The simplicity of the markets is perhaps their greatest disguise and yet we find that most traders make the mistake of overcomplicating the trading process. You don’t need to have a high IQ or especially fast computers to...
Latest Posts
How to Find and Use Cycles
How to Find Cycles You will not be surprised to learn that computers have been applied to finding cycles in trading markets. As the human eye is still pretty good at discerning patterns, you can apply manually apply cycle lines...
Cycles to Watch For
Kondratieff Wave Nikolai Kondratieff is alleged to have discovered a 54 year cycle which affects much of economic activity. Working in the 1920s, he examined records of prices back to 1789. The cycle is supposed to influence...
Cycles Basics and Principles
The Basics of Cycles Cycles have three characteristics, amplitude, time, and phase. They are often represented by a sine wave on a graph. Amplitude is the height of the wave, time is the cycle length which is usually measured...
Cycles of Time and Summary of Elliott Wave Theory
Cycles of Time Up to now, time has been an intrinsic and accepted part of our discussion, but we haven’t focused on it. Most of the information has been about price movement, and time has been included by default. But some...
Fibonacci Time Targets
Perhaps the least important part of the wave theory, nonetheless Elliott considered pattern, ratio, and time in his work. He used the Fibonacci series and counted forward from significant peaks and troughs, so that the 8th day...
Fibonacci Retracements
Aside from the direct application of Fibonacci ratios to the wave lengths, you can also determine price goals by using the numbers as percentage retracements. You may remember in module three that I spoke about retracements, and...
Fibonacci Numbers
Up to now, our review of Elliott Waves has only covered the wave form in itself. But there is more to the Elliott Wave Theory than simply describing the shapes and repetitions of the waves observed in the price. The theory also...
Channels and the Rule of Alternation
The Rule of Alternation Elliott’s Rule of Alternation has an important message for the chart watcher. He noted that the corrections between rally thrusts tend to alternate between complex shapes and simple shapes...
Triangles
Corrections: Triangles Triangles are the final type of corrective pattern you’ll see. They signify a relative balance between buyers and sellers. You’ll usually find that the triangle forms with lessening volume. They...
