Brief Overview of Each of the Eleven Elliott Wave Patterns

Posted on July 16th, 2008 by admin, under FOREX strategy.

Brief Overview of Each of the Eleven Elliott Wave Patterns
Impulsive or Motive Waves - Moving with the Larger Trend

Impulsive or Motive waves are always moving with the larger trend,consist of five waves, and are labeled 1-2-3-4-5.

Impulse: (IM)

An Impulse is a five-wave pattern, labeled 1-2-3-4-5, moving in thedirection of the larger trend.

Diagonal – also known as a Diagonal Triangle: Leading (LD) and Ending (ED)

A Diagonal is a common 5-wave Motive pattern, labeled 1-2-3-4-5, that moves with the larger trend. Diagonals move within two contracting channel lines drawn from Waves 1 to 3, and from Waves 2 to 4.

There exist two types of Diagonals: Leading Diagonals (LD) and Ending Diagonals (ED). They have a different internal structure and are seen in different positions within the larger degree pattern.

Ending Diagonals are much more common than Leading Diagonals.

Ending Diagonal

Corrective Waves - Moving Against the Larger Trend

Corrective patterns are either 3 - or 5 - wave patterns, labeled with letters, and move against the larger trend.

Zigzag:

A Zigzag is a 3-wave structure labeled A-B-C, generally moving counter to the larger trend. It is one of the most common corrective Elliott patterns.

Zigzag

Double and Triple Zigzags (DZ and TZ):

Double and Triple Zigzags are similar to Zigzags and are typically two or three Zigzag patterns strung together with a joining wave called an “x” wave. They are corrective in nature.

Triple Zigzags are rare.

Zigzags, Double Zigzags and Triple Zigzags are also known as Zigzag family patterns, or “Sharp” patterns.

Double Zigzags are labeled w-x-y, while Triple Zigzags are labeled w-x-y-xx-z.

Only a Double Zigzag is illustrated below.

Double Zigzag

Flat (FL):

A Flat is a three-wave pattern, labeled A-B-C, that moves mostly sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Flat

Double and Triple Sideways:

Double and Triple Sideways patterns (also known as Double 3’s and Triple 3’s) are similar to Flats, and are typically two or three corrective patterns strung together with a joining wave, called an “x” wave. They are all corrective in nature.

Triples are rare.

Doubles are labeled w-x-y, while Triples are labeled w-x-y-xx-z.

Only a Double Sideways is illustrated below.

Double Sideways

Triangle (CT and ET):

A Triangle is a common 5-wave corrective pattern, labeled A-B-CD-E, that moves counter-trend.

Triangles move within two channel lines drawn from Waves A to C, and from Waves B to D.

A Triangle is either Contracting (CT) or Expanding (ET) depending on whether the channel lines are converging or expanding.

Expanding Triangles are rare.

Contracting Triangle

Degree or Time Frame:

An Elliott pattern may span minutes, days, years or even centuries. To indicate the approximate time span of an Elliott pattern, it is labeled with one of ten possible “degrees”.

• Submicro – minutes to hours
• Micro - hours to days
• Subminuette - days to weeks
• Minuette - days to months
• Minute - weeks to months
• Minor - weeks to quarters
• Intermediate - months to quarters
• Primary - months to years
• Cycle - quarters to years
• Supercycle - years
• Grand Supercycle – decades or longer

Every Elliott Wave pattern is, in itself, the building block of a larger Elliott pattern, also known as the “next larger degree”.

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Forex exchange market

Posted on June 15th, 2008 by admin, under forex brokers.

Forex market is the interbank market, formed in 1971, when international trade shifted from fixed to floating exchange rates. This combination of agents foreign exchange market transactions on the exchange specified amounts of currency of one country to another currency on an agreed rate at a certain date. When the exchange rate of one currency for another defined very simply: supply and demand - the exchange on which both sides agree.

The volume of world foreign exchange market operations is constantly growing. This is linked to the development of international trade and lifting currency restrictions in many countries. The daily volume of conversion transactions in the world was in mid-1998 1 trillion 982 billion U.S. dollars (per share of the London market accounted for approximately 32% of daily turnover, New York exchanged about 18%, the German market - 10%). Impressive is not only in itself volume of transactions, but also the speed with which observed the development of the market: in 1977, the daily turnover stood at five billion U.S. dollars over ten years he rose to 600 billion and reached one trillion dollars in 1992. About 80% of all transactions account for speculative transactions, which seek to profit from the games at the difference in exchange rates. The game that attracts many participants, as financial institutions and individual investors.

Consequently, the highest rate of development of information technologies in the past two decades, the market itself has changed beyond recognition. Surrounded by caste mystery once glamour profession currency dealer has become almost mass. Currency transactions, the former privilege of only the most recent major banks monopoly, are now commonly available, thanks to e-commerce systems. And the biggest banks themselves also often prefer to trade in electronic systems to individual bilateral transactions. The share of electronic Forex brokers now account for 11% of the market FOREX. Daily volume of transactions of the largest international banks reaches billions of dollars.

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Forex indicators

Posted on June 13th, 2008 by admin, under forex indicators.

Computer forex indicators allow automate the process of technical analysis and forecasts for forex. Indicators are based on market analysis by a clear scientific theory and application of digital filtering algorithms. In general, indicators can be used on any markets, not only Forex. They can be used in the markets for futures, stock markets and other financial instruments. The most popular indicators are

Moving Average, MACD, RSI, Momentum, Stochastic, Ichimoku.

Forex technical indicator is mathematically calculated transformation of price and volume of financial instrument together or separately, which is able to predict further price changes. Forex indicator gives trader an opportunity to make the right decision about the timely entrance to the market and withdrawing from it, and also what is position more expedient to open get an income on Forex.
There is a huge number of Forex indicators. It is very difficult to described each accurately but essentially many of them duplicative one another with only minor differences.

Indicators are divided into 3 groups by its functionality:
• Indicators of trend (tendencies), which indicate the direction of the price, synchronously or with a small delay determine the continuation or changing of trend.
• Oscillators which with small going ahead or synchronously determine continuation or changing of tendency.
• Psychological indicators which determine the moods of market participants.

Indicators may be built both in a separate window and can be demarcated on the price graph in the Metatrader 4 terminal, while in the Forex several indicators can be used in combination, which allows predict the behaviour of prices more accurately.
Metatrader 4 platform provides a wide choice of built-in forex indicators.

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Forex Broker Comparison

Posted on June 11th, 2008 by admin, under forex brokers, forex platforms.

Forex Broker Comparison

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