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# The fundamentals of Elliott Wave Theory

The essence of Elliott Wave Theory is that: cashbackforexexness Directional price movement cashback forex one direction is called a wave (when overall there is an up or down, disregarding the internal correction trend, i.e. when there is a trend there is also a wave); ● Rising forex rebate club forexrebateclub followed by falling waves, cashbackforexbroker falling waves are always followed by rising waves, i.e. the movement of one wave is always corrected by the movement of another wave; ● Waves 1, 3, 5 waves A, C and their subwaves (1), (3), (5), (A), (C) are called pushing waves, because they always move in the direction of basic ascent or basic correction, i.e., they give a push to the higher wave; ● waves 2, 4, B and (2), (4), (B) are correction waves, because they move in the opposite direction to the pushing wave, i.e., they give a push to the higher waves; ● the rising waves 1, 3, and 5 consist of 5 smaller waves (1), (2), (3), (4), and (5); ● the falling waves 2 and 4 consist of 3 smaller waves (A), (B), and (C); ● the falling waves A and C consist of 5 smaller waves (A), (B), (C), (D), and (E); ● the rising wave B consists of 3 smaller waves (1), (2), and (3); ● waves of any level are subwaves of waves of a larger level In our example, waves 1, 2, 3, 4, and 5 are 5 consecutive waves that can be represented by I It is possible to observe how long these or those waves might be, how their size would be in relation to their neighbors, and what shape they would have The ascent consisting of 5 waves has just ended, and then 3 modified waves (A) begin to form , (B), (C) regardless of the degree of trend pressure, which will always develop along the main 8-wave cycle (3) or (5) waves may be broken into smaller pieces Of course, our dreams may also be crushed by the harsh reality if, instead of studying, we watch TV endlessly…… but thats not what were talking about now Were talking about that This smashing (we are still talking about waves) depends on the direction of motion of the larger wave it depends on They are decomposed in this way: ● All propulsive waves (1), (3), (5), (A), (C) are decomposed into 5 smaller level waves; ● Waves (2), (4), (B) are decomposed into 3 waves of smaller level If we use the rule of decomposition of higher level waves into smaller level waves and the above described If we use the rule of decomposition of higher level waves into smaller level waves and the theoretical assumptions described above, then we will always know where we are in the market wave structure at the current moment, along with Forex prices, banks, brokers, investors and other traders. This task can be accomplished as follows: ● If we observe 5 descending waves in the case of an upward general trend, we can assert with a fair degree of certainty that we are now encountering wave (A) of the 3 descending wave structure ((A)-(B)-(C)). This means that waves (B) and (C) are waiting for us, i.e. the downward trend will continue ● In a bear market, the downward trend should start after the 3 ascending waves, while the ascending wave consisting of 5 waves predicts that a larger price climb will follow