What Is Elliott Wave Theory And How To Trade Using It

What Is the Elliott Wave Theory? The Elliott Wave Theory is a technical analysis theory that is used to explain financial market price changes. After seeing and analyzing fractal wave patterns, Ralph Nelson Elliott came up with the theory. Waves can be seen in both stock price fluctuations and customer behavior. Surfing a wave refers to those who attempt to profit from a market trend. A refinancing wave refers to a large, widespread trend among homeowners to replace their existing mortgages with new ones that provide better terms. Understanding the Elliott Wave Theory In the 1930s, Ralph Nelson Elliott proposed the Elliott Wave concept. After being forced into retirement owing to illness, Elliott wanted something to do with his time, so he began analyzing 75 years of yearly, monthly, weekly, daily, and self-made hourly and 30-minute charts across a variety of indices. The notion gained traction after Elliott made an astounding prediction of a stock market bottom in 1935. Since then, it...