Technical Analysis―Elliott Wave Basics
Figure 1. Long-term Elliot Wave analysis posted in 2019 (courtesy: Elliott Wave Trader ) Elliott theorized that public sentiment and mass psychology move in 5 waves within a primary trend and 3 waves within a counter-trend : [1] Once a 1-to- 5 wave move in public sentiment has completed, then it is time for the subconscious sentiment of the public to shift in the opposite direction, which is simply the natural cycle within the human psyche, and not the operative effect of some form of "news." Elliott Wave Analysis In [1], Avi Gilburt describes Elliott Wave analysis succinctly in this way: I have not found any other analysis methodology which provides an understanding of market context which exceeds that of Elliott Wave analysis. Moreover, Elliott Wave analysis does not provide any 100% guarantees . Rather, it provides us with probabilistic expectations based up...