The waves of Eliott - Lesson X (Technical Analysis Course Book 10)

Ralph Nelson Elliott's father "Wave Theory" was born in California in 1871. Elliott spent the years of the American economic boom, the feverish activity of production, and the resulting speculation spectacular stock market, everyone could easily get rich, go to the bank and get enough borrowed money. The rest was just pour a margin of only 10% to operate on the stock exchange, it was so high the ability to make profits. But, when the US stock market, in October 1929, suffered the worst slump in its history, the reality was under the eyes of investors who watched in disbelief their savings evaporate.
All these events excited the mind of Elliott who took the opportunity to approach the study of the behavior of the stock market. Necessary step was the study of the Dow Theory and the works of his students, particularly Robert Rhea, with his book "Dow Theory comment".
Elliott followed the classic path of every fan of trading, he read everything there was to read and conducted a series of studies on the charts of the US stock market on an annual, monthly, weekly, daily, up to 30 minutes, covering 75 years History. In 1934 he stood before him in the eyes of the discovery that revolutionized the existence: the behavior of the market was summarized and synthesized in a series of principles applicable in every period and in every market. And so, at the age of 64 years, Elliott began what later labeled as the "fifth wave" of his life.
Elliott is still considered by his admirers the only worthy successor to Dow in the analysis of market movements. And indeed he fully confirms studies Dow, but first introduces a number of more precise definitions for each phase of the market; in particular adds a number of elements with a specific forecast lapel, or no more than mere identification of the market trend (upward or downward), but also the calculation of price levels reached.