Quite simply, markets move up then have a correction-rebalancing in time and price-and all things being healthy the market trends again then rebalances again by having a correction, a trend then a correction and so on. Of course there are varying degrees of these two actions and they both keep expanding as the market develops and grows. It’s up to the trader to be able to recognize the beginning, middle and end of a degree of trend and correction.
Original text: Trading ASX CFD’s Stocks - Elliott Wave, Fibonaaci Analysis