1 Attachment(s) Hi, I thought I wud post a egy I have been looking at for the last few weeks. Just fort I wud discuss it in the new people segment cause I doubt the experienced wud be interested. Its an excellent egy, its just having the ability to identify at which the price is in the Elliot Wave, that is the slightly tricky part.
First things first. Only gona go over a few basics of elliot wave.
You've got two main Kinds of waves:Impulsive Corrective
The impulsive wave is the biggest move, also knows as the 'trend'. Just feel that price is shing 'impulse'.
Subsequently corrective waves, you know when you get in with the trend then this b*tch of a movement takes out your stop. Thats a corrective. It happens basically since prices go higher or lower with the impulsive wave, it looses 'power' untill it exhausts the move. Subsequently price 'corrects' itself untill a new source of electricity kicks in again to keep the impulsive move (or the trend).
Eventually the power will run out completely then there will be some side-ways movement and a new trend will take place. It doesnt neccessarily reverse direction, it could continue on its previous path, such as the EURGBP.
So now we understand that that impulsive wave is the one we would like to maintain on. An impulsive wave will typically move in 5 'phases'. These are knows as wave 1, wave 2, wave 3 ,4 5.
Here is an image of what I mean: