Product Description

"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 required reading." Gold & Silver Today
"This book is extremely well done. It is clear, brief and bold....by far the most useful and comprehensive for both the beginner and the veteran." William Dilanni, Wellington Mgmt. Co.
"An outstanding job...I don't think a better basic handbook of Elliott Wave theory could be written." Donald J. Hoppe, Business and Investment Analysis
"...A top-drawer reference for serious technical analysts....all the nuts and bolts necessary to do their own Elliott Wave assembly." Futures Magazine
"Chapter Three is the best description of Fibonacci numbers we've seen in print and that alone is worth the price of the book." Janes Dines, The Dines Letter
"In a third of a lifetime in this business, this was the first time I really understood Elliott, and this is certainly the first book on Elliott that I could recommend. All the methods that Prechter has used so successfully are fully described in this book." The Professional Investor
"Elliott Wave Principle is such an important, fascinating, even mind-bending work, we are convinced that it should be read by and and every serious student of the market, be they fundamentalist or technician, dealing in stocks, bonds or commodities." Market Decisions
"Even allowing for minor stumbles, that 1978 prediction must go down as the most remarkable stick market prediction of all time." James W. Cowan, Monitor Money Review
Recipient of the Technical Analysis Association's Award of Excellence

Product Details

• Amazon Sales Rank: #56956 in Books
• Published on: 2001-01-16
• Original language: English
• Number of items: 1
• Binding: Paperback
• 240 pages

From the Inside Flap
Robert R. Prechter, Jr. Robert R. Prechter, Jr. is author of several books on the markets and editor of two monthly forecasting publications, The Elliott Wave Theorist and Global Market Perspective. The Hulbert rating service reports that The Theorist exceeded the performance of the Wilshire 5000 over the 131/2 year period ending December 31, 1993, while being exposed to market risk only 500f the time. EWT has won Hard Money Digest's "Award of Excellence" twice and Timer Digest's "Timer of the Year" twice, the only newsletter to do so. In 1984, Mr. Prechter set an all time record in the United States Trading Championship by returning 444.4 0n a monitored real-money options account in the four month contest period. In December 1989, Financial News Network named him "Guru of the Decade". In 1990-1991, Mr. Prechter served as President of the Market Technicians Association in its twenty-first year.

From the Back Cover
"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 required reading." Gold & Silver Today
"This book is extremely well done. It is clear, brief and bold....by far the most useful and comprehensive for both the beginner and the veteran." William Dilanni, Wellington Mgmt. Co.
"An outstanding job...I don't think a better basic handbook of Elliott Wave theory could be written." Donald J. Hoppe, Business and Investment Analysis
"...A top-drawer reference for serious technical analysts....all the nuts and bolts necessary to do their own Elliott Wave assembly." Futures Magazine
"Chapter Three is the best description of Fibonacci numbers we've seen in print and that alone is worth the price of the book." Janes Dines, The Dines Letter
"In a third of a lifetime in this business, this was the first time I really understood Elliott, and this is certainly the first book on Elliott that I could recommend. All the methods that Prechter has used so successfully are fully described in this book." The Professional Investor
"Elliott Wave Principle is such an important, fascinating, even mind-bending work, we are convinced that it should be read by and and every serious student of the market, be they fundamentalist or technician, dealing in stocks, bonds or commodities." Market Decisions
"Even allowing for minor stumbles, that 1978 prediction must go down as the most remarkable stick market prediction of all time." James W. Cowan, Monitor Money Review
Recipient of the Technical Analysis Association's Award of Excellence

