Elliot Wave Theory & Trading

Elliott Wave Theory is a method of market analysis based on the idea that the market forms the same types of patterns on a smaller timeframe (lesser degree) that it does on a longer timeframe (higher degree). These patterns provide clues as to what might happen next in the market. According to the theory, it does not depend on what timeframe you are analyzing; market movements follow the same types of patterns. The combination of a motive wave and a corrective wave is the general structure of the complete Elliott Wave cycle. This is illustrated as a structure with a total of eight waves. There is a five-wave advance (motive) in the direction of the trend of one larger degree, followed by a three-wave correction against the higher degree trend. Please remember that this is simply a motive wave and a corrective wave. All markets advance and correct. The Elliott Wave Theory provides specific patterns the market uses to do this, which we will cover below. Still, it all fits within this general cycle structure. Please comment & subscribe ‪@InvestorsTradingAcademy‬