsletter The Elliott Wave Theorist since 1979, and is the founder of Elliott Wave International and New Classics Library.[4][5] Prechter served on the board of the CMT Association for nine years, and as its President in 1990-1991. In recent years Prechter has supported the study of socionomics, a theory about human social behavior.[6][7]

In 2014 at the IFTA Conference in London Prechter was created a Fellow of the UK Society of Technical Analysts[8] in recognition of his lifetime contributions to Technical Analysis.

Biography[edit]

Prechter attended Yale University and graduated with a B.A. degree in psychology in 1971. He became a drummer for his rock band throughout circa early 1970s.[9][10] His career as an analyst began when he joined Merrill Lynch as a market technician in 1975, where he learned much about the trade from Merrill's Chief Market Strategist, Robert Farrell (June 1982).[5][11] There Prechter also learned of Ralph Nelson Elliott and the Elliott wave principle and was deeply intrigued:

So I tracked down R.N. Elliott's original books. They weren't even in the Library of Congress. But I finally dug around in the New York Public Library and found a catalog card listing a copy of them on microfilm and had photocopies made. I was amazed to find that there was a wealth of information that had been lost to Wall Street.[12]

Prechter has also said, 'after I decided to make markets a career, I realized that mass psychology is what they're all about.' [12]

Prominence[edit]

In 1979 Prechter left Merrill Lynch and published the first subscription issue of the Elliott Wave Theorist. The 1970s had been very bullish years in the gold market but mostly bearish for stocks, yet his Elliott wave analysis called for a long-term reversal lower in gold (February 1980)[5][13] and a long-term 'super bull market underway' in stocks (October 1982).[5][14] Because these forecasts proved mostly correct—especially for the stock indexes—Prechter's following grew.

His visibility increased further after he won the U.S. Trading Championship in 1984, with a then-record 444% return in a monitored options trading account.[15] He was profiled in many financial and business publications and named 'Guru of the Decade' by the Financial News Network (now CNBC) for the 1980s.[16]

Prechter has been forecasting a large-scale bear market, as explained in his book Conquer the Crash.[17]

Re-introduces Elliott[edit]

Much of Prechter's career as a publisher includes his efforts to re-introduce R.N. Elliott's wave principle to investors.[11] He compiled and republished all of Elliott's available writings, including the 1938 'Wave Principle,' and the 'Interpretive' and 'Forecast' letters (1938–1946). Prechter also published a brief biography of Elliott and the collected Elliott wave writings of the few technicians who practiced wave analysis in the 1950s and 1960s (Charles Collins, Hamilton Bolton, A.J. Frost, Richard Russell).

Still, not all the popular exposure to Elliott wave analysis was the result of Prechter's deliberate efforts. In the few years before and after 1987, media coverage inflated Prechter's 'guru' status to extremes, including the assertion that his forecasts could single-handedly 'cause' the stock market to rise or fall.[18] In the months after Black Monday in October 1987, subscriptions to Prechter's Elliott Wave Theorist surged to some 20,000. That number declined in the early 1990s (as did the subscription levels of most other financial publishers), though 'Prechter has done more to popularize and spread Elliott's philosophy than anyone else.'[19]

Socionomics[edit]

In 1979, Prechter postulated that social mood drives financial, macroeconomic and political behavior, in contrast to the conventional notion that such events drive social mood.[20] His description of social mood as the driver of cultural trends reached a national audience in a 1985 cover article in Barron's.[21] Prechter coined the term 'socionomics' and in 1999 published an exposition of socionomic theory, The Wave Principle of Human Social Behavior.[6] In 2003, he published an anthology of empirical work in the field, Pioneering Studies in Socionomics.

Since then, the counter-intuitive premise of the socionomic hypothesis—that social mood drives the character of social events—has gained attention in academic journals,[22][23][24] books,[25][26] the popular press,[27][28][29] universities,[30] academic conferences[31][32] and in research funded by the National Science Foundation.[33][34] The Socionomics Foundation hosts an annual conference each April in Atlanta GA regarding social mood.[35] The conferences have included presentations from academics, authors and financial professionals such as Richard L. Peterson, Tobias Preis, Johan Bollen,John Casti,Michelle Baddeley,Todd Harrison, Eric Gilbert and Robert Prechter.

