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:
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
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. According to Elliott, the journey from a market