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General TradingE
Elliott Wave Theory (EWT)
Elliott Wave Theory is a technical analysis framework that identifies recurring wave patterns driven by crowd psychology. It proposes that markets move in predictable cycles of five impulsive waves followed by three corrective waves, reflecting shifts between optimism and pessimism.
Example
“Using Elliott Wave Theory, the trader counted five completed impulse waves on the S&P 500 weekly chart and anticipated a three-wave corrective pullback before the next bullish cycle began.”