What is Harmonic Eliott Wave (HEV)?

Question

Christopher · Accepted Answer

In technical analysis, the Elliott Wave theory is the analysis of long-term trends in price patterns and how they correspond with investor psychology. These price patterns, referred to as ‘waves’, are built on specific rules that were developed by Ralph Nelson Elliott in the 1930s. Specifically, they were designed to identify and predict wave patterns within stock markets. Importantly these patterns are not intended to be certain, but instead provide probable outcomes for future price movements.

Harvey · Answer

Elliott Wave Theory is a method of technical analysis that traders use to analyze and quantify price patterns in financial markets by looking at cycles. The theory believes that changes in investor sentiment and their psychology creates impulse waves and corrective waves inside the larger trends in market price action. The theory attempts to forecast market trends by identifying the most extremes in trader’s collective psychology that create the highs and lows in price action.Ralph Nelson Elliott developed the theory of the underlying principles and created the analytical tools back in the 1930s. He believed that prices in markets play out in specific wave patterns, which his followers call ‘Elliott waves’. In 1938, he published this theory of market behaviour in his book ‘The Wave Principle’. In 1946, he covered his Elliott Wave Principles most completely in his final book: ‘Nature’s Laws: The Secret of the Universe’.Elliott wave analysts believe that each wave has its own characteristic, which usually reflects the psychology of the current market move. Understanding the characteristic is thought to be the key to the correct use of the Elliott Wave Principle.

William · Answer

This theory is named after Ralph Nelson Elliott who propounded this theory having been inspired by Dow Theory. The basis here is that the stock market movement can be predicted by a pattern of waves which are repetitive. In fact, Elliott stated that all activities and not only stock market movements are influenced by these waves which form an identifiable series. In the simplest form, the trend direction contains five waves; corrections in trends are three waves. Smaller patterns are easily identified inside bigger patterns. Both long and short term charts show these patterns.

What is Harmonic Eliott Wave (HEV)?

6 Answer

6 Answer

What is Harmonic Eliott Wave (HEV)?

6 Answer

6 Answer

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