Elliott Wave Theory was developed by R.N. Elliott and popularized by Robert Prechter. This theory asserts that crowd behavior ebbs and flows in clear trends. Based on this ebb and flow, Elliott identified a certain structure to price movements in the financial markets. The article serves as a basic introduction to Elliott Wave Theory. A basic 5-wave impulse sequence and 3-wave corrective sequence are explained. While Elliott Wave Theory gets much more complicated than this 5-3 combination, this article will only focus on the very basics.
Don't think that just studying the wave will make your an Institutional Shark. You need to learn the strategies in between the waves, so you could implement the goal.
(http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:elliott_wave_theory)