About the Author
Robert R. Prechter. Jr. is author of several books on the markets and editor of two monthly forecasting publications, The Elliott Wave Theorist and Global Market Perspective. The Hulbert rating service reports that The Theorist exceeded the performance of the Wilshire 5000 over 131/2 year period ending December 31, 1993, while being exposed to market risk only 500f the time. EWT has won Hard Money Digest's "Award of Excellence" twice and Timer Digest's "Timer of the Year" twice, the only newsletter to do so. In 1984, Mr Prechter set an all time record in the United States Trading Championship by returning 444.4 0n a monitored real-money options account in the four month contest period. In December 1989, Financial News Network named him "Guru of the Decade". In 1990-1991, Mr Prechter serves as President of the Market Technicians Association in its twenty-first year.
Mr Prechter's latest venture is Elliott Wave International, which provides monthly and intraday analysis on stock markets, currencies, interest rates, commodities and social trends to institutional and private investors around the world.
Mr. Prechter attended Yale University on a full scholarship and graduated in 1971 with a degree in psychology. He began his career as a Technical Market Specialist with the Merrill Lynch Market Analysis Department in New York, where his original work with the Wave Principle led to a small but loyal following, introduction to A.J. Frost and ultimately this book.
A.J. Frost C.F.A., a graduate of Queen's University, Kingston, Ontario, started his career as a legal accountant. He achieved his objective on being admitted to the Ontario Institute of Chartered Accountants in 1934 and on his call to the Ontario Bar in 1937. In 1959, he was elected a fellow in the Institute for distinguished service to the accountancy profession. He served as Chairman of the National Capital commissions (Canada) for two years and later sat on the bench as a member of the Tax Appeal Board, Tax Review Board and Anti-Inflation Appeal tribunal. He has handed down many decisions in the field of income tax law. During his career, Mr Frost served on two university councils and the boards of several Canadian corporations.
In 1960, Mr. Frost became a partner of the late Hamilton Bolton, who introduced him ot the Elliott Wave Principle. After Bolton's death in 1967, he wrote two Elliott Wave Supplements for the firm of Bolton-Tremblay, the editors of the Bank Credit Analyst. In 1977, Mr Frost delivered a speech on the Elliott Wave Principle before the Market Technicians Associations. There he met Mr. prechter, whom he found to have remarkably compatible ideas despite their separation by two generations and national boundary. Mr. Frost provided weekly market commentary on Financial New Network and was one of the most frequently requested speakers for meetings of the Canadian Society of Technical Analysts.

Customer Reviews

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 Great Introduction to Elliott Wave Theory with Harmful Flaws
A fellow reviewer of this book said "Obviously people either love this book or they hate it." I disagree. I love and hate this book at the same time. People with different backgrounds and perspectives will view this book differently. I would like to offer my opinions here to those like me, and to others too.

I consider myself a "serious beginner". I read my very first book on stock market in last March and bought my first stock in last May. I became interested in Elliott Wave Theory (EWT) in last August, one week before I gave up my academic career and started trading as full time pursuit. Currently I make a living by trading S&P index with the guidance of EWT.

Ralph Nelson Elliott is one of the greatest observers in human history. I believe that his achievement should be equal to those of the greatest ones such as Newton and Darwin. But I doubt that he will be ever widely recognized simply because the subjects he and his theory have been observing are actually the judges, i.e., we human beings.

EWT had been forgotten by the majority of trading, investing society for decades. Mr. Frost and Mr. Prechter and their book were the main reason that EWT became widely appreciated. I love the concise, old fashion way of writing of this book. All the rules and guidelines of EWT are presented clearly and demonstrated precisely with very well chosen examples. This book is a must have for any Elliott Wave student. I have studied three different editions of this book for five times. I studied some sections and pages more than ten times. This is the book one needs to read over and over again. However, this is a textbook, not a trading manual. Many of the wave counts in the examples are full of hindsight and not practically useful. And many of the situations in the examples aren't tradable. To have a feel of actual application of EWT, one certainly needs some extra practice.

What I dislike about this book is that the authors blended their own opinions into EWT. There's nothing wrong with that if the contributions were meaningful. The reality is that they were often wrong and misleading.

I have heard claims such as "if it didn't fit in Elliott Wave, you counted it wrong", from EWT loyalists. The authors had the same superstitious belief throughout the book. From my limited experiences, I see incompletes, failures and arguable patterns everywhere from hourly charts to weekly charts. Even if this belief is true, it's based on hindsight, and doesn't do any good to what EWT is supposed to do, i.e. to forecast and to make money. This belief will create a mindset which leads to a fatal psychological state. One consequence is over trading. When over trading, you win you will be damned and you lose you will be damned. If you are a trader trading with your livelihood on the line, you know what I mean. I was puzzled by the superstitious concept for weeks until I read Elliott's description of triangle in his classic Natural's Law. He said "......the triangle falls outside the wave phenomenon, as herein discussed, and should be IGNORED." This is enlightening. The moral is that EWT isn't a school exam, in which every question has an answer.

