"What exactly is the Elliott Wave Theory? In essence, it is a theory of price movement which states that the price of any given stock/commodity/currency pair in a free market will travel in wave-like advances and recessions, in a semi-cyclical fashion. Simply put, it holds that prices of actively traded securities move in wave-like motions in an alternating pattern that normally involves three steps forward for every two steps back." http://www.binaryoptions.education