Elliott Wave Principle (EWP)
Elliott Wave Theory glossary · Core Axioms & Motive Wave Rules
Definition
A market analysis framework based on the observation that prices move in recognisable, repeating patterns driven by mass psychology, rst described by Ralph Nelson Elliott in the 1930s.
Elliott Wave Principle (EWP) in plain English
This is just the shorthand name (EWP) for the same framework: the observation, first written down by Ralph Nelson Elliott in the 1930s, that market prices trace out recognizable, repeating patterns driven by the mood swings of the crowd rather than pure chance. The idea is that fear and greed rise and fall in a rhythm, and that rhythm shows up as familiar wave shapes on a price chart. When traders say 'EWP,' they simply mean this whole way of reading the market.
Also called: EWP
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