

Elliot Wave Principle - honksillet
http://en.wikipedia.org/wiki/Elliott_wave_principle

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honksillet
The general idea, as it is applied to trading in the stock (and other)
markets, it that this pattern can be applied to stock charts to call the top
or the bottom of a stock move, signaling an investor when to get out or get
in. The pattern when applied to a peak is 3 saw tooth up waves followed by 2
down waves, but it can also be applied to a trough (3 down followed by 2 up).
What's interesting is that it is purported to be a _FRACTAL_ pattern. That is,
its proponents say it can be applied at any time scale: months, weeks, days,
minutes, right down to the most granular unit of time on a market. See this
image.
([http://en.wikipedia.org/wiki/Elliott_wave_principle#/media/F...](http://en.wikipedia.org/wiki/Elliott_wave_principle#/media/File:Elliott_wave.svg\)\[chart\])

It's interesting, but rather hand-wavy in practice. It's too easy to squint
and convince yourself. But it's still a very common "chart reading" technique
in the financial world, despite being ~80 years old.
([http://stocktwits.com/message/37186386)[stockTwits]](http://stocktwits.com/message/37186386\)\[stockTwits\])

