Forex Trading Course (Part 4)

waves which is made up of Sub-Minuette waves. Did you get all that?Okay, to make things much clearer, let’s see how an Elliott Wave looks in real life.

As you can see, waves aren’t shaped perfectly in real life. You’ll also learn it’s sometimes difficult to label waves.

But the more you stare at charts the better you’ll get.Besides, we’re not going to let you go at it alone! In the following sections,

we’ll give you some tips on how to correctly and easily identify waves as well as teach you how to trade using Elliott Waves. Surf’s up!

foerx trading As you may have guessed, the key in using the Elliott Wave Theory in trading is all about being able to correctly identify waves.

best trading By developing the right eye in recognizing what wave the market is in, you will be able to find out which side of the market to trade on, long or short. below.

in the forex market There are thr “cannot-be-broken” rules in labeling w before you jump right in to applying the Elliott Wave Theory to your trading, you must take note of the rules

Cardinal Rules of the Elliott Wave Theory Rule Number 1: Wave 3 can NEVER be the shortest impulse wave

in forex Rule Number 2: Wave 2 can NEVER go beyond the start of Wave Rule Number 3: Wave 4 can NEVER cross in the same price area as Wave 1

Then, there are the guidelines that help you in correctly labeling waves. Unlike the three cardinal rules, these guidelines can be broken. Here they are:Wave 3 tends to be very long, sharp, and extended.

nversely, sometimes, Wave his is called trave 5, more often than not, goes beyond or “breaks through” the trend line drawn off Wave 3 parallel to a trend line connecting the start of Waves 3 and 5.

This is probably what you all have been waiting for – drumroll please – using the Elliott Wave Theory in forex trading! In this section,

we will look at some setups and apply our knowledge of Elliott Wave to determine entry, stop loss, and exit points. Let’s get it on!

Hypothetical, will-most-probably-be-right scet’s say you wanted to begin your wave count. You see that price seems to have bottomed out and has began a new move upwards.

Using your knowledge of Elliott Wave, you label this move up as Wave 1 and the retracement as Wave 2. in the forex market.