The forex market moves in phases. It trends, then it consolidates and after some time of consolidating it starts trending again. With the knowledge of the Elliott Wave Principles, you can develop the skill to be on the right side of the market most of the time and capture big moves in the market with surgical precision. Using the Elliott Wave Principle can help you make winning trades more times than not!Elliott Waves were discovered by Mr. Elliott. He found a certain price pattern repeating over and over again in the stock market on the longer term. This gave birth to the idea that markets move in cycles or waves. This cyclical movement of the market is called Elliott Waves. Elliott waves are a fractal concept that works on all time frames from day trading to swing trading and position trading.An Elliott Wave Cycle from a bullish to a bearish market or from a bearish to a bullish market is always comprised of eight waves. In this cycle there are impulse waves and corrective waves. Impulse waves are the ones that move with the main trend. They are five in numbers. Corrective waves move counter to the main trend and are three in numbers. This pattern has been found to be repeated in the stock market as well as all the other markets repeatedly over and over again making the Wave Principle a Universal Law of the Nature.It is important for you to understand that there can be patterns within patterns. A wave pattern might be sub patterns of a larger wave pattern while at the same time contain its own sub wave patterns. But the most important thing to understand is that all these patterns follow the 5/3 rule meaning each pattern comprises five impulse waves and three corrective waves.Wave One is the shortest in the three impulse waves and looks like a corrective bounce from the previous trend. This is a short wave in the new direction while most traders are still entrenched in the previous trend. Wave Two is a corrective wave that should not reach past the beginning of the first wave. Wave Two represent profit taking by the trader while still entrenched in the previous trend.Wave Three is the strongest and the longest of the five impulse waves. Wave four is a corrective wave while wave five is again a impulse wave in the direction of the main trend and represents the peak of the bullish or bearish sentiment in the market.This is very important for you to understand. Elliott Wave Theory works on longer term charts as well as on the intraday charts. It doesn't matter what time frame you trade, a wave is a wave. You can use the wave principle in your trading. So a five wave count on the hourly chart when converted to a weekly chart may only be a one wave count. In the same way, a five wave count on a 5 minutes chart when converted on a daily chart might just compose only one wave.