Elliott Wave

Elliott Wave is a technical-analysis method described by Ralph Nelson Elliott in 1938, holding that prices move in a repeating, fractal rhythm of crowd psychology: five impulse waves in the direction of the trend and three corrective waves (A-B-C). The count is bound by three iron rules — wave 2 never retraces 100% of wave 1, wave 3 is never the shortest, and wave 4 does not enter wave 1's price territory — yet the reading itself stays subjective and often allows several valid counts at once.