Through a long illness the writer had the opportunity to study the available information concerning stock market behavior. Gradually the wild, senseless and apparently uncontrollable changes in prices from year to year, from month to month, or from day to day, linked themselves into a law-abiding rhythmic pattern of waves. This pattern seems to repeat itself over and over again. With knowledge of this law or phenomenon (that I have called the Wave Principle), it is possible to measure and forecast the various trends and corrections (Minor, Intermediate, Major and even movements of still greater degree) that go to complete a great cycle.
R.N. Elliott's Discovery Foretells a Major Market Turn Still to Come
Adversity often visits people just as their future seems brightest.
At the same time, other people learn that when one of life's doors closes, a window will open.
Both of these truisms describe the life of Ralph N. Elliott (1871-1948), the founder of the Wave Principle.
In the 1920s, Elliott became a successful business consultant. But his life of accomplishment and financial independence were in peril when he fell gravely ill.
During months of recuperation, Elliott occupied his mind with a meticulous study of the stock market.