What Forex trader isn't looking for a way to improve trading on the currency market? I know, I can always use another trading strategy. I never have enough good trading indicators. As a result, I have decided to review one of the best known and helpful Forex trading indicators: The Elliot Wave.
In the 1920s a man named Ralph Nelson Elliott learned that the markets did not conduct themselves in an erratic manner but actually moved in consistent and dependable waves. He held that there were cycles in which the market moved and it largely because of the emotions of traders which kept these waves continuing.
It was the consistent patterns that he observed and led him to eventually label as "waves." This later developed into a theory which is commonly referred to as the Elliot Wave Theory.
A commonly accepted form of the theory:
1st Wave: The currency has its initial jump which is mainly due to the emotions of traders. The currency, in turn will move higher. A large group of investors "believe" the currency will continue to go higher so they get in on it.
2nd Wave: The first wave group has a good deal of investors that feel they got enough out of the run on the currency so they bail out to take their profits off of the table. This leads more investors to get in on the currency as the dip in price leads many to think that the currency is a great deal once again.
3rd Wave: This is where the currency gains great attention from a large group and shoots up to make its new highs.
4th Wave: Back to wave 2 as many take the profits off of the table and the currency dips lower. In the end there are those who jump back open as they see a reduction in price as a means to a "great buy."
5th Wave: This is where a massive swell of Forex traders come in on the currency. It will eventually become overpriced.
The Elliot Wave is a great Forex trading indicator. Any trading strategy has it good and bad points. I highly recommend using good Forex trading software with reliable trading signals to compliment any trading system.
I have included a review of the three most popular software programs on the market.
I wish you good trading ahead.
Get an Objective Review of the Most Popular Forex Trading Software Programs. http://www.Forex-Trading-System-Review.com is the place to visit.
See What Forex Trading Software REALLY Works! forex-trading-system-review.com is the place to visit.
Reuters - Stocks rose in a choppy session on Wednesday after lawmakers reached a compromise deal on a $789 billion stimulus package that is seen as crucial to reviving the recession-hit economy.
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