Criticism[edit]

While Prechter has his admirers, he has been criticized by media and pundits for his long term record. For example, The Wall Street Journal ran a page one article in August 1993 with the headline, 'Robert Prechter sees his 3600 on the Dow – But 6 years late,' in reference to Prechter's 1987 forecast for the Dow Jones Industrial Average.[36] Technical analyst David Aronson wrote:

The Elliott Wave Principle, as popularly practiced, is not a legitimate theory, but a story, and a compelling one that is eloquently told by Robert Prechter. The account is especially persuasive because EWP has the seemingly remarkable ability to fit any segment of market history down to its most minute fluctuations. I contend this is made possible by the method's loosely defined rules and the ability to postulate a large number of nested waves of varying magnitude. This gives the Elliott analyst the same freedom and flexibility that allowed pre-Copernican astronomers to explain all observed planet movements even though their underlying theory of an Earth-centered universe was wrong.[37]

Notes[edit]

  1. ^Prechter, Robert R(ougelot) Jr.
  2. ^Robert R. Prechter Jr., Bibliography, Amazon.com.
  3. ^Best Sellers List. (11 August 2002). 'Book Review'. New York Times. p. 24.
  4. ^Chen, James. (2010). Essentials of Technical Analysis for Financial Markets. New York: John Wiley and Sons. p. 4. ISBN978-0-470-53729-9.
  5. ^ abcdPrechter, Robert R. Jr. 'Elliott Wave Theorist'. Elliott Wave International. Gainesville, Georgia.Essays include Peter Brandt, April 1991; Anne Crittenden, December 1997; Paul Macrae Montgomery, November 2000; Mark Galasiewski, July 2006.
  6. ^ abPrechter, Robert R. Jr., (2003). Socionomics: The Science of History and Social Prediction, Gainesville, GA: New Classics Library. ISBN0-932750-57-5. Two volumes: The Wave Principle of Human Social Behavior (1999); Pioneering Studies in Socionomics (2003).
  7. ^Penn, David. (June 2003). 'Social Mood and the Markets'. Technical Analysis of Stocks & Commodities: 50.
  8. ^'STA Fellows'. Society of Technical Analysts. Retrieved 2019-01-24.
  9. ^Aitken, Lee (May 11, 1987). 'Ace Analyst Robert Prechter Says When Skirts Rise, So Does the Stock Market—no Bull'. People. Retrieved November 20, 2016.
  10. ^Krass, Peter (1999). 'Robert R. Prechter (1949–)'. The Book of Investing Wisdom. John Wiley & Sons. ISBN978-0-471-29454-2. Retrieved November 20, 2016 – via Google Books.
  11. ^ abMcCaffrey Brecht, Kira. (July 2003). 'Trader's Hall of Fame Award - Robert Prechter - An Interview with the Elliott Wave Guru'. Stocks, Futures & Options Magazine. p. 42.
  12. ^ abPrechter, Robert R. Jr. (2004) [1996]. Prechter's Perspective. Gainesville, Georgia: New Classics Library. p. 6. ISBN978-0-932750-61-7.
  13. ^Lazarovic, Karen. (30 April 1985). 'Elliott-wave technician sees 2d-half blastoff'. New York Post: 36.
  14. ^Shaw, Russell; Landis, David. (9 October 1987). 'Prechter flees Wall St. for Georgia hills'. USA Today: B1.
  15. ^Myerson, Allen R. (October 1985). 'Robert Prechter: From Lake Lanier, He Can See Wall Street Clearly'. Georgia Trend: 26.
  16. ^Hendrick, Bill. (15 July 1990). 'Unbelievers Don't Worry Prechter'. Atlanta Journal Constitution: H–4.
