Explain Elliott Wave Theory -

In the 1930s, while the world was drowning in the Great Depression, a quiet accountant named Ralph Nelson Elliott sat in a hospital bed recovering from a severe illness. With no Bloomberg Terminal, no internet, and no computer algorithms, he did something peculiar: he started charting stock market movements by hand.

Think of Russian nesting dolls. Inside every Wave 3 is a full 5-wave pattern. Inside that pattern’s Wave 1 is another 5-wave pattern. It is waves within waves, forever. explain elliott wave theory

Two expert Elliott Wave analysts can look at the exact same chart and one will say, "We are in Wave 3 of a massive bull run!" while the other says, "No, that was Wave C of a correction; the world is ending." In the 1930s, while the world was drowning

As Elliott himself might say: The market isn't just a number. It is a crowd having an emotional seizure—and that seizure has a shape. Inside every Wave 3 is a full 5-wave pattern

This means a 5-wave impulse on a 1-minute chart is actually a tiny piece of a larger 5-wave impulse on the daily chart. And that daily chart is a tiny piece of a decade-long 5-wave impulse.

According to Elliott, the journey from a market bottom to a market top isn't a straight line. It’s a five-act play. Imagine a crowd rushing into a new technology stock. Elliott splits this movement into two distinct types of waves:

Because counting the waves is an art, not a science .