Prechter's Perspective

Prechter's Perspective, based on Elliott Wave theory, suggests that financial markets move in predictable patterns driven by investor psychology. These patterns, called waves, reflect collective emotions like optimism, hope, fear, and panic, causing markets to fluctuate in recognizable cycles. Prechter believes understanding these wave patterns can help investors anticipate future market movements, identifying whether the market is in a bullish (rising) or bearish (falling) phase. Essentially, his view is that markets aren't random but follow human behavioral patterns, and recognizing these can improve investment decisions.