Elliot wave theory has a huge and devoted following - shame the theory has no basis of sound logic that can help you make money!
Let's look at Elliott wave theory in more detail and then look at sensible market analysis.
The theory was named after Ralph Nelson Elliott, who concluded in his book "natures law" that the movement of financial markets could be predicted by observing, and identifying a repetitive pattern of waves.
Elliott's Profound Observation
Elliott came to the stunning conclusion that all natural phenomena are cyclical - and this includes the financial markets. This is true, but we know that anyway - we know that at some time in our lives, we will feel rain when we venture outside, the question is when exactly?
So, markets are cyclical - big deal! What we want from an investment theory, is the probability of the event - i.e. when is it most likely to occur.
Elliott wave theory is an objective investment theory - but there isn't any objectivity in it at all! Elliott Wave DNA http://www.jennreviews.com/elliott-wave-dna Nikola Delic
It's all a subjective interpretation of peaks and troughs, in any time frame you like!
Does this sound a logical predictive theory to you?
Based on rhythms found in nature, the theory suggests that the market moves up in a series of five waves and down in a series of three waves.
The difference between the Elliott wave principle and other cyclical theories is that the theory suggests no absolute time requirements for a cycle to complete - well that's a lot of help.