Elliott Wave Updates In FOREX

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Elliott wave in FOREX has been controversial. There are many who live by it and many who die trying to figure it out. Once understood, Elliott wave theory can often bring in a windfall of pips. I will post some training articles here in the future if you don’t understand it yet.

GBP/JPY Elliott Wave Analysis

GBP/JPY – 145.17

GBP/JPY – Wave 4 correction from 118.87 has ended at 163.00

Despite falling marginally to 139.30, the strong rebound from there suggests the wave I of 5 has ended there (instead of 139.75) and minor wave ii correction is taking place with 1st leg of wave 2 just ended at 149.10 last Friday and consolidation would take place but downside should be limited 143.00 and bring another rebound in c leg of wave 2 to 150.00 and possibly to 152.00.

Our preferred count is that larger degree wave V with circle is unfolding from 251.12 with wave (I) 219.34, (II): 241.38 and wave (III) is subdivided into 1: 192.60, 2: 215.89 (23 Jul 2008) and wave 3 ended at 118.87 earlier in 2009. The correction from there to 162.60 is wave 4 which itself is a double three and is labeled as first a-b-c ended at 151.53, followed by wave x at 139.03, 2nd a ended at 162.60, 2nd b at 146.75 and 2nd c leg of wave 4 ended at 163.00. Therefore, the decline from 163.00 is the beginning of wave 5 with minor wave i of 5 has ended at 139.30 and wave ii might bring another bounce to 153.20.   –more

USDCAD—What’s with this pair?

I’ve ignored this pair the last couple of days although I’m still long. About the best that can be said is that my trade from 1.0413 is still up (currently +163 pips) after faltering a bit yesterday. The pair is coiling inside a symmetrical triangle. While it coils, it should be building energy for a subsequent move, up or down. Often, symmetrical triangles are continuation patterns and if we’re talking Elliott Wave (EW), practitioners believe that price continues in the same direction. If one looks at the downtrend since March, one would believe the breakout will be downwards.

However, if USDCAD is basing, as I’ve believed since mid-October, then the breakout would be upwards. Regardless, right now there is nothing to do with this pair except watch it.  –more

Related FOREX and Elliott wave articles

• 9 Trading Tips To Become A Successful Forex Trader (bigdaddyrichard-swirlingthoughts.blogspot.com)
• Forex Strategies: The Keys To Becoming A Success At It (wealthyways4you.com)
• Riding the Waves of Irrational Behavior (time.com)