A Wealth of Knowledge
Waves are the general movement of the markets. Although it might be an uptrend or a downtrend, the market does not move in a straight line, it tends to move in a zigzag motion thus creating waves. Fibonacci uses wave analysis in predicting future price movements. this is called ABC wave analysis. Whereby wave "A" is a strong move and wave "B" is a corrective of that move and so forth.