What Is Elliott Wave?
I have already written a basic post on elliott waves at my earlier post: What Everybody Ought to Know About Elliott Waves? So you already know that elliott wave theory are a five wave pattern that happens in the financial markets. The five wave pattern in any move is called the impulsive wave and that is followed by a 3 wave corrective move, also called as the corrective waves.
The Elliott wave was discovered on the decade of Nineteen Thirties by R. N. Elliott, from his research basically on the Dow Jones Industrials file -the U.s. Securities exchange. He identified that the market has a tendency to move in sure patterns. He then also identified that these patterns can be gathered to forecast the movements beforehand.
Fundamentally, he identified that trends generally unfold in 5 waves toward the primary pattern, and which were associated by certain corrective actions. He likewise perceived that every wave is a part of a wave of bigger degree.
He then derived that if a business expert pinpointed where in this example the business sector as of now was, then he (or she) ought to have the ability to foresee where the business sector might go from here. Basically, the Elliott wave hypothesis permitted you to anticipate future market developments.
We are sharing here an wonderful video on elliott wave trading techniques. Watch the video below.
2017 addition: DUE TO TECHNICAL PROBLEM THE VIDEO IS UNAVAILABLE NOW.
Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.