One of the best known and least understood theories of technical
analysis in forex trading is the Elliot Wave Theory. Developed in the
1920s by Ralph Nelson Elliot as a method of predicting trends in the
stock market, the Elliot Wave theory applies fractal mathematics to
movements in the market to make predictions based on crowd behavior.
In its essence, the Elliot Wave theory states that the market – in
this case, the forex market – moves in a series of 5 swings upward and
3 swings back down, repeated perpetually. But if it were that simple,
everyone would be making a killing by catching the wave and riding it
until just before it crashes on the shore. Obviously, there’s a lot
more to it. http://www.googleonlineearnings.info