STA Blog

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.

Posted in Finance, Markets, STA news, Technical Analysis, Technical Analysis Courses, Technical Analysis Training, Trading, Trending
Tags: , ,

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.

Not ready to join? Stay Updated

If you want to learn more about membership and being part of the STA, sign up for our updates so we can keep in touch.


Monthly Meetings

The STA holds 11 monthly meetings in the City of London, including a summer and Christmas party where canapés and refreshments are served.


Latest Videos

As a service to our members, many of whom are unable to attend all our monthly meetings, we have been making videos of meeting presentations for several years.


STA Libraries

The STA has an extensive library of classic technical analysis texts. There are over 1000 books in the collection. It is held at the Barbican Library with a smaller...


Market Technician

Latest research and news

More Info

World Class Tutors

STA Course Lecturers

More Info


Be part of something special

More Info


View latest posts

More Info