Technical Analysis Elliott Wave theory

Ralph Nelson Elliott (1871 to 1948)  was an accounting professor who was a mad genius for researching 75 years stock data and discover "Wave" in the market, with having evidence published "The wave principal " in 1938.He believed that a trading market happens in repetitive cycles and he points these cycles for only market traders' emotion or psychology or reaction influences. He discovered some swing point of price and structure a pattern like a wave. Do you learn Dow theory?  Elliott Wave theory is based on Dow theory. He described Fractal (same pattern appearing at every degree of trade ) is the nature of the market.

There were 273 rules and guidelines for Elliott Wave principle. So if you want to know details please read a reference book for wave theory. Elliot believed that market move as cycles or wave and this he called 5-3 wave patterns. First 5 wave patterns are called impulse wave while second 3 wave pattern is corrective patterns. Corrective patterns are called ABC or ABC pattern means one kind of patterns they are. Moreover 21 types of corrective patterns now identify. So the Elliott Wave principle is not so easy as you think. You have to  learn more and more about it. However I hereby show only simple matter of Elliott Wave. Simply learn the following:

*Wave 1 is just sudden a simple wave.
*Wave 2 never goes back to wave 1 completely.
*Wave 3 always bigger than wave 1.
*Wave 4 never same price level of wave 1
*Wave 1,3,5 is always extended waves.

Corrective patterns:
As I wrote above corrective patterns are different types. The majors corrective patters are
*Zig Zag pattern
*Flat pattern
*Triangles pattern

Remember the following facts:

*Wave in wave means when you identify wave 1,2 etc.. Then there may be see a tiny wave into these waves.
*Use Fibonacci retracement in order to forecast future price movement or next wave mean 50% to 78% retracement you should be notice for wave 2 and 4.
*A lot of practice you need to identify correct Elliott Wave.
*Wave 2 & 4 are always short waves.