Elliot's index or waves are very important in determining and predicting the course of the currency based on an analysis of the behavior of a group of traders for many years ...
And the founder of this theory, the genius Ralph Nelson, where he discovered in 1920 that there is a path followed by the financial markets in the movement is more like a circle of a few steps.
This circuit is constantly being repeated and it has been discovered that the influence of investors on external influences such as some news, newspapers or reports is reflected repeatedly on the graph, and on the upward or downward movement of the market and that the movement on the patterns are divided into the so-called waves, Which we spoke about in the name of Elliott Wave Theory.

• Five wave modes and three corrective
  Elliott found that the market moved in 8 waves, the first five waves and the last three corrective waves (ABC).
  This theory can be used on traditional currencies, digital currencies, bonds, gold or oil.
  #First Wave
  The digital currency makes its first move up and this is often done by a significant number of traders (we will say that entering these categories for real reasons) for example because prices have reached low levels (study session) and are considered suitable for purchase at the moment Traders lead to the high price of this currency.
  #wave_second
  At that point many of the traders who entered the first wave began to feel that the current price exaggerated so they started to take profits, causing the currency to fall. But the price did not drop to the starting point, and then started to complete his bullish journey.
  #Third Wave
  These are often considered to be the most long and powerful waves. The currency has caught the attention of many traders who want to enter into a trade. This causes the currency to rise higher and higher and this trend often exceeds several resistors.

Fourth wave

In this wave traders are making a profit again, because the price of the currency for traders has become high or exaggerated and also because many traders are waiting for the currency to drop a little to buy it again.
The # 5 wave
At this point many traders are entering the currency, and this is because of the hysteria of continuous price hikes. People continue to buy for non-objective reasons, and at that point the price is too high and the decline is only a short time because sellers will start their tour and do ABC.
And ABC is a corrective price movement after reaching the highest level when the fifth wave is achieved ...
If we use this article as an example of a bullish currency to explain Elliott's theory, this does not mean that the theory is not applied to falling markets, but on the contrary, Elliott wave theory is applied in both emerging and descending markets.
In the annexes you will find images of Elliott waves, in emerging and falling markets.
As well as download these waves on the statement of the currency bch / btc, which exploded recently price of $ 300 to exceed $ 950 ....