Elliott Wave Theory

A form of technical analysis proposing that markets move in repetitive wave patterns driven by investor psychology. An impulse move consists of 5 waves (3 up, 2 corrective); a correction consists of 3 waves (A-B-C). Three invalidation rules: Wave 2 cannot retrace more than 100% of Wave 1; Wave 3 cannot be the shortest impulse wave; Wave 4 cannot overlap Wave 1's price territory.