The Elliott wave principle was established by R. N. Elliott and was first published in a series of articles in Financial World in 1939. The basis of the Elliott wave theory developed from the observation that rhythmic regularity has been the law of creation since the beginning of time. Elliott noted that all cycles in nature, whether of the tide, the heavenly bodies, the planets, day and night, or even life and death, had the capability for repeating themselves indefinitely. Those cyclical movements were characterized by two forces: one building up and the other tearing down.

The principal part of the theory is concerned with form or wave patterns, but other aspects include ratio and time. In this case, pattern ...

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