Elliott Wave Theory – Know the basics
The elliott wave theory is predominantly at work in the financial markets. The ever changing psychology of the investors is usually seen as patterns in the form of price movements. The Elliott Wave theory, is in effect a principle that was drafted by Ralph Nelson Elliott. The Elliott Wave theory is a princple that details how certain groups of people tend to behave.
The Elliott Wave Theory suggests the mass psychological swings from pessimism to optimism and back as a form of a natural sequence, thus creating very specific and measurable patterns.
The elliott wave theory is based on the fact that by identify the repeating natural patterns in prices, from a financial aspect, investors can figure out where they are in those repeating patterns today and can therefore predict the future ...