Forex Elliott Wave

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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.

NZDUSD Long Term 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.

Forecasting with the Elliott Wave Principle

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.

Analysis and Trading with Triangles

In our previous article, we discussed how we could simplify the zigzag and flat pattern by the chartist figure known as a flag. In this educational article, we will see how triangles can be used in wave analysis.

Corrective Waves and the Flag Pattern

Is it possible to simplify the wave analysis and compare it with classic chartist patterns? Identifying Elliott Wave patterns can seem confusing, especially if you are looking to differentiate between a flat or a zigzag pattern. In this educational article, we will look at some of Elliott’s patterns and compare them to traditional chartist figures.

How to Use ETFs to Create Spreads

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 USDJPY and its 3-Year Triangle

The triangle is one of the three basic corrective patterns along with the Flat structure, with more variations within Elliott’s Wave Theory. In this educational article, we will review the

Dollar Index and the Alternation Principle

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

How to Analyze a Fast Market Using the Elliott Wave Principle...

In our previous article, we introduced the concept of "fast market." Also, we commented about the importance of watching the big-picture to support the market's general overview. In this educational

How to Analyze a Fast Market Using the Elliott Wave Principle...

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

Understanding the Flat Pattern

The flat pattern is a corrective formation that runs in a 3-3-5 sequence. Also, compared with other Elliott wave patterns, it has the most extensive variations. In this educational article

Elliott Wave Principle – Advanced Concepts – Part 3

The Relative Strength Index (RSI) indicator was developed in 1978 by J. Welles Wilder. the RSI is a Momentum indicator that measures the change of the price movement. In this

Elliott Wave Principle – Advanced Concepts – Part 2

Indicators are a useful tool that can aid in supporting the analysis process. In this educational article, we will review the Awesome Oscillator and how it can help us in

Elliott Wave Principle – Advanced Concepts – Part 1

Intermarket Analysis studies the correlation or relationship between different markets or assets. In this educational article, we will review how to apply the correlation analysis within the Elliott Wave Principle.

Essential Elliott Wave Theory Guideline

Recently, we ended the series that presents the basic concepts of the Elliott Wave Theory. In this guideline, we disclose the contents developed. Fundamentals of Elliott Wave Theory. Divided into

Traders’ Guide to the Elliott Wave Theory

The Elliott wave principle has its origin in the early 1930's decade. The introduction of the wave concept was published in 1934 by R.N. Elliott in his work "The Wave

Trading the Elliott Wave Principle – Part 5

Triangles are the third fundamental Elliott wave corrective structure. In this educational article, we will review the guidelines to trade this pattern. The basics The triangle structure is a corrective

Trading the Elliott Wave Principle – Part 4

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

Trading the Elliott Wave Principle – Part 3

The zig-zag pattern is a corrective Elliott Wave structure developed by a 5-3-5 internal sequence. In this educational article, we will unfold two guidelines to trade this pattern. Looking at

Corrective Waves Construction – Part 5

Elliott defined a complex corrective wave as the combination of two or three simple corrective structures. In this educational article, we will review the main characteristics of this group of

Corrective Waves Construction – Part 4

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

Corrective Waves Construction – Part 3

The second basic corrective formation is the Flat Pattern. Although this structure has three waves, it is different from the zig-zag. In this article, we will describe the structure of

Corrective Waves Construction – Part 2

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

Corrective Waves Construction – Part 1

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

Trading the Elliott Wave Principle – Part 2

Wave five is the last movement in the direction of the trend. In this educational article, we will review two ways to trade the fifth wave. Trend following The first

Impulsive Waves Construction – Part 4

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

Elliott Wave Theory and Fibonacci

Leonardo da Pisa developed the Fibonacci sequence in the thirteen century. The series starts like this: 1-1-2-3-5-8, and so on. Elliott, in his work "Nature's Law," said Fibonacci provides

Trading the Elliott Wave Principle – Part 1

The Elliott Wave Principle allows us to identify the primary trend and its correction. Also, it permits to recognize the maturity of the market, to determine price targets, and to

Impulsive Waves Construction – Part 3

An extension is an essential feature of an impulsive movement. In this article, we will see what the characteristic of this type of movement is. Extensions An extension is a

Impulsive Waves Construction – Part 2

A useful tool for motive wave analysis is the use of channels. In this article, we will review how to use channels to identify motive waves. Channeling process A channel

Impulsive Waves Construction – Part 1

Previously we presented an ideal model of motive waves; however, the real market is not exactly perfect. In this educational article, we will develop the principles of impulsive waves. The

Planning your First Wave Analysis – Part 2

In a previous post, we talked about the ideal structure of an impulsive and corrective wave. Also, we discuss the starting point of the study of a market. In this

Planning the First Wave Analysis – Part 1

Before to start to analyze any market, it's necessary to set-up the chart earlier to begin to identify motive and corrective waves. In this article, we will learn how to

Fundamentals of Elliott Wave Theory – Part 3

Until now, we have defined two kinds of waves, motive and corrective. In this article, we will introduce the concept of "degree," which will help us in the process

Fundamentals of Elliott Wave Theory – Part 2

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

Fundamentals of Elliott Wave Theory – Part 1

Ralph Nelson Elliott developed the Wave Theory in the 1930s. Elliott discovered that prices followed a sequence of repetitive patterns in form, but not in time and amplitude. He called

Divergence between Gasoline and Crude Oil

A divergence between Gasoline and Crude Oil Gasoline and Crude Oil are two energy commodities highly correlated. In the current session, Gasoline is moving