The Elliott Wave Theory

form of technical analysis used to forecast financial market trends. Here's a concise description:

* Core Idea:

* It proposes that market prices move in recurring patterns called "waves," which reflect the collective psychology of investors.

* These patterns consist of impulsive waves (moving with the trend) and corrective waves (moving against the trend).

* Key Concepts:

* The theory identifies specific wave patterns that are believed to repeat, allowing analysts to predict future price movements.

* It's based on the idea that investor sentiment shifts between optimism and pessimism, creating these predictable wave sequences.

* Purpose:

* Traders and analysts use Elliott Wave Theory to identify potential turning points in the market and make informed trading decisions.

In essence, it's a method of analyzing market psychology as expressed in price charts, with the goal of forecasting future trends.