The Elliott Waves theory was developed long time ago by Ralph Elliott and it was based on his interpretations on the stock market. He was trying to find similar moves/patterns the market made in order to interpret, based on those patterns, future prices.

Perhaps the best part of the whole Elliott Waves theory comes from the fact that it is the only trading theory that exists that takes into consideration the time element. This means that, after mastering it, one will be able to tell not only where price is going, but also when the price is going to go to that specific level.

As a starting point into the Elliott Waves, the very first thing to know is how to divide different moves markets make. Elliott divides market moves into impulsive and corrective waves. That’s it! No other classifications or something else, only these two categories.