#الدرس 12 in trading: Waves #إليوت (Elliott Waves) - A Brief Introduction

Elliott Waves are a theory used to analyze financial markets through psychological patterns that recur in the behavior of traders. The theory states that the market moves in *waves*, which reflect the state of optimism and pessimism among investors.

Types of waves:

1. Impulse Waves:

- Composed of 5 waves (1, 2, 3, 4, 5).

- Move in the direction of the overall market trend.

- Wave 3 is often the strongest.

2. Corrective Waves:

- Composed of 3 waves (A, B, C).

- Move against the overall trend.

Benefits of Elliott Waves:

- Accurately identify entry and exit points.

- Predict the end of a trend or the beginning of a correction.

*Important Information:*

The theory does not always work automatically and requires experience and practice to accurately distinguish the waves.

In the next lesson, God willing, we will take a practical example of Elliott Waves.