Forex Wave Analysis and Forecast


Correction in the form of simple zigzag seems to be over 02 September 2016, EUR/USD
Correction in the form of simple zigzag seems to be over 02 September 2016, EUR/USD

Yesterday this pair had unpleasant prompt growth. After brief decreasing bulls had possibility to change the situation and drove back bears. Bears didn’t prepare to this and pr...

Bears’ chances are going down 02 September 2016, GBP/USD
Bears’ chances are going down 02 September 2016, GBP/USD

Pair has brought surprises, but this growth could be correctional in wave 2 of decreasing impulse. But it isn’t simple zigzag it looks like plane in which developing of final inside ...

A high possibility of growth remains 02 September 2016, USD/JPY
A high possibility of growth remains 02 September 2016, USD/JPY

USD/JPY hasn’t stay aside from this price moving. Japanese currency as other currencies has moved against USD and the price has decreased rapidly. But buyers returned influence on ...

Correction 01 September 2016, EUR/USD
Correction 01 September 2016, EUR/USD

Last day wasn’t so effective for sellers as previous days. On the one hand they controlled price but on the other price didn’t decrease. Every step down was compensate it was leade...

Third wave of decreasing impulse 01 September 2016, GBP/USD
Third wave of decreasing impulse 01 September 2016, GBP/USD

This pair continues its flat movement. The price couldn’t chose the direction and goes into very narrow corridor. The wave situation hasn’t important changes so expectations are rema...

Ready to continue growth 01 September 2016, USD/JPY
Ready to continue growth 01 September 2016, USD/JPY

This pair is moving in range of expectation. Pair has not fast but confident rise and achieve new price levels. Supposedly in this moment we are observe forming extension of the wav...

Drop is going to continue 31 August 2016, EUR/USD
Drop is going to continue 31 August 2016, EUR/USD

Bears have caught the initiative and continue to control the situation. Pair is decreasing not so quick as at the beginning according to the possibility of developing the decreasing ...

3 wave of drop 31 August 2016, GBP/USD
3 wave of drop 31 August 2016, GBP/USD

Pair GBPUSD is traded without important changes of lead force. Expecting down breakthrough hasn’t happened but we can observe on the chart how price is accumulating near the 1.3050 l...

A continued growth 31 August 2016, USD/JPY
A continued growth 31 August 2016, USD/JPY

Buyers is controlling situation with USDJPY currency pair and everything goes as we have expected. Yesterday situation confirmed that pair has been rising and locked all tries of sel...

Holding short positions 30 August 2016, EUR/USD
Holding short positions 30 August 2016, EUR/USD

After the Friday's reaction of market to speech of Fed's Chair, we finally saw a good downward movement. The price decided not to descend and took a correction. The above correction ...


Be aware of price movement using wave analysis

The goal of the Elliott wave analysis is to use the price move’s laws during its work, as for the market movement is characteristic a wave-like nature. The main instrument of Forex wave analysis is the price itself (the graph). The charts, where the price moves occur, are marked by analysts on the main waves and the sub-waves, respectively. The forecasts regarding the forthcoming price moves are formed grounding on the above mentioned marks.

Determination of Preliminary Variations of Price Movement, as the Essence of Forex Wave Analysis  

The main postulates of the Elliott wave analysis state that for the price move on any market is characteristic the wave motion, which allows to forecast the further development of situation. The Forex wave analysis provided to you by the best Forex brokers enables to figure out the preliminary variations of the price move continuation, the approximate and the minimum potential of the given options, and knowing the criteria of their approval, use any of them for profit earning, realizing which one is taken for the profit earning, in order to keep the chosen wave till the end of transaction. It should identify the impulse waves and the corrective ones, as the price movement is divided into two main groups of waves:

  • Impulses - that move the wave’s price either upward, or downward (marked by numerals)
  • Corrections – the waves, used in order to react on the impulse sufficiently (marked by letters)

The Identification of Wave and Procedure of it's Plotting on the Price Chart

The market wave analysis marks out several methods in order to identify the wave, when plotting it on the chart: on the closing prices, on the maximum prices and on the minimum ones, or based on the average. For a novice trader, who just started to use the Elliott wave technical analysis, the best way for the waves plotting on the chart is the coupling together the maximum price with the minimum one, and minimum price with the maximum one, respectively. In this case the wave marking becomes visual, and the novice trader quickly “gets one’s hand “.

To reduce the risk of loss when using the Forex wave theory and for the proper calculation of stop loss size, special attention should be paid to the length of waves. Experts of the market wave analysis indicate that the longer the impulse waves are, the longer the corrective ones will be, respectively.

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