Figure 1.1 has two extreme trends and one extreme trading range. This day began with a strong bear trend down to bar 1, then entered an unusually tight trading range until it broke out to the upside by one tick at bar 2, and then reversed to a downside breakout into an exceptionally strong trend down to bar 3. Two-legged moves are common, but unfortunately the...
Elliott Wave Principle , developed by Ralph Nelson Elliott, proposes that the seemingly chaotic behaviour of the different financial markets isn’t actually chaotic. In fact the markets moves in predictable, repetitive cycles or waves and can be measured and forecast using Fibonacci numbers. Elliott wave predicts that the prices of the traded financial instrument...
Here I'd like to share my favourite entry method. The chart is self explanatory. Let me know if you have any questions .... This will happen during Wave 3 and Wave 5 (for those who subscribe to the Elliott Wave theory) This pattern is sometimes called the Retrace, the Dip, the Pullback, the ABC correction, the ZigZag. The BOMB (by guerilla guys)
FX:EURGBP is currently completing the correction wave C as shown.
Note: this is not backtesting, just an observation of some pairs in the last week. All of these can be seen as ABC, but I like to chart it as ABCDE and see that E is not coming in the way. I spotted this behaviour on various pairs and time frames, but the last week provides nice summary to be put in one place. They provide nice RR, but require patience :) And of...
In this video I show you basics behind ABCD waves. And how, if you combine the daily waves. Combine with the 3 days trend on H1, you can build a logic and a system around it.
The ABC Pattern is derived from the ZigZag concept from Elliott Wave, and the 1-1 concept from Harmonic Patterns. Practical Exercise 1) Identify a corrective move that look like a ABC Pattern, it can be any currency pair, any timeframe. 2) Using Fib expansion, measure the ABC Pattern. 3) Record down where does this ABC Pattern completes. 4) Also, record...