Robert R Prechter: Speaks on Socionomic Theory: An Alternative to EMH

One of technical analysis’ great legends, and a slick speaker, Robert Prechter enthralled his audience – even the sceptics among them – with his presentation at IFTA’s annual conference held in London in 2014. As part of our effort to make the subject available to a wider audience, here is another of our educational videos which STA members and non-members can all view at their leisure; please feel free to share it.

But before you dive into the presentation have a quick read about his background, as published in Elliott Wave International’s website:

Like Bob, I too took an early interest in financial markets, commodities in my case rather than Wall Street, because my Dad and his South American cronies were heavily involved in farming while attempting to ward off rampant inflation – and having a bit of a dabble on the side.

In his talk Mr Prechter postulates that, as yet, there has been no proper challenge to the efficient market hypothesis (EMH). Though behavioural finance has questioned the rationality of human decisions, they have not delved into the other side of the equation explaining how exogenous causes predict moves in financial markets.

In a series of very long-term charts he shows how interest rates, war, peace, political parties, oil shocks and even terrorism may be bullish, bearish, or do nothing to stock markets and the price of gold. In other words, there is NO correlation – and you might as well get to grips with this idea – pronto!

The link is here:

And if the video has prompted you to dig deeper, his latest book:

The Socionomic Theory of Finance by Robert R Prechter (ISBN: 9780977611256) is available at the Barbican Library, London which holds hundreds of books on technical analysis.

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The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA.

The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.

None of the information on the STA’s blog constitutes investment advice.

About Nicole Elliott

Nicole Elliott

A graduate of the London School of Economics and Political Science (BSc Social Psychology) Nicole Elliott has worked in banks in the City of London for the last 30 years. Whether in sales, trading or forecasting technical analysis has always been the bedrock of her thinking. Key expertise lies within all areas of treasury: foreign exchange, money markets, fixed income and commodities.

She has also added to the body of knowledge of the industry writing the first western book on Ichimoku Cloud Charts. Strong media links and a cult following are due to her prescient calls on the markets and often entertaining format.

Nicole can be contacted at

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