Ralph Nimitz Elliott
Ralph Nimitz Elliott (June 28, 1871 - January 15, 1948) was an American stock investor and business executive. He was the son of a sea captain and a newspaper publisher. Elliott was a pioneer of economic and financial analysis. He developed the Elliott wave theory to explain the movement of stock prices.
Born in Galesburg, Illinois, Elliott first entered the business world in 1899 as a railroad bond salesman. He worked as a trader in the New York Stock Exchange for five years before joining the staff of a Wall Street Stock brokerage firm. In the 1920s, he began to study the wave of stock price behavior.
He eventually formulated a theory that he believed explained the action of stock prices. His wave theory claims that stock prices are impacted by an inner force known as the “underlying wave” which can be determined by examining the stock’s technical and fundamental factors. Elliott believed that this wave was comprised of eight stages which could be recursively analyzed to provide direction for future market movements.
Elliott’s work focused primarily on the patterns of stock price movements. He believed that “the underlying wave of the market is a set of repeating patterns that forms its own rhythm, which allowed investors to safely navigate the stock market and gain an edge. This theory is known as the Elliott wave theory, which has been adopted and adapted by traders and Wall Street investors around the world.
The Elliot wave theory can be applied to stocks, commodities, options, bonds, and other assets. Over time, investors have gained knowledge of Elliott’s methods, learning to predict price movements with greater accuracy.
Elliott’s fundamental analysis was also essential to any investor’s success in the stock market. His fundamental analysis consisted of reviewing stock fundamentals such as company earnings, dividends, management, and financials. He believed that strong financials were the single most important factor when it comes to predicting stock prices.
Ralph Nimitz Elliott’s contributions to the world of financial markets and investments have made him an important figure in the history of stock market analysis. His wave theory and fundamental analysis opened the door for investors to gain larger returns with greater accuracy. His works still remain an important tool for investors today.
