🔘 The market moves in organized waves, not randomly
The market is not chaos; it is a dynamic system that operates in recurring waves that adhere to mathematical and psychological laws. These waves reflect the collective emotions of traders, from fear to greed, and from hope to panic.
🔘 The five and three rules govern market movements
According to Elliott Wave Theory, each market cycle consists of five upward waves that reflect the main trend, followed by three downward waves representing the correction. This pattern repeats across all time frames, from minutes to decades.
🔘 The market is part of a larger natural system
Like tides or the growth of trees, the market follows natural laws. Every price movement has a reason and roots in collective psychology, and nothing happens by chance.
🔘 Waves repeat within other waves
Each major wave consists of smaller waves, which in turn divide into even finer waves. This means that the market operates in a fractal pattern, repeating endlessly regardless of how small the time scale.
🔘 Corrective waves are the hardest and most dangerous
Downward waves (corrections) are more complex and volatile than upward waves, but they provide the best entry opportunities for traders who understand their psychological movements.
🔘 The market is a mirror of traders' emotions
Each wave expresses a collective psychological state:
- Wave one: The beginning of cautious optimism.
- Wave three: The peak of greed and enthusiasm.
