The Forex market has a characteristic that makes it kind of special. It oscillates constantly during the whole trading session (a session that is as long as practicable an entire week); in other words it has waves. You can see this character easily by looking at any of the forex charts that are easily available from the web. As the clock ticks, the prices of the different currency pairs oscillate in particular patterns that seem to have a special repetitive behavior imbedded, you feel you could almost guess the next oscillation, or at least that's what you think from your first impression. You can not help thinking there is a possible use hiding behind those oscillations that can make forex trading an easier task.
You should learn that you are not the only forex trader wishing for a way to use those Oscillations as a tool for a more profitable Forex trading. There have been many others before you, but there is one that really found that useful tool behind the waves others were only wishing or his name was Ralph Nelson Elliot and he also observed that the market had strong trends that appeared to follow a repetitive pattern in all the different time frames. After analyzing a great number of charts he discovered in the late 1920's that the markets move in a repetitive manner that is far away from being a total chaotic behavior. In other words he found he could predict the next movement of the markets with great accuracy by using his recently created analysis.
What he found is what is known now as Elliot waves. These waves are based on his discovery that showed that the wave patterns on the markets had a fractal nature. This means that the patterns not only repeated with time but that in a given period of time the characteristic wave pattern would repeat at different scales (days, hours, minutes).
Source by Adrian Pablo