Elliott Wave Theory

[lvmxk]

Hello,
I'm new to the forex market and I had a question about Elliot Wave Theory. Is it god enought for FX market. Is it worth learning it?

Thanks

__________
Marcis Kaksis
Valmiera, LATVIA

[Iris]

Ralph Nelson Elliot ....1871-1948.....was truly ahead of his time in the developement of his principle for directional wave movment of Price. Elliot discovered the principle in his later years while confined from a serious illness to his home....he expounded upon Charles Dows Theory of Bull/Bear Markets move in 3 distinct phases.Elliots Theory was that Price moved in a 8 Wave pattern...Impulse Wave 1...Corrective Wave 2.....Impulse Wave 3....Corrective Wave 4.....Impulse Wave 5....Waves A-B-C.

Wave Theory is an underpinning of ALL Capital Markets worldwide. Any Capital Market moves in a distinct pattern.....and Elliot Wave Theory has yet to be a stepping stone to a broader Theory ...as he did with Charles Dows Theory.

Also if you are going to delve into this Principle.......You should also incorporate Fibonacci and Ganns principles...for a total framework of study.


Time the Trend.

Iris

[mig928]

Wave Theory is an underpinning of ALL Capital Markets worldwide.

Aren't you laying it on a little too thick?

I'm not a follower btw. To me it's just a theory trying to explain the movements of prices.

[Iris]

Mig.....

Meant in the context that Wave Theory supercedes by design......in theory...Any Capital Market.......the initial question was whether it was applicable to Forex. Another piece of the broader Theory of Directional Price Movement.

The Holy Grail of Trading is Time.

Time the trend.

Iris

[mig928]

Fair enough.

I'm glad you've found your Holy Grail. The closest thing I can do in timing trends is looking at simple cycles. I merely look at the frequency of the peaks and valleys of the chart I'm trading, then buy the valley and sell the peak. Sometimes I get lucky that the cycle repeats. Most times the cycle changes.

I tried seasonals but it works better for crops.

I sure would like to hear your opinion on trend timing and how you go about doing it. Mine is laid out above.

[mig928]

To answer your question. Yes but not too detail. Just learn the basic 12345abc. That's enough for me. I don't even know what's a valid 1,2,3,4,5,a,b,c. I simple look at the overall picture on the charts.

Elliot Wave is really becoming ridiculous with all the added rules since Bob Prechter. You can even get certified on it. A company will grant you an expert certification on the use of elliot wave theory.

[Iris]

Mig.........

I follow the Accumulation/Distribution cycle. The Timing is in the magnitude and velocity of the move that translates into an early Signal and entry...sometimes you catch the initial phase of the move...other times the retrace....with stopouts along the way.

For Timing i like to use Divergence/Retracement entries in Overbought/Oversold crossovers and Fib prior High/Low retrace ranges ....at or near peak... to catch the intial phases of the Trend.

RSI divergences, Stochastic crossovers, ADX, Bollinger Bands, MA
S/R Candlesticks, MACD, Fibonacci ratios from prior high/low turning point. Taken from the Weekly through minute Time frames The best Signals are a confluence of Analysis.



Time the Trend.

Iris

[currencia]

Yes, I tried to calculate a three legged journey to Mars using Elliott Wave and Leonardo de Pisa, since Mars is the closest it is going to get to Earth for the next 26,000 years. I got lost and Ralph was no place to be found to help me. Lucky for me, I had a fifth wave failure and the repelling force got me a ride over to the moon. Now, I have to figure out a way for the rest of the journey. Lucky I brought my Gann book along, cause I think I'll give him a try. At least now, I have a shot at it every 28 days, rather than waiting another 26,000 years! I guess I should have used sacred geometry rather than just plain ole solid geometry to help with the calculations. 26,000, in hindsight, doesnt appear to be a fib number and my Phi and Pythagoream got all mixed up.

I guess I better stick to a trendline and a slow stoichastic.