Elliott Wave Theory

Elliott Wave Theory - cyclic theory fractal The theory is based on the cyclic behavior of price movement put forward by accountant Ralph Nelson Elliott in his book "The Law of Waves" (1938) and widely used by traders all over the world to predict future quotations of a selected instrument. The theory is based on the thesis that all price phenomena on the market are cyclical.

Elliott, in his work, drew attention to the fact that all price movements in the market can be conditionally divided into eight sub-waves, which behave similarly in each structure. The entire theory, which is used by traders, was based on this statement. They independently determine the current Elliott wave phaseThe results are used to make appropriate plans for exchange trading.

The theory can be used when speculating on any freely traded asset, liability or commodity (stocks, bonds, oil, gold, etc.), at various timeframes.

Feature Elliott waves are the complexity and subjectivity of their application for price forecasting, so beginners in the market rarely use it in their analysis.