Forex Invest for Success

The Elliott Wave Principle of the Forex Market

Ralph Nelson Elliott, a corporate accountant by profession, carefully observed the movement of prices in the financial market, and noticed that certain patterns always comes out themselves again and again, in the 1930s under the forex market.

His discovery was supported by astonishing precise stock market predictions and in forex. According to him, once you know what you were looking for, even some random and unmindful things will produce a significant pattern. Hence this discovery was recognized as the "Elliott Wave Principle", and it carries a vast implications. He had determined the common link that moves the trends in human day to day life, form financial markets to fashion, from politics to traditional cultures, and of course in the crucial trade of forex.

In 1976, Robert Prechter Jr. then president of the Eliott Wave International, brought back to life the Wave Principle which was then would nearly vanished, when he chanced on the complete compilation of Elliott's work in the New York Library. Robert Prechter Jr. and A.J. Frost in 1978 brought out the Elliott Wave Principle This book became a bestseller in the Wallstreet and received some interesting reviews. In Elliott Wave Principle, Prechter and Frost made some forecast which sent the forex market into a roaring boom in the 1980s, and later followed with a record bear market. From the 1980s, familiarization with the Wave principle grew considerably among the private and professional investors.

With the discovery of the Elliott Wave Principle, mixed reactions from traders and investors arise such as;

Disbelief- that the technical analysis alone can predict the forex market and that it has a pattern Joy- because of the discovery of the most vital tool to forecast the future of the market The Positive Response- " This is a useful tool I should know how to use."

Eliott Wave patterns became well known through time and their outlook was made by interruptions to the growth.

To illustrate such principle, take for example our hands being initially formed inside the womb. First, it seems to be a round paddle expanding in both directions of the forex market. After some time the cells between the fingers stopped growing and dies, and the five digits grows. This structural principle of growth is vital to all forms. This "punctuated growth" naturally appears in market datas, according to Robert Prechter Jr., considered as one of the world's foremost expert in Elliott Wave, and president of Elliott Wave Internatonal. Quoting him as saying " Everything that thrives must have setbacks".

The Elliott Wave Principle is the most powerful tool in the forex market business today, as it is the crystal ball of the market. For more informatons and knowledge about the Wave Eliott Principle, join Elliott Wave International's free Club EWI and learn the basic tutorial : 10 Lessons on the Elliott Wave Principle and discover the amzing results in your investments and trading.