Question for people using Elliot Wave
Recently I met a trader who is trying to train me to help manage his portfolio, but he wants me to learn elliot wave.
I have made a blog like this before, and I have asked many people before, and I never seem to understand the answer.
I just read this line in the book, and it confuses me to no end, and has forever.
"The market decline in the middle box shows everyone is on the same side of the market".
How is that possible? If everybody was on the sme side the market, no trades would take place. Every sell needs a buy to match it, otherwise the price would not appear on the tape. My trader friend said "price does not represent buyers and sellers, it represents the progression of the price towards supply equaling demand".
This also makes no sense. If at $55, there was 1 million sell orders, and no buy orders, then the price would keep going down until there was 1 million buyers at a certain price level, where the trade would take place.
So how could everybody be on the same side of the market? It is hurting my brain