This book introduces you to the new science of socionomics and shows you how history unfolds not as cycles, but as form-driven fractal waves. Learn a radical and bold application of the Wave Principle.
In this volume, Robert Prechter proposes a new science called socionomics. It's the study of how humans interact, and how that interaction determines the course of the economy, culture and history.
According to Prechter, the purpose of this book is to establish the idea that in humans, an unconscious herding impulse drives social mood trends and changes that are specifically patterned according to a natural growth principle and which in turn is the engine of cultural expression and social action.
In the 1930s, R.N. Elliott (1871-1948) discovered that price changes in stock market indexes produce a limited number of definable patterns, or waves, that are robustly self-affine at different degrees, or sizes, of trend. Elliott called this phenomenon "The Wave Principle."
This model, covered in the first three parts of this book, has produced a substantial documented success in both accounting for and forecasting stock market trends. Stock market indexes are important because they record man's valuation of his own productive enterprise. The fact that this valuation follows an intricate Fibonacci-based pattern indicates that there is a single essential cause of that valuation, the social mood that underlies it, and the enterprise that results from it.
Part I: An Introduction to the Idea of the Wave Principle
Part II: Validating the Wave Principle by its Own Operation
Part III: The Basis of the Wave Principle in Biology, Psychology, and Sociology
Part IV: An Introduction to Socionomics
Part V: Further Afield
Robert Prechter began his professional career in 1975 as a Technical Market Specialist with the Merrill Lynch Market Analysis Department in New York. He has been publishing The Elliott Wave Theorist since 1979 and is the president of Elliott Wave International. He is also Executive Director of the Socionomics Institute, which studies social mood and its impact on social action, including the stock market and the economy. Prechter has been named "one of the premier timers in stock market history" by Timer Digest, "the champion market forecaster" by Fortune magazine, "the world leader in Elliott wave interpretation" by The Securities Institute, and "the nation's foremost proponent of the Elliott wave method of forecasting" by The New York Times.
Social mood trends represent changes in human attitudes. There is compelling evidence that changes in social mood trends precede changes in history and culture, indicating that the former causes the latter. This orientation has allowed successful forecasting of financial, economic, political and cultural events. The relationship of the pattern to Fibonacci mathematics suggest that the Wave Principle is another manifestation of a type of growth pattern found throughout nature in processes of growth and decay, expansion and contraction. The Wave Principle of Social Behavior is your key to unlocking the secrets of this powerful forecasting engine.