Elliott Wave reflect patterns of price movements in the currency market.They have seen many of the traders, however, to identify and clearly describe these patterns could named Ralph Elliott, in whose honor this theory is called the "Elliott Wave Theory."He believed that any of the trend movements can be broken down into components.Time has proven that with the right wave counting, you can accurately enter the market and take profits.
any trend can be decomposed into five waves, of which three - and two pulse - correction.Pulse Elliott wave moving in the direction of the main trend, and correction - in the opposite direction.Each of the impulsive waves, in turn, degrades further five similar structure, that is to say that one of the five waves larger timeframe five-wave structure is formed in a smaller timeframe.Tops similar pyativolnovki to denote numbers, respectively, from 1 to 5.
A corrective wave form three sub-wave, and the two of them are pulse and one - correction.They are usually denoted by Latin letters A, B, C
In fact, this theory is a mathematical justification for the behavior of both society and the financial markets in accordance with cyclically repeating recognizable patterns (patterns, samples).In each of the life cycles of the market or the society with the possible division into 8 waves in the form of a five-wave cycle in the direction of the main trend (marked figures) and three-wave correction cycle to it (mark out the letters).
Elliott Wave analysis is precisely aimed at the recognition of this kind of structure, which may allow to predict the subsequent direction of the trend.This release two models of the market - "bull" and "bear".Movement of each of the waves to some extent corrects the motion of another.
Elliott Wave based on the market price movement, and in their construction are the rules of proportionality.The ratio of price pattern waves satisfy the Golden Ratio and the Fibonacci ratio and others.The behavior of the market, of course, is not predetermined, and the possible error of about 10%.
Besides the classic five-and trehvolnovok feasibility and other elements: elongated or truncated wave of correction, have divergent views of the triangles, wedges, double zigzag and others.
These waves are observed on any chart and random intervals.It should be noted that on small time scales wavelengths are very short, perhaps in a few points.Therefore it is better to use a wave theory on higher timeframes.
To properly perform and interpret the wave counting her need considerable knowledge and experience.However, those who are able to correctly identify the first and third wave, get the best entries.Using Fibonacci levels measured at this depth correction and future goals.
happens that determine the third or fifth wave only at the price it is not possible, then made markings loses its objectivity.Schedule rates and may not reflect the difference in strength of the waves.
the aid in this case can come to the Elliott wave indicator capable of measuring the rate of change of prices in one of the waves in relation to the rate of price changes in the other.The standard is to compare the dynamics of the indicators of activity and costs are not capable.
Job Elliott Oscillator is based on the difference between a quick (5-period) and slow (35-period) moving average.For example, the third and most powerful wave in the histogram display, has the highest elevation.
Elliott Wave master immediately is impossible, however, to learn their language, you can get answers to any questions concerning the behavior of prices in the market.
