Elliott Wave Theory

Fiabilité : ★★★★★

Markets move in cycles of 5 impulsive waves followed by 3 corrective waves. Complete framework for sentiment analysis.

In detail

Developed by Ralph Nelson Elliott in the 1930s. Structure: waves 1, 3, 5 in trend direction, waves 2, 4 corrective. Then ABC corrective. Each wave is itself made of fractal sub-waves. Powerful but subjective — many analysts see different waves on same chart. Combine with Fibonacci (waves often respect Fib ratios).

🎯 How to trade

Identify position in cycle. Enter at start of wave 3 (usually longest). Avoid trading against main trend. Wide stops as theory tolerates error.

#theory #fibonacci #classic