Have you ever heard of a charting technique that actually takes into account market psychology? If you haven't, it's time for you to get to know Mr. Ralph Neison Elliott.
Elliott Wave Theory
Amidst all the chaos in the market, Mr. Elliott found order. The Elliot Wave Theory gives us a way to identify highly probable points where price is most likely to reverse.
Impulse Waves
According to Elliot, a trending market moves in a 5-3 pattern. Find out what that means here.
Corrective Waves
The Zig-Zag, the Flat, and the Triangle are all types of ABC correction wave formations.
Fractals: Elliott Waves Within an Elliott Wave
Always remember that each wave is comprised of smaller wave patterns and that this pattern tends to repeat itself FOREVER.
3 Cardinal Rules of the Elliott Wave Theory
Before you jump right into applying the Elliott Wave Theory to your trading, you must take note of the following three cardinal rules.
How to Trade Forex Using Elliott Waves
Enough jibberjabber – it’s time to see the real thing! Here’s how you can apply Elliott Waves in trading.
Summary: Elliott Wave Theory
Before you test your Elliott Wave skills in trading, make sure you’ve got its basics down to a tee.
