In the financial industry many models are based on Geometric Brownian Motion. However, these models tend to be inadequate and breakdown when the assumptions are violated. Searching for better stochastic models to model the market, I recently ran across an interesting topic in the field of market prediction and structure — the ideas of Ralph Nelson Elliott. It is remarkable that his ideas of market waves and structure were formulated in the 1930’s.  His ideas were popularized by Robert Prechter who has numerous books and articles written on the subject. In this post I have introduced these ideas and will post all the articles and books I have and will read on this subject. I hope to develop these ideas further.

Books:

Harmonic Elliott Wave: The Case for Modification of R. N. Elliott’s Impulsive Wave Structure – Ian Copsey

Mastering Elliott Wave Principle: Elementary Concepts, Wave Patterns, and Practice Exercises – Constance Brown

Elliott Wave Principle: Key to Market Behavior

The Wave Principle of Human Social Behavior and the New Science of Socionomics

Articles:

An Introduction to the Elliott Wave Principle – Jordan Kotick

Multi-classifier based on Elliott wave’s recognition

Fuzzy time-series based on Fibonacci sequence for stock price forecasting

Elliott Wave Theory and neuro-fuzzy systems, in stock market prediction: The WASP system

Unconscious Herding Behavior as the Psychological Basis of Financial Market Trends and Patterns

Videos:

Mastering Elliott Wave – Jamie Saettele