In the year 1920-1930 there was a Genius and a Professional Accountant named Ralph Nelson Elliot. He worked as a professional accountant and he did research and analysis of financial data and stock. In his researched, Elliot found a "real fact" that the stock market moves as random movement or could not be analyzed is apparently not true.
What's going on? in the course of his research for 11 years he finally put together a strong enough evidence about the movements of the stock of the world and the world shocked with Elliot discovery!
He published a book about his theory that give title "THE WAVE PRINCIPLE".
According Elliot, market moved repeatedly !
The meaning is the true meaning which repeatedly has the purpose that the market has hit the value of X, then in a certain period then the Market will try again to touch the value of X. And all the "Natural Philosophy" that happened, actually indicates Psychological and emotional Side of all the world's investors in News/information skyrocket by external influences such as CNBC, Bloomberg or also the influence of Psychological Domination that occurred at that time.
Elliot said that the motion is upward and downward movements of the Market caused by the "Psychological conflicts" World traders, which always appear in the same patterns and shape the character of the wave.
This is what makes an attribute theory of Elliot wave deeply so triggered the attention of the world at that time, because an attribute theory Elliot was able to give them a way to be able to analyze the movement of the Market and identify the right price point for entry/exit from the market.
Elliot believes that, if you can identify the wave from the movement of the Market that look random then you can analyze when Entry and when to Exit the trade in those markets.
But, like all emerging an attribute theory and introduce someone to the world, by then an attribute theory Elliot also must be proved by observation and claimed vindication in the market. Because of the demands of this Elliot forward with theory gave the name with "an attribute theory Elliott Wave"
The basic logic is that given by the Elliot Wave an attribute theory are:
"Basically, the movement of the Market it like a wave, and in the huge Wave created is small waves that are part of a whole and huge waves."
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