The Elliott Waves Concept
Elliot waves concept is a powerful concept of the financial markets. It has been invented by R. N Elliott who identified that the financial markets move in waves.
R. N. Elliott has ovserved that the financial markets during a bull markets moves up in a 5 wave pattern, 1st wave up then 2nd wave down then 3rd wave up then again 4th wave down and finally the fifth wave down. He also observed that after an upmove the market corrects in a 3 wave downmove, A-B-C.
Elliott waves are not easy to understand and it needs consistent practice and knowledge to identify the wave patterns correctly. There are many software like Advanced Get OR Esignal, Alpha Omega plugin for Metastock, Elwave, MTPredictor etc that can calculate elliott waves automatically. In my next posts I shall try to discuss advanced concepts of the elliott wave theory. You can comment your questions below the post.