As you enter the world of Forex you will immediately feel the
basic need all Forex traders have: A method or technique to
forecast the market behavior with the highest possible accuracy.
There are a number of methods and techniques that traders have
researched through the years with this goal in mind. These
techniques are based on different indicators and approaches to
trading, and each one has had its own successes and positive
outcomes when applied to specific market conditions, but there
is no doubt that among the most successful of these techniques
you will find Elliot Waves as one of the best concepts and
methods you can learn.
Ralph Nelson Elliot observed that the markets have strong trends
that seem to follow a repetitive pattern in all the different
time frames you can trade and after analyzing a great number of
charts he discovered in the late 1920's that the markets move in
a repetitive manner far away from a totally chaotic behavior.
He divided market movements into trends, corrections and
sideways movements. With these distinctions being made he then
assigned a wave terminology to these
periodic movements; he
called the trend movement an Impulsive Wave and a correction a
In order to have the formation of an impulsive wave we need five
constituent waves "inside" this wave. This will be three waves
in the direction of the trend and two corrections against the
But considering the fractal nature of the waves found by Elliot,
then each of the smaller impulsive waves will have itself other
five waves "inside".
In the case of the corrective waves they will be formed by other
three smaller waves. Two in the direction of the correction and
one in the direction of the trend.
Considering the repetitive nature of Elliot Waves you can make a
pretty accurate forecast of what the markets will do next, with
the huge advantage this represents in your daily encounters with
the currency markets.
About the author:
Adrian Pablo is a freelance writer with articles published in a
number of places. Get a free report on Fibonacci Trading and
learn more about the world of trading , visit:
E-gold Investing: Make Money With Currency Trading
Many people are already starting to pay attention to the newest
online trend: E-gold investing.
E-gold investing is a all about a system that allows you to
profit from the money that is being traded everyday on the
internet. What you're...
Energy Prices, Inflation and Forex
Oil futures surged to a record intraday high of $70.85 on August
30th, the day after Hurricane Katrina made landfall on the Gulf
Coast. While prices have moderated in subsequent weeks, it's
worth examining how higher commodity prices and the...
Forex Made Easy for Everyone
Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. That is some figure to chew on. Forex...
ForexInterBank Forex Trading Course for Day Traders and Small Investors Focusing on Forex Pivot Point Trading
More and more day traders and small investors are turning to the foreign currency exchange market and for a number of good reasons. "The spot forex market provides them the means to invest without concern for liquidity or market manipulation," says...
The Benefits Of Trading The Forex Market
Historically, the FX market was available most to major banks,
multinational corporations and other participants who traded in
large transaction sizes and volumes. Small-scale traders
including individuals like you and I, had little access to...
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest / trade in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading.
** The Views and opinions represented in the provided website links and resources are not controlled by the Referring Broker or the FCM. Further, the Referring Broker and the FCM are not responsible for their availability, content, or delivery of services.