Elliott Wave Theory is a popular technical analysis approach that aims to predict future market movements by analyzing the cyclical patterns of price movements. The theory posits that financial markets move in repetitive cycles driven by investor sentiment, which can be observed in wave patterns. 

The basic premise of Elliott Wave Theory is that markets move in five-wave patterns during bullish trends and three-wave patterns during bearish corrections. The five-wave structure consists of three upward waves (labeled 1, 3, and 5) and two downward waves (labeled 2 and 4), forming a complete cycle. After this five-wave sequence, the market typically experiences a three-wave correction (labeled A, B, and C). 

Traders can use Elliott Wave Theory to identify potential price targets and reversal points. For instance, after completing a five-wave upward movement, a trader might anticipate a corrective phase, providing an opportunity for short positions. Conversely, after a three-wave correction, traders may look for buying opportunities as the market is expected to resume its upward trajectory. 

One of the advantages of Elliott Wave Theory is its adaptability. Traders can apply it to any time frame, from minutes to months, making it a versatile tool for different trading styles. However, accurate wave counting can be subjective and requires practice and experience.