Elliott Wave Theory holds that market prices move in repeating cycles driven by crowd psychology — a five-wave impulse in the trend direction followed by a three-wave correction. These patterns repeat across every timeframe.
How traders use it
- The basic cycle is five waves up, three waves down.
- Patterns are fractal — they repeat at every degree.
- Wave counting is subjective; use it with confirmation.
See it in dtcharts
Label waves and Fibonacci levels on live charts in the dtcharts terminal with the Elliott Wave and Fibonacci tools.