The theory was developed by R.N. Elliott in the 1930’s. Inspired by the Dow Theory and by observations found throughout nature. In Elliott’s model, market prices alternate between an impulsive and a corrective phase on all time scales of trend. Impulses are always subdivided into a set of 5 lower-degree waves, alternating again between impulse and corrective character, so that waves 1, 3, and 5 are impulses, and waves 2 and 4 are retraces of waves 1 and 3. Using Elliott waves, you can learn to identify these patterns and use them to anticipate where prices will go next.
Duration 30 minutes.