Elliott defined "Half Moon" and "AB base" patterns in his classic Natural's Law. The authors of this book considered that "Half Moon" was not a separate pattern but merely a descriptive phrase. The authors of this book didn't agree "AB base" either and implied that Elliott was too old and confused to give right judgment. They claimed "The authors have never seen an "AB base", and it cannot exist. Its invention by Elliott merely goes to show that for all his meticulous study and profound discovery, he displayed a typical analyst's weakness in......" This is outrageous. And this is where my hatred for this book is from.

Half Moon deserves to be a separate pattern for four reasons. First of all, Elliott said so! Secondly, Half Moon has well defined structures. It is a five wave pattern in which wave 5 significantly bigger than wave 3 and wave 3 significantly bigger than wave 1. Wave 1 and wave 3 can be zigzags in some cases. Thirdly, Half Moon starts from a zigzag and ends at a zigzag. There may be another five wave pattern following the last zigzag, may not, depending on where the Half Moon is at in the pattern one degree higher. If Half Moon isn't a separate pattern, it will violate EWT's rule "five wave pattern in a correction phase will be followed by another five wave pattern". Fourthly, Half Moon happens in market often and is extremely profitable or destructive. I learned Half Moon pattern the hard way in January. At 11:00 am EST on January 4th I called market bottom and reversed my SPX positions prematurely. I lost more than 50 % in a day.

I wonder why the authors of this book had never seen AB Base. I see AB Base everywhere in market. AB Base has unique structure in which motive waves of one degree lesser are actually zigzag and corrective waves of one degree lesser are five wave. AB Base pattern isn't very frequent. But its variations are so common they occupied really high percentage in history. AB Base definitely deserves to be a separate pattern. AB Base has so well defined structure it offers great certainty and trading opportunities. For example, with no doubt I opened March OEX 615 calls at 12:45 pm EST on March 20th for the price of $0.50. The calls expired three hours later at $5.38. The return was 980%. One of the authors of this book, Mr. Prechter rose to guru status and fell hard back in 80s and 90s. If Mr. Prechter was humble enough and studied AB Base carefully before completely denied it, he might recognize the market pattern in late 80s not later than November 1990 and found its analog in history. This way he would at least have a strong alternative wave count and forecast which pointed to the actual market direction in 90s and therefore avoid the catastrophe in his career and decade long humiliation.

There are more improper and arguable comments in the book. I may be wrong though. As I mentioned above that my experience and knowledge are limited.

Five plus stars for the introduction to EWT and zero star for the disrespect and arrogance. Final rating 3 stars.

Not intended to teach you Elliot, but to be dependant on their subscriptions plus wrong forecasting, versus Neely
This book by no means intends to teach you Elliott wave but to have it advertised to you and never give you a grip on the wave principle, so you can only rely on their service which is pricey.

the reason I say that is that you can only grab the principles of Elliott wave by practice and seeing real chart examples, but this book rarely brings real chart examples of the market- less than 4 charts in the entire book which is ridiculous for a material like Elliott wave, the rest is theoretical graph, so there is no application whatsoever.

I always hate books that carries another service behind it.
however in his service, Mr Prechter is more wrong than right:
1- at end of 2006 Mr Prchter predicted on a video forecast on his site for subscribers that oil has topped and it will go down from $75 top, just to come 2007 and prove him wrong by $25

2- at year 2000 Mr prechter predicted that market will never top year 2000 and wrote a book about what he predicted to be a historic crash, just for 2 years later the market proved him wrong as it started climb up all the way and topped year 2000

3- even at end of 2006, he tried to explain his wrong prediction away by saying that the nominal value of the market is going up but the dollar value is going down because of deflation and that will cause a crash, yet 2007 proved him wrong again

4- at end of 2007, his wave count for subscribers are full of "may be this, may be that, market has plenty of options...etc" totally undecided

5- Neely's book on the other hand is very specific, full of rules in every step of the way that leave no chance (almost) for misinterpretations , plus his service is much cheaper, available for anyone to continue his peruse of learning Elliott.

The 2 stars are given because the writing is really concise and doesn't have fillers, which is a plus.