The Elliott Wave Hypothesis is a theory of technical analysis that attempts to predict future market trends by analyzing market patterns. The hypothesis is based on the idea that market prices move in waves, and these waves can be predicted by analyzing past price movements. The Elliott Wave Hypothesis was developed by Ralph Nelson Elliott in the 1930s, and it is still used by many traders today.

According to the hypothesis, market prices move in a series of five waves in the direction of the trend, followed by three corrective waves against the trend. These waves can be analyzed using various indicators and technical tools to predict future price movements. The Elliott Wave Hypothesis is based on the idea that markets are fractal in nature, and patterns repeat themselves at different time frames.

Despite its popularity, the Elliott Wave Hypothesis is also a controversial theory among traders, and many dispute its effectiveness in predicting market trends.