To visit ElliottWave.com, click here →
Robert R. Prechter is known for developing a theory of social causality called socionomics, for developing a new theory of finance, for his work on Elizabethan authorship and for his long career applying and enhancing R.N. Elliott’s model of financial pricing called the Wave Principle.
Socionomics
Prechter has developed a theory of causality of social action called socionomics. Under development since the 1970s, this idea first reached a national audience in a 1985 cover article in Barron’s. Prechter has made presentations about socionomic theory at the London School of Economics, MIT, Georgia Tech, SUNY, University of Cambridge, University of Oxford, Trinity College Dublin and various academic conferences. Follow this link for a description of socionomic theory.
Financial Theory
Prechter has developed a theory of financial causality called the Socionomic Theory of Finance (STF). STF proposes a fundamental separation between the fields of finance and economics. It opposes the Efficient Market Hypothesis (EMH)—which equates economic and financial markets—on ten major points. STF is not derivative of any preceding theory, making it a new paradigm. Follow this link for a description.
The Wave Principle
Prechter is known for a long career in the development and application of the Wave Principle, an empirically derived model of financial pricing identified and described by Ralph Nelson Elliott in the 1930s. According to this model, financial market prices—especially aggregate stock market prices, which are particularly sensitive to fluctuations in social mood—develop in a series of five “waves” in the direction of the immediately larger trend and in a series of three waves (or combination thereof) when moving opposite to the immediately larger trend, thereby producing a patterned, hierarchical fractal. This 5-3 fractal construction leads naturally and efficiently to fluctuation at all scales, to trending at each degree of the hierarchy and to a tendency of price movements to display Fibonacci relationships. These waves take certain described forms called Elliott waves, described in the Elliott wave model. This model is compatible with socionomics and Prechter’s theory of finance. Prechter has written/edited a dozen books on the Wave Principle, including the original works of R.N. Elliott and his successors. Essential books relating to this aspect of Prechter’s work can be found at www.elliottwave.com/books.
Market Analysis and Forecasting
Prechter began applying the Wave Principle to financial markets in publications beginning in 1976. Each month, he writes The Elliott Wave Theorist. His colleagues at Elliott Wave International produce Global Market Perspective, a 100-page analysis of major markets around the world. EWI also provides Short Term Updates, intraday analysis of major markets, and Pro Services covering currencies, metals, commodities, bonds and energy markets. Prechter’s son Elliott has developed software called EWAVES that automates Elliott wave analysis for real-time markets.
Awards
Prechter won the U.S. Trading Championship in 1984 with a then-record 444% return in four months in a monitored, real-money options trading account. His publication, The Elliott Wave Theorist, won numerous speaking, timing and publishing awards during the 1980s, and in 1989, he was named “Guru of the Decade” by the Financial News Network (now CNBC). In 1999, Prechter received the Canadian Society of Technical Analysts’ inaugural A.J. Frost Memorial Award for Outstanding Contribution to the Development of Technical Analysis. In 2003, Traders Library granted him its Hall of Fame award. The Market Technicians Association presented Prechter its Annual Award in 2013.
Elizabethan Authorship
Authorship of Elizabethan-era creative literature has long been a subject of mystery due to the widespread use of pseudonyms, allonyms and anonymity. In 1997, Prechter set out to investigate every play, poem, prose story and literary translation from the Elizabethan era from 1557 through 1604 to determine their true authorship. Over a period of 24 years, he accessed 3000 Elizabethan and Jacobean publications as well as 2800 scholarly books, papers and articles. In 2021, Prechter completed the project. His bookset on Elizabethan authorship is posted at www.oxfordsvoices.com.
Bio
click here