ELLIOTT’S WAVES THEORY – APPROACH TO TECHNICAL ANALYSIS OF INVESTMENT INSTRUMENTS
Keywords:Elliott Wave Principle, Pulse Wave, Correction Wave, Technical Analysis
AbstractThe theory of Elliott’s waves is the world wide know and reputable theory in many branches of science. This argument is applicable also to financial market topic, where the theory of Elliott’s waves became basic for the whole scale of technical analysis oriented to investment instruments evaluation – mainly the shares, currencies or commodities. Anyway to understand the dilemma correctly, the right choice of its application is quite difficult, not only because of its understanding but also its basics and axioms, and the choice of analytical methods based on its principles used in investment practice. The content of this article is Elliott’s theory basics analysis, focused on research of each kind of Elliott’s waves from mutual relations on each hierarchy levels point of view and also in between each level. Furthermore there are analyses of positive benefits of Elliott’s theory together with whole scale of possible problems and difficulties, which not allow other development and more often use in investment practice.