Why the Waves on the website?

Why the Waves on the website?

The Elliott Wave Theory was the work of R.N. Elliott, who observed more than a half-century ago that stock market movements unfold in a series of rhythmic patterns which are based on a natural progression of shifts in mass investor psychology. As market participants vacillate between greed and fear, price patterns develop. These price patterns are called “waves”.
I am a practitioner of my own brand of the “Elliott Wave Theory”. I am not a purist but I subscribe to the basic principles behind the Elliott Wave Theory. The Elliott Wave Theory interprets market actions in terms of recurrent price structures. Basically, Market cycles (WAVES) are composed of two major types of Wave: Impulse Wave and Corrective Wave. For every impulse wave, it can be sub-divided into 5 - wave structure (1-2-3-4-5), while for corrective wave, it can be sub-divided into 3 - wave structures (a-b-c).In this fashion the Elliott Wave Theory tracks the ebbs and flows of the market.
The most difficult part of Elliott Wave analysis is correctly labeling and counting the waves, another words trying to figure out what wave pattern you are in and were you are in that wave pattern. Like most forms of investing hind site is always 20/20.