a litle about Elliot Waves

The Elliott Wave Principle is named for its discoverer, Ralph Nelson Elliott. Mr. Elliott completed his work on the Principle in the 1930s and 1940s. The main idea of this theory is - that the stock market is influenced by the crowd psychology and moves in waves. It is a detailed description of how groups of people behave - mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific and measurable patterns. Using Elliott waves is an exercise in probability. An Elliottician is someone who is able to identify the market structure and anticipate the most likely next move based on our position within the structure. By knowing the wave patterns, you’ll know what the market is likely to do next and (sometimes most importantly) what it will not do next. The stock market is always somewhere in the basic five-wave pattern at the largest degree of trend. And the principle may be applied in all time frames. Some of the largest wave patterns span hundreds of years, while some of the smallest span a few hours. Why I am writing this? It is fun to see how the OMXV index moves in waves. There were, a great down waves for the last few months, and soon it will be a month as it is starting the climbing up waves. (My portfolio is already over 10percent up). It was time to buy, do not be late!