MoneyTec Traders Community Forum - View Single Post - Elliott Wave Theory shouldn't be used for Forex

wavetrader · 29-10-2003, 01:24

Market behaves very differently in corrective mode than in impulsive mode. For example, in the 'last' Super Cycle of US stocks from 1932, market behaviour in wave 4 (1966-1974) and in wave 5 (1974-1999) was very different.

And theoretically, in impulse, a 5 will be followed by a 3, then 5 then 3 then 5. While in corrective mode, a 5 can be followed by a 3 then 5 in a zig zag, then end.

Without knowing whether we're in impulse or correction, we can anticaple whether there will be a wave 5 or not.

So in case of forex, since IMHO, a certain currency won't be foreverly stronger than another, and so there shouldn't be any 'impulse' from a Cycle or SuperCycle perspective. Without impulse, then we'll only in correction all the time.

Another perspective is that, the currency pairs are relative. That means EUR/USD is EUR/USD because it's set to be EUR/USD. If EUR/USD is not EUR/USD but USD/EUR, will EWT be reversed to be 5 wave down, 3 wave up, 5 wave down, 3 wave up and ended with 5 wave down?

Finally, if stock market index is a way to track economy performance of a certain country, Forex can be viewed as the relative performance of 2 certain countries. With say, US economy follows EWT and say JP economy follows EWT, will the result of the comaprison of 2 economies, i.e. USD/YEN, follows EWT too? Why?

29-10-2003, 01:24	#9
wavetrader level 1 Join Date: Oct 2003 Posts: 6 Downloads: 0 Uploads: 0 Rep Power: 0	Market behaves very differently in corrective mode than in impulsive mode. For example, in the 'last' Super Cycle of US stocks from 1932, market behaviour in wave 4 (1966-1974) and in wave 5 (1974-1999) was very different. And theoretically, in impulse, a 5 will be followed by a 3, then 5 then 3 then 5. While in corrective mode, a 5 can be followed by a 3 then 5 in a zig zag, then end. Without knowing whether we're in impulse or correction, we can anticaple whether there will be a wave 5 or not. So in case of forex, since IMHO, a certain currency won't be foreverly stronger than another, and so there shouldn't be any 'impulse' from a Cycle or SuperCycle perspective. Without impulse, then we'll only in correction all the time. Another perspective is that, the currency pairs are relative. That means EUR/USD is EUR/USD because it's set to be EUR/USD. If EUR/USD is not EUR/USD but USD/EUR, will EWT be reversed to be 5 wave down, 3 wave up, 5 wave down, 3 wave up and ended with 5 wave down? Finally, if stock market index is a way to track economy performance of a certain country, Forex can be viewed as the relative performance of 2 certain countries. With say, US economy follows EWT and say JP economy follows EWT, will the result of the comaprison of 2 economies, i.e. USD/YEN, follows EWT too? Why?