Forex strategy using Elliot Wave Indicators
Learn Fibonacci retracement this powerful free method that pulls 500 + pips a trade. Download this 1 minute forex trading system free. Get one week FREE Forex training by Bob Iaccino who was a truck driver Chicago and now he is one of the famous forex traders in the world, who regularly appears on CNBC, Fox Business, Bloomberg, CNN Money, etc. He is the master of manual trading . Elliott waves were discovered by RN Elliott in the 1930s. What he found was the markets follow a wave pattern over the long term, and the short term it is repeated over and over again. This wave pattern is now considered a universal law of markets and is named as Elliott waves.
Price action may tend to split and corrections or sideways movements. Elliot Waves theory predicts that markets move in repetitive patterns. There is always a five-wave advance (impulse waves) and three wave decline (corrective waves). Waves 1, 3 and 5 are impulse waves, wave 3 is the longest. Waves 2 and 4 are corrective waves. These impulse waves are the market trends and corrective waves are lateral movements of the market.
The Elliott wave model can be seen on all intraday periods of the long term, such as monthly RN Elliott called the Grand Supercycle 200 years. Each wave in one cycle can be divided into smaller cycles.
Now in this simple forex trading strategy will combine the above basic knowledge of Elliott wave Elliott Wave with three indicators. Combining these principles with the Elliot Wave Indicators provides a powerful and unique trading method that can be highly profitable yet easy to master.
On most of the charting software, you will find these three Elliott Wave indicators as part of the advanced package. These three indicators are Elliott wave:
First Elliott Wave trend (ET)
Second Elliott wave number (EN)
Third Elliott Wave oscillator (EWO)
These are the rules for going long with these three indicators: EN should be 3 or 5. ET must be 0 or 1 and EWO should be a positive number. These three things must happen simultaneously. When you find the three indicators lined up together, you should look for an opportunity to go long immediately. When the EWO becomes negative immediately close your position. EWO below zero means the price action is to route.
And these are the rules for going short: EN should be the fourth ET must be 0 or -1 and EWO should be a negative number. These three things must happen at the same time. Exit your position when the EWO becomes positive.
You can practice this Elliot Wave Indicator strategy for any period of 5 minutes and higher. Always have the ultimate loss in place and to confirm the trend by making at least three consecutive candlesticks higher lows. Once your position to become profitable, you can use a trailing stop or stop continuous movement higher what suits you. You can use this strategy in action.
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