A standard Elliott Wave PDF typically categorizes price action into phases and corrective phases. Core Principles of the Elliott Wave Theory

In trading communities, (a shorthand for mental + emotional ) refers to the psychological state behind wave counting. It’s not an official Elliott term, but it represents the trader’s ability to:

The theory, developed by Ralph Nelson Elliott, posits that financial markets move in repetitive cycles driven by crowd psychology.

Seconds later, the market dipped. Then, it surged upward, breaking the consolidation high. Did I just get stopped out perfectly? he thought, a pang of regret hitting him.

He flipped the page to the section on

"Wave A is the crash," Silas explained. "People think it's just a buying opportunity. It’s not. Wave B is the bull trap—a fake rally that sucks in the latecomers. And Wave C?" Silas made a slicing motion across his throat. "Wave C crushes hope. That’s what happened today. We are likely in a Wave C."