  17. ^Prechter, Robert R. Jr. (2002/2009). Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression (2 ed.). New York: John Wiley and Sons. ISBN978-0-470-56797-5.Check date values in: year= (help)
  18. ^Wiggins, Phillip H. (7 October 1987). 'Dow Drops a Record 91.55 Points'. New York Times. pp. A1.
  19. ^Grimes, Millard. (August 1994). 'Whatever happened to Robert Prechter?'. Georgia Trend: 24.
  20. ^Prechter, Robert R. Jr. (August 1979). 'What's Going On?' The Elliott Wave Theorist. Elliott Wave International. Gainesville, GA. Reprinted in Pioneering Studies (2003).
  21. ^Prechter, Robert R. Jr. (9 September 1985). 'Elvis, Frankenstein and Andy Warhol'. Barron's.
  22. ^Prechter, Robert R. Jr.; Parker, Wayne D. (2007). 'The Financial/Economic Dichotomy in Social Behavioral Dynamics: The Socionomic Perspective'. Journal of Behavioral Finance. Vol. 8 No. 2, pp. 84-108. Abstract here. Retrieved Nov. 19, 2007.
  23. ^Bollen, Johan; Mao, Huina; Zeng, Xiaojun. (March 2011). 'Twitter mood predicts the stock market'. Journal of Computational Science. Vol. 2, No. 1, pp. 1-8. Abstract here. Retrieved April 24, 2012.
  24. ^Taylor, Richard. (3 September 2010). 'Mood Swings'. Science. Preview here. Retrieved April 24, 2012.
  25. ^Casti, John L. (2010). Mood Matters: From Rising Skirt Lengths to the Collapse of World Powers. New York: Springer.
  26. ^Malik, Constantin. (2010). Ahead of Change: How Crowd Psychology and Cybernetics Transform the Way We Govern. Frankfurt: Campus Verlag. p.69. Abstract here. Retrieved May 29, 2012.
  27. ^Moyer, Justin. (3 February 2012). 'If Romney wants to beat Obama, he should hope the Dow crashes'. Washington Post. Article here. Retrieved May 29, 2012.
  28. ^Krantz, Matt. (17 November 2009). “Could the Pop-Culture Mood Mirror Stock Market Swings?” USA Today. Article here. Retrieved May 14, 2012.
  29. ^Editorial. (7 August 2009). 'Could recession end cannabis ban?'. New Scientist. Preview here. Retrieved May 29, 2012.
  30. ^Prechter, Robert R. Jr. (2004). 'Socionomics - Social Mood as the Engine of Social Activity'. Presented at the London School of Economics and Political Science, London, England, 18 March 2004. Document here. Retrieved April 25, 2012.
  31. ^Parker, Wayne D. (2006). 'The Socionomic Theory of Finance and the Institution of Social Mood: Pareto and the Sociology of Instinct and Rationalization'. Presented at the Conference of the Association for Heterodox Economics, London, United Kingdom, July 14–16, 2006. Program here. Retrieved May 14, 2012.
  32. ^Lampert, Matt. (2011). 'The Central Bank in the Liberal Market Economy: Market Leader or Follower? Recent Comparative Evidence from the U.S. and Australia'. Presented at the Academy of Behavioral Finance Conference, University of California-Los Angeles, Los Angeles, California, September 22, 2011. Document here. Retrieved May 29, 2012.
  33. ^Announcement of this research in 2006 by the American National Election Studies. Retrieved Nov. 19, 2007.
  34. ^Announcement of this research in 2011 by the National Academies of Science. Retrieved April 25, 2012.
  35. ^http://www.socialmoodconference.com/ Retrieved May 6, 2015.
  36. ^Power, William. (19 August 1993). 'Robert Prechter sees his 3600 on the Dow – But 6 years late'. The Wall Street Journal.
  37. ^Aronson, David R. (2006). Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals. New York: John Wiley and Sons. p. 41. ISBN978-0-470-00874-4.

