Trading with The Elliott Wave – The Basics II
On Trading with The Elliott Wave – The Basics II we continue analysing important aspects related to trading using the Elliott Wave. Definition of price targets Elliotticians assess Price targets using Fibonacci ratios and one to one projections in rising channels. We will discuss Fibonacci and projections later in more depth. In Fig. 6 we…
Trading with The Elliott Wave – The Basics
The basics of the Elliott Wave Principle The basis of the Elliot wave analysis is this. The market moves in a fractal pattern of waves. Its basic model is formed by a pair of waves: An impulsive wave and a corrective wave. Finally, the end of the correction marks the beginning of another impulsive…
Trading with The Elliott Wave – Introduction
We need a map An essential step for a trader aspiring to succeed is to understand how markets work. To know the criteria allowing him to decide whether to enter. And if so, at which price, as well as possible “escape” routes, or invalidation points. There is something which novice participants struggle with. And it…
Fibonacci Ratios and the Square Root of Two Part II
On Fibonacci Ratios and the Square Root of Two Part I, we talked about the history behind the Fibonacci sequence and how ratios were computed. On part two, we are going to describe how Fibonacci and sqrt-2 ratios show up in the Elliott Wave structure. Usual wave relationships Ian Copsey in his book The Case for Modification of…
Fibonacci Ratios and the Square Root of Two
Background Traders use the Elliott wave as a developing price map, on which they try to guess the most probable future path. Sometimes the trader waits for some unfinished wave to end, to pull the trigger or take profits. When this occurs, he or she uses Fibonacci ratios to forecast a price level for that…