Hi Elliott Waver,

Have you ever wondered whether the Wave Principle applies to interest rates?

Here’s what Bob Prechter had to say in Prechter’s Perspective: Conversations with Bob Prechter, Legendary Market Theorist:

"When I first started following interest rates, I figured, 'I’m not going to see wave structures here, because to a great degree, they are manipulated.' I started in 1979, and that was two years into Jimmy Carter’s administration. Chaos reigned in the bond market, and upon examination, it was unbelievable how closely the price of money was following typical Elliott wave structures.

When the anchor of gold was kicked away by Nixon in the early 1970s, the bond market became a boiling pit of mass psychology. It has been a mixing bowl of confidence, anxiety, hope and fear, shifting back and forth as the players try to guess what the government will do and the government tries to guess what the voters want. That is a terrific background for clear Elliott wave patterns."

We’ve been applying the Wave Principle to interest rates ever since.

Explore our interest rates services.

Sincerely,

Derek Bruce
Elliott Wave International