The Elliot wave theory was developed by the Ralph Nelson Elliot in 1930s. It is believed that the most hedge fund managers, portfolio managers, Institutions etc. are using this technical tool to know the financial market cycle and the trend of the market.The Elliott Wave Principle posits that collective investor crowd psychology.
It is based on the 5 impulsive waves and after the completion of impulsive waves market correct from wave 5 for a correction, which will move in 3 waves.
The impulsive wave can be on the upside or downside after the completion of Impulsive wave price moves against the Impulsive waves.
There are few principle rules for impulsive waves and correctives waves which will help you to know the stage of micro and macro-economic.
Few trader uses Fibonacci retracement or extension to know the exact levels for entry and exit.
For the depth knowledge about Elliot Waves Join NIFM Technical Analysis offline Course. Call NIFM 99103 00590, www.nifm.in
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