The document discusses the Elliott Wave Theory, which proposes that stock markets move in recurring cycles or waves. It states that each cycle is composed of shorter term waves that follow rhythmic patterns, which can be used to predict future stock prices and market trends. These waves reflect shifts in investor psychology from positive to negative sentiment. The document also examines identifying stocks that may follow the Elliott Wave Theory and investing according to their upward and downward trends, as well as weaknesses of technical analysis such as analyst bias.

1. ELLIOTT
WAVE
THEORY
Tina Goyal 9699

2. TheElliotWavePrincipleisbasedonarepeating8-wavecycle
TheElliotWavePrincipleisbasedonarepeating8-wavecycle and
and
eachcycleismadeupofsimilarshorter-termcycle
eachcycleismadeupofsimilarshorter-termcycle
Thesewaveshavearhythmicpatternandthesepatternscanbe
Thesewaveshavearhythmicpatternandthesepatternscanbe
usedtopredictfuturepricesofstocksandpredicttrendsofthe
usedtopredictfuturepricesofstocksandpredicttrendsofthe
market.
market.
Thesewavesmovewithinvestorpsychologyi.e.wavesshowan
Thesewavesmovewithinvestorpsychologyi.e.wavesshowan
U
Upwardtrendwhencrowdispositiveandtoomuchpositivitylead
pwardtrendwhencrowdispositiveandtoomuchpositivitylead
toadownwardtrendinthewave.
toadownwardtrendinthewave.
Elliott Wave Theory
Tina Goyal 9699

3. Identification of Stocks that may follow the Elliot Wave Theory
Identification of Stocks that may follow the Elliot Wave Theory
" Invest the money in those stocks when the upward trend of these stocks
" Invest the money in those stocks when the upward trend of these stocks
start
start
" Booking of Profit when the downward trend in those stocks start.
" Booking of Profit when the downward trend in those stocks start.
" The upward and downward trend of these stocks are estimated on the
" The upward and downward trend of these stocks are estimated on the
base of the stock charts ,total market capitalization of the stock
base of the stock charts ,total market capitalization of the stock
and the general public interest for that particular stock.
and the general public interest for that particular stock.
Rising trend Falling trend
Elliott Wave Theory
Tina Goyal 9699

4. WEAKNESSES OF
TECHNICAL
ANALYSIS
Analyst Bias
Analyst Bias
Too Late
Too Late
Non-applicability to all in
Non-applicability to all in
same way
same way
Tina Goyal 9699

5. Base of analysis
Type of Investor
Scope of Analysis
Logical vs Psychological
Tools of Analysis
FUNDAMENTAL ANALYSIS VS
TECHNICAL ANALYSIS
Tina Goyal 9699

6. CONCLUSION
Technical analysis considers the market to be 80%
psychological and 20% logical. However, 1udging the
psychology of everyone is not an easy task. Although
some principles and rules of echnical analysis are
universally applicable, it must be remembered that
technical analysis is more an in form than a science which
brings subjectivity into it. However, it is also flexible in
its approach rnd each investor should use only that which
suits his or her style.
Tina Goyal 9699

7. THANKYOU
THANKYOU
THANKYOU