What is Elliott Wave Principle? How to apply it in markets?

What is Elliott Wave Principle? How to apply it in markets?

By Waves Strategy Advisors, For more information visit www.wavesstrategy.com or write to helpdesk@wavesstrategy.com

We always hear Elliott wave principle in the markets and many of them have also tried their best to learn or read this theory. The challenge that many faces are to practically applying it and how it looks on charts?

Freely traded markets are the only sources that reflect the collective behavior of humans and the current social mood. Highly liquid markets cancel out the random events and what is left is the social mood of the mass and that indicates what we can expect in the future. We believe that any freely traded markets like Equities, Forex, Commodities move in the form of repeatable wave patterns that exhibit fractal nature at various degrees. This behavior was first observed by Ralph Nelson Elliott in1930s and was later revisited by Robert Prechter in 1980s. This study of waves is now famously known as Elliott Wave.

If we can identify repeating patterns in prices, and figure out where we are in those repeating patterns today, we can predict where prices are headed in future.

How to begin applying Elliott Wave principle?

The Elliott Wave Principle works by identifying patterns in market prices. So, in other words, we start by analyzing waves on a chart. Patterns consist of Impulsive as well as Corrective waves.

 Elliott Wave Principle helps investors in deciding where to get in, where to get out and at what point to give up on a strategy. Trust us, it is worth the time and efforts learning this theory and you will be thrilled to see prices turn from the exact level you have derived. Wave counts with other technical tools like Fibonacci retracements, Indicators etc helps to increase accuracy of predicting the market.

An Elliottician is someone who is able to identify the markets structure and predict the medium term to long term view on markets using wave counts and wave patterns. By using the Elliott Wave Principle, we can identify the highest probable scenarios which in turn help in devising trading strategies.

To learn Elliott wave Principle and how to apply it practically register for our training sessions which are scheduled on 13^th – 14^th April 2013 in Mumbai. To know more details about the training sessions write to us at helpdesk@wavesstrategy.com or call us on +91 9920422202 / +91 22 28831358. Visit www.wavesstrategy.com