Elliott Wave Theory

In markets, progress ultimately takes the form of five waves of a specific structure. Waves (1), (3) and (5) actually affect the directional movement. Waves (2) and (4) are countertrend interruptions. The two interruptions are apparently a requisite for overall directional movement to occur.

The forex market is always somewhere in the basic five-wave pattern at the largest degree of trend. Because the five-wave pattern is the overriding form of market progress, all other patterns are subsumed by it.



What time frames does the wave work?

The Wave may be applied in all time frames. Waves come in degrees, the smaller being the building blocks for the larger. Waves link together to form larger versions of themselves, and they also link together to form the same patterns at the next larger size, and so on. The figure above shows how waves may be subdivided to establish different degrees of trend.
Some of the largest wave patterns span hundreds of years, while some of the smallest span a few hours. Therefore, the Elliott Wave theory is useful for forecasting market movements in all time frames.

Power by Elliott Wave Theory,