Markets are fractal. Fractal markets mean that markets are identified by changes in behavior. That is where trading opportunities best lie. One of the ways to forecast changes in behavior based on past behavior and price is the Elliot Wave Theory.
Should You Trade Elliot Wave?
Elliot wave theory states that prices move in “waves” which are nothing more than the direction in which a price is heading. This tool allows you to categorize move into 3 with trends or impulse moves and two corrective moves or retracements before price likely changes its underlying structure.
Here is a non-specific chart on what Elliot Wave looks like: