Elliott Wave theory contains elements of a mathematical concept known as a fractal, which is an object or shape that has self-similarity on different scales.
Fractals are found in a variety of phenomena. For example, if you look at a mountain from a distance you see a peak with relatively smooth sides leading up to it. As you move closer, you begin to see how the sides of the mountain are actually made up of smaller sub-peaks and sides, which consist of even smaller peaks and sides, all sharing a similar basic structure or pattern.
Similarly, part of wave theory is the idea that any wave cycle is part of a larger wave cycle that adheres to the same rules, and is also composed of smaller wave cycles with the same structure.
Many devotees of Elliott Wave consider price action to be a natural phenomenon driven by human emotion, which makes the fractal aspect of wave patterns an effective way to understand and describe the price movement.
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