This is a theory that the financial market is not just the graphics and numbers. Since ordinary people trade in it, they form a “crowd” together that has its own psychology, this is something that drives the market. Elliott claimed that the whole structure of the market has a wavelike character that depends on the mood of traders: either it is enthusiasm, euphoria, decline, depression, etc. He singled out eight types of waves that are continuously repeated, thanks to this knowledge one can predict where the price will go further. The Elliott wave is the name of the directional movement of the market in any one direction. It was he who singled out "the bear market" (see) and "the bull market" (see). Elliott Waves are called "impulsive waves" because they tend to go in the direction of the main trend (see) and give the market a significant momentum a "pulse". To study Elliott Wave theory, you can read "Simplified Elliott Wave analysis. Practical application of a mechanical trading system " by T. Joseph.