What is IBFX-Waves?

IBFX-Waves is a custom indicator that is based upon the Elliott Wave Theory—a method of technical analysis that has been popular in various financial markets since the mid-1970s. Traders in the US stock market have given particular attention to the theory’s belief that market trends and crowd behavior (particularly the crowd’s tendency to push for reversal of price direction after over-ambitious market moves) can be most easily recognized in a basic pattern that accounts for five distinct “waves.” Of course the complete Elliott Wave Cycle extends far beyond just five basic pattern movements, but essentially even the more complex pattern cycles can be accounted for as simple extensions of the five basic waves.