FOREWORD

FOREWORD

It has been more than 60 years since the breakthrough discovery.
R.N. Elliott, a modest genius near the end of his life, began to study price movements in the financial markets. He observed that certain patterns of human behavior repeat themselves and with the few years he had left, Elliott offered proof of his discovery by making astonishingly accurate stock market forecasts.
What appears random and unrelated, Elliott said, will actually trace out a recognizable pattern once you learn what to look for. Elliott called his discovery "the Wave Principle," and the implications were huge. He had identified the common link that drives the trends in human affairs, from financial markets to fashion, from politics to popular culture.
Had Elliott been a younger and healthier man he might have changed the world’s understanding of investment markets (and even the social sciences) all by himself. As it was, he died in obscurity in 1948 at the age of 77. Like a masterpiece from the hand of a Renaissance artist, Elliott’s work had to wait for a later generation to benefit from it.
In 1978, Bob Prechter and A.J. Frost rescued Elliott’s discovery from obscurity. Their classic book, Elliott Wave Principle, is published today in seven languages, and still sells thousands of copies each year.
If you’re not familiar with the Wave Principle, please think about what you’ve been missing. In Europe, Asia and the Americas, literally hundreds of thousands of investors now use or recognize the Elliott Wave method for successful investing.
By understanding the Wave Principle, you can anticipate large and small shifts in the psychology driving ANY investment market, and help yourself minimize the emotions that drive your own investment decisions. To that end, we offer you The Basics of the Elliott Wave Principle.