Where Did the Wave Theory Come From? Ralph Nelson Elliott is the
father of the Wave Theory, which is commonly called and more
accurately described as the Elliott Wave Principle. Born on July
28, 1871 in Marysville, Kansas, Elliott reached his ultimate
achievement late in life by a circuitous route. After a long
career in various accounting and business practices, R.N.
Elliott was forced into an unwanted retirement at the age of 58
due to an illness contracted while living in Central America.
Needing something to occupy his mind while recuperating, he
turned his full attention to studying the behavior of the stock
market. The next day, Thursday, March 14, 1935, was the day of
the closing low for the Dow Industrials that year. The 13-month
“correction” was over, and the market immediately turned to the
upside. Two months later, as the market continued its upward
climb, Collins agreed to collaborate on a book on the Wave
Theory. The Wave Principle was published on August 31, 1938.
During the early 1940s, the Wav