The Concept of Elliot Wave Analysis

Elliot Wave analysis is a kind of theory which is using to foresee the price direction of any currency pairs or commodities on the global forex market. Elliott waves were discovered by Ralph Nelson Elliott in 1930. This pattern is an expression of the reciprocal interaction of the process of buying and selling as investors. You can see that it is repeated many times in the same formation. It means these movements become a behavior in a long time period on the market. Investors in the financial market reflect the feelings of Elliott wave series repeated.

This formation occurs from the 5 and 3 wave motion. The number 5 trend is the main trend of this formation, and we can say 3 will be the correction wave. The trend is moving in the direction of the main wave is called wave 5, and with the numbers in the charts are determined. 3 waves moving in the opposite direction of the train of waves into waves that are called is determined by means of the letters on the charts. The period will be completed after completing the 5 and 3 waves in the determined time period in a market.

Elliot Wave Analysis as technical method is one of the most popular methods used by analysts. This method for you to use in your daily operations, you should be able to distinguish primarily wave sequences.