Discusses the thinking in physics and sociology prevalent in the 18th, 19th, and 20th century, and how Ralph N. Elliott rejected the economic/social models of Marx, Keynes, and even monetarism. Also discusses how Elliott's ideas are so fundamentally different from the Efficient Market Hypothesis, the prevalent market behavior model today.

Discusses the concepts of non-linearity, interdependence, chaos, thermodynamics, and human organization.

Discusses determinism and free will.

Manias aren't just big bull markets. There are several special characteristics of manias that the author describes in detail.

Normal bull markets are driven by a feedback mechanism that produces a fractal pattern of advances and setbacks. Manias are preceded by long-term bull markets that have repeatedly gone through advances and setbacks. The decline that follows a mania is not just a normal setback, it is the "depressive" part of the manic-depressive swing.

Manias are characterized by broadening public participation and overvaluation by conventional measures. Other metrics characterizing a mania are duration and price extent. Manias are often supported and encouraged by government officials. Lastly, a mania in one asset can spill over and create a bubble in another asset.

Prechter speaks of manias as if they have a particular 'fingerprint', so to speak. Recently, a UCLA physicist has separately developed mathematical algorithms with which he can identify bubbles in advance by their 'statistical signature'.

Source: Elliott Wave International

This is a reprint of a section of the original classic "Securities Analysis". This section was cut from later editions. The authors did not realize at the time that this section, describing "new era" thinking of the 1920's, would be relevant and applicable many decades later.

Valuation metrics change through a mania. When a bull market is young, steady dividend payers are sought. As the mania progresses, earnings are valued, then the leap is made from valuing real earnings to valuing hypothetical future earnings and earnings trends.

Discusses a sideways (corrective) pattern that might be construed as an expanding triangle plus a contracting triangle. Describes it as a pattern that overlays existing forms within the Wave Principle. Discusses in particular a large packet wave, that expanded for eight years (1966-1974) and contracted for eight years (1975-1982). Discusses and illustrates the packet wave in the Dow Jones Industrial Average in the 1999-2001 timeframe.

Discusses the sunspot research conducted in 1934 by Shaffner and Garcia-Mata, along with that of Charles Collins. Charts illustrate research from 1900 through 2000.

Is it an art or science? Discusses the importance of thinking technically. Argues that successful forecasting is probabilistic, and trying to achieve perfection will ruin your chances of success.

This was a speech presented to the Market Technicians Association in 1994. Discusses the fall from grace of the "technical" part of technical analysis.

Argues that the problem with lists of rules is that they only work in certain contexts. Discusses the importance of developing a method and having the discipline to the follow that method. States that expecting perfection and that blaming errors on "conspirators" hinders success. Argues that paper trading is not a substitute for hardboiled experience.