Elliott Wave Theory is a forecasting methodology that allows traders to map the price action so they can assess the likelihood and potential extension of the future price, and trend turns. This section is home for tutorials to help traders master it.: Basic Elliott waves, wave count, Impulsive waves, corrective waves, trade setups, Fibonacci retracements, and extensions. Practical examples are also analyzed.
Corrections are formations that occur after each impulse. As we have seen before, corrective waves have three segments. In this article, we will see the main characteristics of the corrective
A divergence between Gasoline and Crude Oil Gasoline and Crude Oil are two energy commodities highly correlated. In the current session, Gasoline is moving
In our previous educational post, we learned to identify the end of a movement. In this article, we will discuss how to use and evaluate retracements in the wave analysis.
The NZDUSD pair has shown signs of recovery in recent weeks. Have we to think in the buy-side for the coming weeks? In this article, we will review the probable next movement from the oceanic pair.
We have ended the section that covers the Advanced Level of the Elliott Wave Analysis based on the work developed by Glenn Neely, "Mastering Elliott Wave." These concepts are described and includes the following aspects:
The speed is a characteristic of nature; in the same way, some markets tend to be faster than others. The problem arises when a market moves sharply. In this educational
Impulsive waves are characterized by their directionality; thus creating trends; however, how the wave analyst can recognize the stage of the trend? To answer this question, we will present the canalization process.
The GBPCAD cross shows the completion of an Elliott wave triangle developed in its wave ((b)) of Minute degree, which moves inside the incomplete wave 2 of Minor degree.
Is GBPJPY Brewing a New Decline?
Waves develop in two classes, impulses and corrections. Impulsive movements are characterized by having a five-wave structure. Corrective waves, on the other hand, growth creating a three-wave structure. In this
The analysis and forecast process of any financial asset can support the decision process to take any positioning on the market. However, the time dedicated to developing it could increase the cost of the trade as this grows on time. In this educational article, we will review how to analyze and make a forecast by applying the main concepts of the Elliott Wave Principle.
The third basic corrective formation is the triangle. This pattern follows a 3-3-3-3-3 sequence. In this educational article, we will unfold the main characteristics of this Elliott Wave pattern. The
The EURUSD pair advances in an unfinished impulsive formation that raised the common currency from 1.06359 till 1.20114. The price action started to develop a corrective sequence, still progressing, corresponding to its fourth wave of Minor degree. Explore with us what should be the target of the fifth impulsive wave.
The GBPJPY cross continues moving by its seventh session in a row in a sideways channel turning in the neutral zone. However, since the last Thursday trading session, the price is consolidating in the bearish sentiment zone.
The flat pattern is the second fundamental Elliott Wave corrective structure. In this educational article, we will review the guideline to trade the flat structure. The basics Flat pattern is
We have finished the section that covers the Intermediate Level of the Elliott Wave Analysis based on the work of Glenn Neely. These concepts are described and include the following aspects.
A diagonal is an impulsive pattern, but it is not an impulse. That is because Diagonals have the characteristics of corrective waves. In this article, we will explain the aspects
The wave analysis begins with a preliminary study of the basic patterns defined by the Elliott Wave Theory. In this educational article, we will view how to start to develop a wave analysis.
R.N. Elliott, in his work "The Wave Principle" described the zig-zag structure as a corrective pattern. In this educational article, we will unfold the zig-zag formation. The basics The zig-zag
In our latest EURGBP technical analysis, we commented on the cross moving in an incomplete sideways corrective formation of Minor degree, identified in green. Its internal structure suggested the completion of a double-three pattern of Minute degree.
The NZDUSD pair continues consolidating in the extreme bullish sentiment zone, as is revealed on its 8-hour chart. The chart comprises its 90-day high and low range. Currently, the cross remains testing the psychological barrier at 0.6900.
The US Dollar Index reveals exhaustion signals of its bearish trend. A trend that remains in progress since the currency basket topped at 102.992 pm mid-March 2020. Follow with us what signs show the Greenback to expect a rally during the first quarter of the year.
The German index DAX 30 contains the 30 biggest German public companies traded in the Deutsche Böerse. In this article, we will review what to expect from the German index for the coming weeks.
The price of Bitcoin Cash (BCH/USD) is preparing to develop a new rally that could take it to beat the previous highs of March, located in the area of 352.96.
The German index DAX 30 advances in an upward Elliott wave sequence that suggests more upsides in the following trading sessions.
The NZDUSD pair ends the last trading week reaching its seventh fresh 90-day range high soaring to 0.69507. This advance brought the Oceanic currency to a close in the extreme bullish sentiment zone.
The USDJPY pair presents the breakout of a flag pattern corresponding to the third wave of Subminuette degree identified in green, triggered after the flag pattern breakout observed in Wednesday 26th session. Examine with us what's next for the coming trading sessions.
The wave analysis consists of the market study following the principles described by R.N. Elliott in its Treatise "The Wave Principle." In this educational article, we'll introduce the concept of wave patterns.
In our article "Impulsive Waves Construction - Part 1," we introduced the concept of "alternation." In this educational article, we'll apply this concept to the Dollar Index Analysis. The
Exchange-Traded Funds, or better known as ETFs, are investment instruments that are traded in a centralized market. In this educational article, we will see how we can use them to
The EURJPY cross advances in a long-term consolidation structure, which began in early December 2016. The short-term Elliott wave view predicts a limited decline in the following trading sessions.
The EURJPY cross consolidates in the overnight trading session expecting the ECB interest rate decision statement that will take place before the U.S. opening bell. The analysts' consensus doesn't expect changes both in the interest rate that remains at 0.0% and in the deposit facility rate that keeps at -0.50%.
The EURCAD cross reveals a mid-term consolidation formation that looks like an incomplete triangle pattern. This pattern continues in development since March 18th, when the price topped at 1.59914. In this context, this chartist pattern suggests the continuation of the previous movement, in the