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The Wave Pattern
Elliott's main discovery was that market behavior could be identified and measured through a repeating eight wave sequence, consisting of 5 waves that he called "impulsive," followed by a 3-wave "corrective" sequence.  Impulse waves are labeled numerically 1 through 5, corrective waves are labeled A, B and C, as per the following example:

Barriers are obstacles that get in our way when we are trying to reach some kind of destination or goal. We find them everywhere, in school, work, driving and even in trading. Most will try to overcome these barriers, each time hopefully learning from the experience so as to avoid the barrier the next time confronted by it.

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