Elliott Wave Theory or Wave Development takes place in two distinctive phases.
As we know that the first phase of 5 waves structure known as Motive Waves.
Furthermore, the question arises in mind that why it is motive waves because it moves in one direction of trends like up and downtrend.
And they move in continuation direction either the upside or downside continuation direction.
That the Second phase of 3 waves structure known as Corrective Waves.
Now I am explaining Corrective Waves and maybe question takes place in your mind that why it is corrective waves are those waves they simply correct motive waves in one reversal direction of trends like up and downtrend.
So remember that motive waves are the form of five waves structure and corrective waves are the form of three waves structure and they put together in form of the complete eight waves cycle.
Furthermore, as I have explained that motive waves (Five Waves Structure ) and they labeled as wave-1 to wave-5.
So, as I have explained that corrective waves (Three Waves Structure) and they labeled as the wave – a wave – b, and wave – c.
Actually, we only identify at any given point of time about market somewhere in this five wave.
and three wave cycle and that is known as the complete cycle of eight waves.
The trend of the market won’t be out of five waves that is a continuation and three waves that are the reversal.
Furthermore, you have to find your direction within such eight waves structures.
If you did it mean you got your direction of doing trade either selling market or the buying market.
I will continue more details about Elliott wave theory in my next topic.
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