Contracting triangles appear quite often in the forex market. When the market consolidates, the pattern that is most often thought to be forming is a contracting triangle. Elliott discovered various…
If there is something that ties all of Elliott Wave theory together, it is the Fibonacci ratios or levels. Every single pattern or concept within the theory depends on a…
A complex correction in Elliott Waves Theory consists of two or three simple corrective waves connected by one or two intermediary waves. Double or triple combinations are various combinations of…
As a simple correction, a flat pattern has two corrective waves (a-wave and b-wave) and an impulsive wave (c-wave). Moreover, the b-wave must retrace more than 61.8% of the a-wave.…
A zigzag is the most deceivingly simple corrective pattern within the Elliott Waves Theory. And, for good reason. When we discussed corrective waves within Elliott Theory, we introduced the notion…
The concept of the x-wave is often misunderstood in Elliott Waves Theory. Elliott’s intention was to create a logical process to explain market moves; all of them! He started by…
Every central bank has a mandate that revolves around price stability. In economic terms, price stability means inflation is being kept at bay. Studies show that for healthy and constant…
Volume has always been an essential indicator due to what it illustrates: the actual buying and selling that takes place. In trading financial markets, it always makes sense to interpret…
Most oscillators have two areas of extremity that show overbought and oversold levels. Conventional wisdom dictates that investors buy when the price reaches the oversold area and sell when the…
Triangles are one of the first patterns documented by technical investors. When trading the stock market in the United States, investors noted that specific patterns tend to form before the…