Elliott wave theory
Elliott wave theory interprets market movements as recurring wave patterns associated with investor psychology. Its basic model describes five-wave motive sequences and three-wave corrections at different scales, but assigning wave counts is subjective and does not reliably establish future price movements.
On a hypothetical chart, an analyst labels a rise as a completed motive sequence, while another sees an unfinished pattern, illustrating uncertainty in wave counts.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure