elliot waves are nothing but the graphical representation of the cyclic behavioural DNA of the psychology of the market.
to understand the why and how of the elliot wave, let's imagine the waves talking. what they say can reveal what they mean and why they are the way they are.
this will help us understand and appreciate the rules behind elliot waves as well.
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what the waves say?
wave 1 = "feel like doing 'it'. let's do it"
wave 2 = "should we have really started doing it?"
wave 3 = "yes, we were right, now stop thinking, stop doubting. go all out and do it good and big. those who missed, pl come along! those who still fear can join us on the way!!!"
(this is why wave 3 is the longest and has to be the longest, otherwise this theory hasn't been satisfied and will have to be)
wave 4 = did we over do? we might have got carried away. shouldn't we, therefore, retrace?
wave 5 = no, we hadn't overdone it. and in the fear of having overdone it, we have still left something undone. let's complete it. and let the last of the laggards come in.
