The Elliott Wave Theory is a strategic approach traders use in the financial markets. Essentially, it serves two essential functions. Firstly, it’s a form of technical analysis, which means traders use it to study and interpret market data. Secondly, it focuses on identifying patterns in market cycles. Doing so helps traders predict how these markets might behave in the future, allowing them to make more informed decisions about when to buy or sell. Created by Ralph Nelson Elliott (28 July 1871 – 15 January 1948), this theory examines repeating fractal wave patterns in stock market trends and consumer actions.
