What is Elliott Wave theory？

Elliott Wave theory is a technical analysis approach that tries to forecast financial market trends and cycles by identifying repetitive patterns in market prices. It is based on the idea that market movements follow a specific pattern of five waves in the direction of the trend, followed by three corrective waves against the trend. These waves are further subdivided into smaller waves, creating a fractal pattern. The theory suggests that these waves are driven by human psychology and emotions, and that they can be used to predict future market movements. The Elliott Wave theory is widely used by traders and investors in various financial markets, including stocks, commodities, and currencies.