Elliott wave theory is a theory in technical analysis that is used to describe price movement in financial markets. This theory is a form of technical analysis that helps traders analyze financial cycles. This theory was created by Ralph Nelson Elliott after observing and identifying repeating fractal wave patterns. Elliott wave theory states that market movements are a sequence of population psychology cycles. these patterns are formed according to market sentiment that alternates between bullish and bearish cycles. in this video a sample of an Elliott wave technical analysis is shown.
Of course, Elliot realized that these patterns have no absolute certainty about future price movements, but only help to analyze the future market. In fact, Elliott waves can be used in conjunction with other technical analysis methods, including technical indicators, to identify specific buying and selling opportunities. Traders may have different interpretations of the Elliott wave structure in a market at a given time.