The Elliott Wave Principle and its Applications in Security Analysis

Abstract

The study is determined on an analysis and pattern recognition of equity or share price, which are fractal in nature. Elliott waves are considered as the crowded psychological effect. The wave principle used by trader or investor to evaluate market cycle and forecast the future trend of market by identifying the waves with price movement of market. The share price fluctuations are due to several economic and non-economic factors. Among the developing countries, India has received considerable capital inflows in recent years. This study is basically aimed at ascertaining the behavior of stock price follow the Elliott wave rules. This study analyses the equity stock fluctuations of India and relates it with the structure of Elliott waves. Elliott wave measures the trend’s strength and predicting trends reversal of given share price in future. This study will help the technical analyst know the behavior of share prices.

Keywords: Corrective wave, Elliot wave, Fibonacci ratios, Fibonacci retracement, impulsive wave, stock market

Cite this Article

Himanshu Patel, Hardik Modi. The Elliott Wave Principle and its Applications in Security Analysis. Research & Reviews: Journal of Statistics. 2018; 7(3): 1–6p