From an Elliott wave perspective, the plotted price activity of a market is the graphical representation of crowd psychology.the wave theory describes how local plotted data relates to surrounding data, how data should behave under multitude of circumstance ,when and how psychological trends begin and ,how one psychological environment mandates the unfolding of another and what general shape the price action should exhibit upon completion. In other words , the Elliott wave theory organizes the seemingly random flow of market price action into identifiable , predictable patterns based on the natural progression of crowd of crowd psychology.