References[edit]

  • Essentials of Technical Analysis for Financial Markets by James Chen. Published by John Wiley and Sons. ISBN978-0-470-53729-9.
  • Socionomics: The Science of History and Social Prediction by Robert Prechter. Published by New Classics Library. ISBN0-932750-57-5.
  • Prechter's Perspective by Robert Prechter. Published by New Classics Library. ISBN978-0-932750-61-7.
  • Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals by David R. Aronson. Published by John Wiley and Sons. ISBN978-0-470-00874-4
  • Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression (2 ed.) by Robert Prechter. Published by John Wiley and Sons. ISBN978-0-470-56797-5.
  • Behavioral Trading: Methods for Measuring Investor Confidence and Expectations by Woody Dorsey. Published by Texere. ISBN1-58799-164-0.

External links[edit]

Retrieved from 'https://en.wikipedia.org/w/index.php?title=Robert_Prechter&oldid=887655766'
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Preview — Elliott Wave Principle by A.J. Frost

From the Publisher 'This is a definitive, excellent book on Elliott, and I recommend it to all who have an interest in the Wave Principle.' Richard Russell, Dow Theory Letters 'Gold and Silver Today wholeheartedly endorses this book. It is the definitive work on a scientific wave theory of human experience. If you are interested in technical or wave analysis, it should be...more
Published February 8th 2001 by Wiley (first published November 30th 1977)
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Dhiaaactually it contains the most sophisticated description of the corrections .
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'The stock market is not a random, formless mess reacting to current news events but a remarkably precise recording of the formal structure of the progress of man' (page 113). Rather, it unfolds in waves, and 'when presented clearly, the basic tenets of the Wave Principle are easy to learn and apply' (authors' note).
Authors Frost and Prechter certainly deliver on their second point, presenting clearly and in concise chapters: the broad concept; guidelines to wave formation; the historical and ma...more
I struggled through this book. This book was so hard to understand and grasp.
I started reading this book excited to learn about Elliott Wave Principle. In the first few chapters, the books starts off stating 'if you are not an analyst skip through these chapters and go to chapter 3'. I decided I'll read through everything word for word. Which ended up being figures, numbers and historical data which I found hard to piece together and irrelevant most of the time.
Now that I have finished this bo...more
Mar 20, 2018Shaili rated it really liked it
This is the standard book for understanding and in-depth study of the Elliott Wave Theory. With its more than adequate explanations, comprehensive guidelines, and numerous examples, that's no surprise.
This book cleared most, if not all, of my queries and curiosities of Elliott Wave Principle. And not only that, it provides a clear, structured view of the rules to rigidly follow and guidelines to consider in virtually any possible scenario in wave count.
This was the second book I read on Forex, it was probably not the best choice for someone just beginning. Even though I knew very little on the subject, I found this very interesting. It was an investment I don’t regret, glad I made the purchase.

Comprehensive Course On The Wave Principle

Really good book on Eliott Wave and its forms. The book holds up extremely well considering it is 40 years old. There is some flaws, as the book probably doesnt provide enough evidence or analysis, nonetheless it is still a good introduction.
Jan 28, 2018OthelloTECS rated it it was amazing · review of another edition
Amazon merged ebooks with audio books and made an educational unicorn.
The order of topics flow well. I've done much better at making larger returns per trade. It has also helped to introduce me to new topics to explore.
Aug 03, 2018Max rated it liked it
The definitive book on Elliot Waves - can be dense and confusing. Definitely supplement with videos
Mar 13, 2018Julie Browning rated it it was amazing · review of another edition
A wonderful book on the wave principle. A must have for individual investors to gain further knowledge of the psychology of the market.
good
Jun 03, 2010Patrick rated it really liked it · review of another edition
From Amazon:
A Great Classic for Three Decades: Now In Its 10th Edition, Consider What This 'Definitive Text' Offers You Take a moment to look over your books about investing. Have any of them given you a successful method for making profits and reducing risks? Is there even one such book that has proven reliable over the years? Alas, most investors would say 'no.' That's because so few investment books are 'classic' in the true sense: For years investors keep buying the book, and they keep using...more
Maior parte do livro pode ser considerada um teste de rorschach
Porém se conseguir compreender o mínimo apresentado sem se apegar aos detalhes pode apresentar uma nova maneira de olhar o mercado e consequentemente uma nova ferramente para tomada de decisão.
It's a great book.
Elliot taught us that it's not news moving the price and creating waves, but it is the mass human psychology of investors.
and the next important thing he tried to tell was this fact that mass psychology shows itself in specific patterns.
but the big problem with this book is that Elliot doesn't tell us what a single wave is !
The ultimate book for understanding the markets.
Views the market with different perspectives from psychology to technical point of view and gives you a pleasant feeling of understanding a new thorough paradigm to look at the markets.
This book is referred to as the 'Bible of Elliott Practitioners' by many market gurus.
Mar 13, 2016Maximus rated it liked it
Elliot Wave Principle proposes common chart patterns as links to mass psychology. The typical pattern moves in a 5 wave zigzag in one direction followed by a 3 wave zigzag in the other. The principle also pulls in price swings and timings based on the golden ratio.
Prechter
Elliott Wave principle simplified! If you are new to Elliott wave principle this book can be a great start! All the patterns are explained clearly in a simple way.
Nov 01, 2014Awertgafadgfz rated it did not like it
ocus pocus bullshit. An unfounded narrative for stock market behavior. a ridiculus attempt to explain how a complez system evolves. No predictive capability, unfalsifiable claims.
xxxxx
The first 2 chapters are most relevant. As with many other trading frameworks, one would have to experiment plenty on his/her own to come up with a consistent approach.
The overall concept is interesting and perhaps empirically validated but it is weighed down in a large amount of technical gobbledygook.
Ayman Al Satari rated it it was amazing
Apr 27, 2019
FEDERICO CASTRO rated it it was amazing
May 15, 2015
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