I have already written a basic post on elliott waves at my other post: Introduction To Elliott Wave Theory For Beginners. 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. Let us go forward a step in mastering elliott wave.
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. In his journey of mastering elliott wave, 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. Mastering elliott wave can make a trader conversant in identifying potential tops and bottoms of the markets. in fact EW along with fibonacci analysis can make these predictions even more accurate.
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. WE WILL TRY TO ADD ANOTHER VIDEO OR ANOTHER SOURCE OF INFORMATION ON THIS SUBJECT SOON.