Description Impulses are always composed of five waves, labeled 1,2,3,4,5. Waves 1, 3, and 5 are themselves each impulsive pattern and are approximately equal in length. Waves 2 and 4 on the contrary are always corrective patterns. Rules and guidelines The most important rules and guidelines are: • Wave 2 cannot be longer in price…
Studying the patterns is very important in order to apply the Elliott Wave Principle correctly. The pattern of the market action, if correctly determined, not only tells you to what price levels the market will rise or decline but also in which way (or pattern) this will happen. When you are able to recognize the…
According to physical law: “Every action creates an equal and opposite reaction”. The same goes for the financial markets. A price movement up or down must be followed by a contrary movement, as the saying goes: “What goes up must come down”( and vice versa).Price movements can be divided into trends on the one hand…
How to Trade with Force Index indicator Force Index (FI) measures the force of bears and bulls in a trending market. This indicator is based on price, direction and trade volumes, which are the three essential elements of the price’s movement. The FI can confirm a trend, identify corrections that are worth trading and even…
Do you trade trends ? We’re sure most of you do! How can you identify a trend correctly, and how can a newbie figure it out? Let’s discuss. ✔️The main advantage of drawing trendlines is that they make the chart look clearer. To succeed in trading, you must be able to find useful information on…