With the help of C. J. Collins, Elliott's ideas received the attention of Wall Street in a series of articles published in Financial World magazine in 1939. This was the first significant work since Elliott's passing. In 1978, Robert Prechter and A. J. Frost collaborated to write the book Elliott Wave Principle. The underlying forces behind the Elliott Wave Theory are of building up and tearing down. The basic concepts of the Elliott Wave Theory are listed below.
Action is followed by reaction.
A 5-3 move completes a cycle. The underlying 5-3 pattern remains constant, though the time span of each may vary. Waves 2 and 4 are called corrective waves. Waves a, b, and c correct the main trend made by waves 1 through 5. The main trend is established by waves 1 through 5 and can be either up or down.