noobie question: Why does Mish use E-wave counts?

[AutoDas]

Can someone explain this data to me? It doesn't seem very Austrian to calculate profit based on a formula of human action.

http://globaleconomicanalysis.blogspot.com/2009/03/another-bear-market-rally-or-something.html

[Epic]

Cause markets are composed of humans, and humans take into account psychological factors like market momentum. So the markets have some degree of hysteresis - markets are somewhat path dependent.

Austrian economics isn't really an *investing philosophy* so I don't think there is a party line regarding E-wave theory - but I think an economic school that is the study of human action will also take into account psychological factors that humans use when trading as well as the empirical history of market movements.

[Live_Free_Or_Die]

Quote from that link:

In other news, I am announcing I have $10 billion in my bank account except for the portion of the $10 billion I do not have.

So true lol.