Short Introduction to Elliot Waves as a Resource in Forex Trading.

[adpablo]

The Forex market has the largest volume of trades per day among all the capital markets you can trade. This characteristic together with it’s high leverage and around the clock trading schedule makes Forex very attractive for traders around the world.

Once you enter the world of forex trading you will realize that this market has strong trends that seem to follow a repetitive pattern in all the different time frames you can use to analyze the market conditions.

Ralph Nelson Elliot also observed this and after analyzing a great number of charts he discovered in the late 1920’s that the markets move in a repetitive manner that is far away from being a totally chaotic behavior. The markets move in cycles and they reflect the mass psychology of the active elements participating in them, with a characteristic ebb and flow that can be divided and analyzed as “waves” of this active elements psychology in their daily dealing with the markets.

But Elliot not only discovered the repetitive nature of the markets cycles but he also realized that this patterns had a fractal nature. This means that the patterns not only repeated with time but that in a given period of time the characteristic wave pattern would repeat at different scales (days, hours, minutes).

The Elliot wave pattern can be divided in five constitutive waves with the first of the waves called the impulsive wave. The fractal nature if this waves was evident to Elliot when he observed that in every impulsive wave, when observed at a smaller time scale he would find the characteristic five waves of the pattern he had found and if he now looked at the impulsive wave of the smaller impulsive waves in an even smaller scale he would find again five ways, etc.

Elliot waves are very important in Forex because he identified the specific patterns that you can observe when trading this market and considering the repetitive nature of this patterns you can make a pretty accurate forecast of what the markets will do next. Giving you a huge advantage in your daily encounters with the currency markets

[fpfx]

Interested in elliott wave trading but it's hard to learn....

[Antne22]

Has anyone ever heard of Scott Schubert? I've been watching some of his stuff on youtube and he seems to be a pretty good teacher but sometimes he advertises things like making 300-400 pips per day if you take his course. It seems a bit dodgy to me. Anyway, I hear his methods are based on Elliot Wave Principles. I did some reading on the waves and investopedia but the idea didn't seem too enticing. I am new to forex so I will certainly do more reading into the method.

[adpablo]

mmm...I will search about this Scott Schubert in youtube..the first time I hear about him...

[forexboy]

I want to learn Elliot Wave analysis, where can I get some basic information about it?

[forexguide]

YOu are right there.. You've said it just like what i am thinking so far..