Several sections of technical analysis are attributed to individuals and in fact, traders and analysts, but Elliot Wave is distinguished from all of them and is superior to others. The founder of Elliot Wave theory was Ralph Nelson Elliott, who was born in 1871 in Kansas, and later moved to Texas.
Ralph Nelson Elliott began his career as an accountant in the mid-nineties, eighteenth century. After playing a role in the executive responsibilities of private companies and various successes as advisor, the U.S. State Department appointed him the top management of the Nicaragua audit, which was under American control at the time.
During his presence in Central America, Ralph Nelson discovered that he had suffered a severe illness and he was forced to declare his retirement at the age of fifty – eight. It was at the same time that he decided to dedicate the rest of his life to the study of the American stock market.
When Ralph Nelson began his studies and researches, the general belief was that chaos had spread the American market. However, Elliot surmised that the movements of prices were based on certain principles and procedures. He suggested that market prices reveal a specific trend where all market changes are based on the same patterns. At the time, this theory was a revolutionary idea.
How did Elliot Wave come into existence?
Ralph Nelson Eliot, began his research with examining the stock market data for the past seventy which was summed up annually, monthly, daily, hourly, and half an hourly. Don’t forget that he did so when there was no computer to help in the charting, and he alone had to record the results of his observations. All the analyses performed by Elliot have been performed manually which is surprising and admirable.
While his observations were developed, he began to write the applicable laws on markets, and as soon as his confidence increased, he made them public.
On March 13, 1935, he made a great and accurate prediction that happened the following day. On Thursday, March 13, 1935, the Dow Jones Industrial Index reached its lowest price in the same year. In fact, the market started its rise and continued it for two years, so that the value of Dow Jones doubled. By using the laws, he had invented, Ralph Nelson had predicted it.
What makes this point more prominent is when Elliot has developed his foresight. In 1935, the “Great Failure” was striking in America, and such a prediction was unrealistic. A few months after this miraculous prediction, Ralph Nelson Elliot wrote “The Principles of Elliot” book with Charles J Collins. After publishing this book, Elliot Wave was formally born. Elliot’s death was not Elliot Wave’s death.
After the death of Elliot in 1948, many financial experts made predictions based on Elliot Wave. In the early 1970s, a young analyst, Robert Porchetter, discovered Elliot’s works and again presented it to the world through his books and newsletters. In 1984, Porchetter won the American Trading Championship using Elliot Wave, achieving a record of 444 % of the return on 4 months. Porchetter also predicted 1987 market boom, which began in 1982. In 1989, CNBC named him “Guru of the Decade”.
Nowadays, Porchetter is best known as Elliot Wave’s greatest analyst, and his book (the Elliot wave principles) is a modern Bible for those interested in the matter. Are you a good reader, too? Would you like to know more about Elliot? To complete this article, ITBFX always welcome your comments and suggestions. For better understanding Elliot wave, which academic resources of ITBFX, will help you?
Luckily, ITBFX brokerage has found high reference to the support of more than fifteen years of active and highly successful presence in different global markets, relying on the knowledge of its experts and economic and financial experts as an educational and information reference of the world markets. There is almost no unspoken hint of financial markets from introduction to how to function and be present in any market. You can also make yourself available from any relevant workshops and related training courses supported by the content posted on the official ITBFX brokerage website.
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Sources for further study
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