what are elliott waves

Elliott Waves, developed by Ralph Nelson Elliott, are a form of technical analysis used to predict market trends by identifying recurring wave patterns. Based on the theory that financial markets move in repetitive cycles. It of five-wave impulsive movements followed by three-wave corrective phases. This pattern reflects the collective psychology of investors, alternating between optimism and pessimism. Traders use it analysis to forecast potential market reversals and continuation points, helping them make informed trading decisions. By recognizing these wave patterns, traders can anticipate future price movements and optimize their entry and exit points. Understanding Elliott Waves provides valuable insights into market behavior and enhances the accuracy of technical analysis. Learn how to apply principles to your trading strategy to improve prediction accuracy and trading outcomes.