How Trade Elliott Wave Effectively

There are many ways to getting the benefit in Forex market, one of my favorite method is Elliott wave count. Elliott wave trading gives me so many good and accurate trading signals. With Elliott wave count we can read the current movement to analyze potential trend in the next movements. With these Elliott wave calculations we can find the good chances of the next market price sentiment probabilities.

Getting a good analysis of the market price is a good benefit. The other good thing is that this strategy can aid us calculate the movement in our trading chart by determining potential movement patterns of the market trend, its also called as a reversal. With using Fibonacci, we can define profit targets and stop loss level.

Elliott wave has very simple pattern, fluctuates int the bias of the market trend consists with 5 wave and reversal movement in 3 waves. Fluctuates in the trend direction will be counted on our trading chart platform and named impulse waves. Trades against the market trend named reversal or correction are described bellow.

To aid you find what ordinary character of waves, you can read bellow information of all waves. With knowing these pattern characteristic you can easily find the bigger chances, and when we counted the market movement correctly we can read the next movement clearly.

Wave 1: Price is trading higher
Wave 2: Reverses but not 100% of first wave
Wave 3: The biggest movement
Wave 4: Reversal movement
Wave 5: Small movement, and sometimes you will see divergence in this wave
Wave A: Reversal movement.
Wave B: Fake movement or still moving in trend.
Wave C: Reversal movement

You can use MACD moving average convergence divergence to help calculation in Elliott wave system.