Elliot Wave Theory in Forex and Stock Trading
Broadly speaking, the theory presented by Mister Elliot is that the stock market is thought to behave in a chaotic or erratic manner even though it is not and the trading patterns on the market always move in repetitive cycles. Upward and downward price increases are more caused by a set of traders’ psychology and this recurring increase is then called Mister Elliot as Wave or Wave. And Mister Elliot states that the movement of these waves will move repeatedly to form a similar pattern . And if you are able to identify where your position is in this Elliot Wave then you can predict where the price will go next. Wow! if this is true then you will become a monster in the world of commerce.
The most important and important thing to know about Elliot Wave is that they are fractals as well which when viewed in a shorter time frame will form Elliot Wave as well as the same as Elliot Wave with a longer time frame.