Back in the 1930's an Accountant and Business expert named Ralph Nelson Elliott discovered a principle that can be used to analyze how the financial market work, this principle was based on studying the psychology of investors in the market.
Elliott used wave patterns to describe how investors behave in the financial markets. the first waves pattern he called impulse waves and the second waves he called corrective wave.
This wave patterns could be used in either in a bear or bull market. Although, it was originally used to analyze the financial markets, this principle could also be used in the Forex market. it could be used to identify a new market trend formation.
this is just a brief introduction to the intensely broad technical analysis subject called Elliott wave principle. there are different aspects of this principle i will discuss later.
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