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Technical Analysts

Technical Analyst: Ralph N. Elliott

Elliott Wave Theory

Ralph Elliott was a qualified accountant who discovered the underlying wave pattern, known today as the Elliott Wave Principle that belies the price movement in the stock markets, the commodities markets and the Forex markets.

In Elliott Wave Theory, the market price traces a fairly rigid, cyclic pattern that is constituted by an impulse phase that typically consists of a five-wave structure and a corrective phase that typically consists of a three wave structure. A five wave impulsive phase and a three wave corrective phase forms a complete cycle. However, these waves can have extensions. Elliott has a number of guidelines that govern these extensions. Elliott has also developed other ...