Briefly, Elliott theorized that all major market moves could be described by a five-wave series. The classic Elliott Wave series would consist of an initial wave up, a second wave down (often retracing 61.8% of the initial move up), then the third wave (usually the largest) up again, then another retracement, and finally the fifth wave, the last gasp, which would exhaust the movement. He described all sorts of Fibonacci relationships which could occur among these waves.
http://www.luckymojo.com/fibonaccimkt.html
http://en.wikipedia.org/wiki/Elliott_wave_principle
Elementary propositions for leisure read and to evoke interest in deeper follow-ups.
Showing posts with label Investment. Show all posts
Showing posts with label Investment. Show all posts
Tuesday, February 5, 2008
Sunday, November 11, 2007
Seersucker Theory of Investing
For every seer, there's a sucker
David Leinweber, an expert in quantitive investment, satirised the 'science' of prediction by sifting through numbers to see how he could have forecast the performance of the US stock market from 1981 through 1993. He combined the total volume of butter produced each year in Bangladesh with the number of sheep in the US and a few other variables, to produce a formula that forecast the past with 99 per cent accuracy.
Different explanation here,
http://www.thehindubusinessline.com/iw/2006/01/08/stories/2006010800871300.htm
David Leinweber, an expert in quantitive investment, satirised the 'science' of prediction by sifting through numbers to see how he could have forecast the performance of the US stock market from 1981 through 1993. He combined the total volume of butter produced each year in Bangladesh with the number of sheep in the US and a few other variables, to produce a formula that forecast the past with 99 per cent accuracy.
Different explanation here,
http://www.thehindubusinessline.com/iw/2006/01/08/stories/2006010800871300.htm
Friday, September 28, 2007
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