What is Elliott Wave?

Hi, it is glad to have you here in this blog. In this moment I would like to write about - What is Elliott wave? - As you know the Elliott wave principle is widely used by expert traders around the world to help them in reading trends and market sentiments. I am sorry if there are any grammar mistakes in my article because English is not my mother language, I try to do the best I can.


The Elliott wave trading is a wave pattern in Forex or stock trading technical analysis to identify and read the market price trends by determining tops and bottoms in market price. An expert accountant, Ralph Nelson Elliott was born in 1871, he introduced the basic principle and made technical method. Ralph Elliott said that prices move in certain patterns, which right now call Elliott wave trading. Ralph Elliott wrote this trading pattern system of market price fluctuation in a magazine around 75 years ago in Financial World, and then Robert Prechter popularized this Elliott wave trading pattern.

This Elliott wave principle determined a fixed wave pattern to market price fluctuations in the Forex market, commodity market, Forex trading market and etc. Elliott wave method has 2 kinds of waves: impulse & corrective. Impulse waves trade in the way of the bigger degree wave, and corrective waves move in reverse. In other words
if the bigger trend degree is bullish, impulse are bullish and corrective wave are bearish and if the bigger trend degree is bearish, impulse are bearish and corrective wave are bullish.