The Elliott Wave strategy can be applied to all time frames and all markets. Considered as a trend-following strategy, it has been a universal trading strategy that requires looking for patterns of five consecutive waves before making a trading decision. A market prediction based on wave patterns, the Elliott Wave theory made detailed stock market predictions based on reliable characteristics he discovered in the wave patterns. Elliott discovered stock index price patterns were structured in the same way. He then began to look at how these repeating patterns could be used as predictive indicators of future market moves.