Forex encyclopedia

Elliot Wave Theory as mathematical theory about identifiable models determining behavior of society or financial markets was offered by Ralph Nelson Elliot in 30-s of 20th century. Elliot distinguished eight models that are regularly repeated. At present, one can say that results of Elliot's observations for market are “fractal”, but this term came later from theory oh chaos, although Elliot defined that theory by describing components of wave theory and their interrelation. The first book of Ralph Elliot “The Wave Principle” came off the press in 1938. Then in the beginning of 1939 Elliot write 12 articles by order of “Financial world” magazine and in 1946 year he united all his works in the final writings “Nature’s Law — The Secret of the Universe”, and this books becomes the best of his works.

DeMarker Indicator is the technical indicator matching current High with the previous Highs. For the first time the indicator was published in the book by Thomas DeMark called "The New Science of Technical Analysis". Originally Mr. DeMark wondered if it is possible to create such a technical instrument that would have no drawbacks that feature the most part of popular indicators. In his book the author introduces indicator as overbought/oversold index with zones showing attenuation of price.