Elliott Wave Theory is a way to organize the market into waves and sub - waves . This strategy is useful for identifying patterns in several timeframes . These structures usually follow Fibonacci Retracements . The main structure is a five - wave patterns ( or impulse ) for a rally or drop . The ABC ( or consolidation ) pattern Usually acts as the next wave movements .
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.