Article Library


The Elliot wave theory was developed by Ralph Nelson Elliot in the 1930s. The Elliot wave theory strives to prove that price movements are not random or chaotic, as many would think; but rather that price fluctuations occur in repetitive cycles and that price activity is essentially a representation of mass psychology. Simply put, price activity of the markets directly represents typical investor behavior.
Ralph Nelson believed that mass behavior is repetitive in nature, and that this behavior obeys natural laws of progression. He further postulated that this mass behavior is evident in price activity and can be used to forecast future price action. He identified certain patterns or "waves", which he proposed can be used to interpret price activity in the markets.
Price action in the markets is usually divided into two types: trends or corrections. A trend is the long term movement of price, while corrections are price movements in a counter-trend direction. Ralph Nelson represented trend movements as "impulsive" waves and corrections as "corrective" waves. An impulse wave is a sustained market price move in a particular direction, while a corrective wave is a smaller price moveme…
Read article
Translate to English Show original
sonjatrader avatar

very good

zarina avatar
zarina 19 Feb.

fellow read with interest !!

Alexander22 avatar

отличная работа!

tdbatinkov avatar
tdbatinkov 20 Feb.

great analysis

Olkiss70 avatar
Olkiss70 21 Feb.

great work!

orto leave comments
In their “Monetary policy assessment of 14 March 2013”, the Swiss National Bank (SNB) decided to leave the exchange rate of CHF 1.20 per euro unchanged. The SNB said that “the minimum exchange rate is an important instrument in avoiding an undesirable tightening of monetary conditions. The SNB will therefore enforce this minimum rate with the utmost determination and, if necessary, is prepared to buy foreign currency in unlimited quantities for this purpose.” Last summer the SNB was a key mover of the global forex market. It was known to be buying tens of billions of euros each month, hoping to keep the franc weak to protect its exporters in the face of inflows from spooked overseas investors at the height of the eurozone crisis in May. Rumors abounded among forex investors that the SNB was buying Swedish krona and the Australian dollar. Bankers said there had been days when the SNB was the biggest single buyer of Australian debt. Figures released by the SNB later in the year confirmed the rumors; the proportion of “other” currencies on its balance sheet – the Australian dollar, Swedish krona, Danish krone, Singapore dollar and Korean won – rose. The IMF is considering switching CA…
Read article
Translate to English Show original
Arenoosh avatar
Arenoosh 25 Mar.

thank you for your feedback

Efegen avatar
Efegen 28 Mar.

You were right and you are goin to be right.

Arenoosh avatar
Arenoosh 28 Mar.

@Efegen when I published this article the usd/chf rate was arround 0.9380. If someone went long on this pair after reading my article, now he would have +160 pips and I think by the end of the contest might be +200 pips.

Arenoosh avatar
Arenoosh 28 Mar.

Now I have one more reason to be long USA. Even if, this year, we didn't had a spectacular oil prices evolution we do have something: the gap betwen WTI and BRENT is reducing and that means investors are working with the assumption of a better performance in relative terms of US economy because we all know that WTI is a benchmark for the US while BRENT is a benchmark for Europe and Asia. For 2013 I would be long US stocks, and usd vs G7/G20 currencies.

SpecialFX avatar
SpecialFX 29 Mar.

Very detailed article mixing a lot of different types of analysis, I liked it a lot :)

orto leave comments

the previous article, I have briefly introduced the concept of momentum in
trading; I have demonstrated how to calibrate a momentum indicator and use the
dual time momentum strategy to set-up a trade. Please first read this previous
article before reading this.
The market displays different patterns, and the recognition of these patterns
allows us to predict likely direction of the market. These patterns fall into
two main groups: trend and correction. The subtypes of trend and correction patterns
are beyond the scope of this paper. In this article, the basic guidelines for
the recognition of trend and correction patterns without dwelling into all the
details, which are based on the Elliot wave theory, are discussed. Now let me
explain the practical pattern recognition and its applications in trading,
starting from the description of the trend and correction.
A market making corrections does not take out previous extreme price point, and
it makes a new low or high. An overlapping low or highs will form in the range
of the prior extreme points. On the other hand, if a market is making a trend,
it takes out the extreme and eventually makes a new low or high …
Read article
Translate to English Show original
doctortyby avatar

I use fibonacci, 123 formations and elliot waves in my analysis.Never forget that the trend is your friend...until it is broken.ABC formations are clearer on Constant range Bars charts. Check out my introduction to range bars. Good Luck and Play fair +1!

ritesh avatar
ritesh 19 Jan.

Fibonacci tells us target of price move ahead of time +1

orto leave comments