How to use Elliott Wave Theory to forecast stock market trends?

@elda.osinski 

Elliott Wave Theory is a technical analysis method that uses a series of waves to analyze and forecast market trends. Here are some steps to use Elliott Wave Theory to forecast stock market trends:

1. Identify the current wave pattern: The basic premise of Elliott Wave Theory is that markets move in a series of five waves in the direction of the main trend, followed by three corrective waves. By identifying the current wave pattern, you can determine where the market is in its trend.
2. Use Fibonacci levels: Elliott Wave Theory often employs Fibonacci retracement levels to predict potential reversal points in the market. These levels can help you identify key support and resistance levels for the market.
3. Determine the target price: Once you have identified the current wave pattern and potential reversal points, you can use Elliott Wave Theory to determine a target price for the market. This target price is typically calculated based on the length of the previous wave and can help you determine potential future price movements.
4. Monitor the market: As the market moves, continue to monitor the wave patterns and adjust your analysis accordingly. By staying vigilant and analyzing the market in real-time, you can better predict and capitalize on potential trends.
5. Combine with other technical analysis tools: While Elliott Wave Theory can be a powerful tool for forecasting market trends, it is also important to use other technical analysis tools and indicators to confirm your analysis. By combining Elliott Wave Theory with other techniques, you can strengthen your forecasts and make more informed trading decisions.