Analyzing Forex with Elliott Wave Can Help You Catch Rallies and Declines
Free Week of Elliott Wave International’s Currency Specialty Service is here until Nov. 18, 2010
On November 1, the EUR/USD — the euro-dollar exchange rate and the most actively-traded forex pair — was trading the $1.38 range, near the level it is today.
But if you look at what the EUR/USD did between November 1 and 9, you’ll see a huge 400-point (or pip, in forex lingo) rally into the November 4 top — and an equally huge decline back to the levels we see today.
That’s an 800-pip “round trip” in just six trading days — a huge move which obviously caught a lot of the U.S. dollar bears and bulls by surprise. Could you have seen it coming?
If you know how to analyze currencies with Elliott wave, the answer is probably “yes.” Wave analysis helps you identify patterns in market charts and tells you how those patterns — ideally — should develop. In other words, Elliott allows you to narrow down multiple possibilities to a handful of probabilities.
A probability is never a certainty. But it’s better than a shot in the dark, as this example demonstrates.
On November 1, Elliott Wave International’s Currency Specialty Service posted the following end-of-day forecast. (Some Elliott wave labels removed for this article):
- [Higher, into a top] The euro is poised to thrust above 1.4160. The question is if the thrust takes place before the FOMC announcement and ends afterward, or starts in response to the announcement. Before or after, the euro should hit new highs.
What gave Currency Specialty Service the confidence to make that forecast? It was the “contracting triangle” pattern you see in the chart above. They often appear in 4th waves, right before the market’s final push in wave 5. The EUR fulfilled the forecast with a 400-pip rally into the November 4 top. The following day, our Currency Specialty Service wrote:
- The euro is reversing course after a thrust from a triangle. The decline from 1.4283 might not be in five waves, but it has the characteristics of an impulsive wave. A correction of the rally from August should reach the 1.3636-1.3700 area, the 38.2% retracement of the advance…
…which brings us to the price levels where we find the EUR/USD today. And if you’re curious to know what Currency Specialty Service has to say now, you have a great opportunity:
Free Week is live through noon EST on Thursday, November 18! You can access all the intraday, daily, weekly and monthly forecasts from EWI’sCurrency Specialty Service right now through noon Eastern time Thursday, Nov. 18. This service is valued at $494/month, but you can get it free! Access Currency Specialty Service Free Week.
Euro’s Twists and Turns: What’s Next for the Currency?
(Note: This video was recorded on November 5, 2010)
|EWI’s Forex FreeWeek is happening now! For an entire week you get free access to EWI’s intensive Currency Specialty Service. Hurry! Forex FreeWeek ends Thursday, Nov. 18.|
Free Video Lesson
Watch Jim Martens, Senior Currency Strategist at Elliott Wave International, the world’s largest market forecasting firm, give tips on how to trade forex with Elliott wave analysis – free.
- The U.S. dollar is the current center of the global financial community’s attention, and it will likely stay in the spotlight for a while. That could be good for the forex market – and you, a forex trader.
- Already the largest and most liquid market on the planet – with the daily volume ten times larger than the combined daily turnover on all of the world’s stock exchanges – recent focus on the dollar is likely to attract even more currency speculators. And that means even more volume and liquidity – a nimble trader’s paradise.
- Winning in forex is not easy. You need skill, discipline – and sometimes, just pure luck. You also need a method. You may have heard that Elliott wave analysis is something many forex traders use. It’s true; wave analysis is not a crystal ball, but it helps you accomplish three crucial goals: Identify the trend, stay with it, and get out when the trend is likely over.
- Elliott Wave International’s web site gives you multiple resources that teach you Elliott. Of course, nothing helps you learn faster than watching a good teacher. That’s why you don’t want to miss this free opportunity to learn from one of the best forex Elliotticians out there.*
- Your FREE Video Lesson: How To Trade Forex With Elliott Wave
What you are about to see is a condensed, 20-plus-minute version of Jim Martens’ live course on trading with Elliott to an audience of independent investors in Denver, CO, recorded in early November 2007. Here’s what you’ll learn:
- At its core, Elliott wave analysis is simple. Watch Jim explain why.
- What Elliott waves are best for trading forex?
- How do I identify trade setups?
- At what point in a wave pattern do I enter a trade?
- How do I manage risk with Elliott? Etc.
- Your FREE Report: Take Advantage of News Using Elliott Wave Analysis
If you’ve ever felt you could be better at trading forex around economic report releases, this is a must-read. The Forex Journal, one of the premiere forex trading magazines, recently selected this report by Jim Martens as the main feature and cover page.
- Join Club EWI to gain access to your Forex video and report, FREE! It takes just 30 seconds. Club EWI is the world’s largest Elliott Wave Community with more than 125,000 members. It only takes a minute to sign up and it’s absolutely free.
- *Who is Jim Martens?
Jim Martens was first introduced to the Wave Principle in 1985. Since then, he’s built an impressive resume, having worked for such firms as Bank of New York and Nexus Capital Limited, a George Soros-affiliated hedge fund. Since 2005, Jim has been Elliott Wave International’s senior forex analyst – and one of the best teachers of the method.
What’s the U.S. Dollar’s Next Move?
Elliott Waves Provide An Answer
This example video features Elliott Wave International Senior Currency Analyst, Jim Martens, using Elliott wave analysis to forecast the U.S. dollar’s near-term moves.
If you are interested in this kind of information we urge you to join Elliottwave International market forecasting service.
How to Use Elliott Wave Analysis to Boost Your Forex Trading
A Free Trading Video From the World’s Largest Market Forecasting Firm
This video lesson features Elliott Wave International Senior Currency Analyst, Jim Martens, demonstrating how you can use Elliott wave analysis to identify opportunities in your Forex trading.
This is just a short excerpt. For a limited time, you can access the full $79 online trading course, FREE. Visit Elliott Wave International for your free access.
You’ll get all the details behind the analysis you see in this video preview.