Forex Wave Analysis and Forecast


Bad signs with China’s spiralling PPI inflation
Bad signs with China’s spiralling PPI inflation
Producer prices in China are developing an acceleration, prompting a reaction from the authorities. Annual producer price inflation accelerated to 9% in May. This is the fastest rate...
Summer market lull or the start of a correction?
Summer market lull or the start of a correction?
Asian markets developed gains on Friday, supported by the Biden administration’s plans to push through a $6 trillion budget spending package for 2022. Japan’s Nikkei225 j...
US Jobs data progress isn’t welcomed by markets
US Jobs data progress isn’t welcomed by markets
The number of initial jobless claims in the USA fell by 38,000 to 406,000 in the week to 22 May. This is a new low since the start of the pandemic, marking a labour market recovery. ...
Fed speakers press on the USD, boosting Techs & commodities
Fed speakers press on the USD, boosting Techs & commodities
Fed officials continue to extinguish the inflationary panic and help markets return to last year’s major trends. In particular, yesterday, we saw an acceleration in high-tech s...
GBPCHF Wave Analysis 13 May, 2021
GBPCHF Wave Analysis 13 May, 2021
GBPCHF currency pair recently reversed down from the resistance area lying between the pivotal resistance level 1.2810 (former support from March and the top of wave (b) from April) ...
CADCHF Wave Analysis 13 May, 2021
CADCHF Wave Analysis 13 May, 2021
CADCHF recently reversed down from the resistance area lying between the strong resistance level 0.7525 (which stopped the sharp uptrend at the end of March) and the upper daily Boll...
Pound rallying on the doomed Scottish referendum
Pound rallying on the doomed Scottish referendum
GBPUSD is rallying, adding more than 1% today up to 1.4150 on reports that UK Prime Minister Boris Johnson has ruled out the possibility of a Scottish referendum. However, the electe...
More pressure for the dollar
More pressure for the dollar
Friday’s US labour market report delivered a notable blow to the dollar, likely confirming the prevailing downward trend in the near term.
US housing: more price acceleration
US housing: more price acceleration
House prices in the USA are developing their acceleration. In February, the Federal Housing Finance Agency price index renewed its record growth rate to the same month a year earlier...
The stock market seems overheated. Sell in May?
The stock market seems overheated. Sell in May?
The US S&P500 closed Monday at historic highs. Its futures also remain near record highs, while Asia-Pacific indices are losing 0.15%, unable to support America’s positive ...

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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