• 2 hours 3 Oil Stocks Ready To Weather The Geopolitical Storm
  • 20 hours Gold Miners Eye Big Third Quarter Profits
  • 1 day The U.S. Doubles Down On Domestic Lithium Production
  • 2 days Reddit Trader Scores 14,000% Returns On Rogue Trade
  • 3 days The Tangled Web Stretching From Turkey To DC
  • 3 days The U.S. Dollar Eyes Greater Upside
  • 3 days More And More Americans Believe A Recession Is Looming
  • 3 days Is The Pot Stock Boom Over Already?
  • 4 days How The California Utility Crisis Could Have Been Avoided
  • 4 days The Ugly Truth About Investing In Private Equity Deals
  • 5 days The World Is Facing A $1 Trillion Food Waste Crisis
  • 5 days Is It Time To Buy The Dip In Gold?
  • 5 days The History Of Oil Markets
  • 6 days Three Stocks To Watch Ahead Of Earnings Season
  • 6 days Markets Flat As Bulls And Bears Battle It Out
  • 6 days The Mining Industry Still Has a Human Rights Problem
  • 7 days 5 Billionaires Booted From Their Own Companies
  • 7 days Can Toyota's Hydrogen Car Take On Tesla?
  • 8 days Why Universal Basic Income Won't Work
  • 9 days Is This The Real Golden State?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Elliottwave-Forecast

Elliottwave-Forecast

Elliottwave-Forecast

Elliottwave-Forecast.com (by EME PROCESSING AND CONSULTING LLC) was founded in 2005 by Eric Morera. Since inception our company has provided tailored Financial Market Services to…

Contact Author

  1. Home
  2. Markets
  3. Other

Elliott Wave Theory: Catching Wave III or C

Elliott Wave Theory is a great tool for traders when the traders understand that it is only a tool to help them anticipate a big move. The dream of traders using Elliott wave is always to see the Market rallying in their direction and the Plan becoming a reality. The Market moves in sequences which is either Impulsive or Corrective. Impulsive waves move in a sequence of 5, 9, 13 while corrective waves move in a sequence of 3, 7, 11.

The fact is that in today's Forex market, the sequences are more Corrective than Impulsive, and it's almost impossible to see a perfect 5 waves move in the era of High-Frequency Trading. Today, it's more common to see 5 waves sequence in Indices and Commodities instead. However, in reality it doesn't matter whether market moves in impulsive or corrective sequence when traders understand that both impulsive and corrective sequences share similarities until the third swing. The only difference between the two is that in impulsive sequence, there is an extension in swing 4 and swing 5.

At Elliottwave-Forecast, we understand the limitations of the Elliott Wave Theory and we use the technique with the practical view towards trading. We use the Theory to trade what we call the Elliott Wave Hedging to allow us catch either a wave 3 or wave C. Wave 3 or C should travel most of the time at least towards 1.00%-1.618% the distance of wave A or wave 1.

Understanding different time frame cycles and how they relate with one another, combined with the knowledge of Elliott Wave sequence and Elliott Wave Hedging will allow traders to catch the powerful wave III or C. Traders with this information can use it to identify wave II or B, which has the same sequence, within the higher time frame cycles. Once wave II or B is identified, traders can then forecast the inflection area in which Market will turn in favor of the trend, thus allowing traders to anticipate and catch wave III or C.

Idealized Elliott Wave Corrective Wave-C Chart
Larger Image

Idealized Elliott Wave Impulse Wave-3 Chart
Larger Image

 


Please feel free to join us clicking HERE to sign up for an ElliottWave-Forecast subscription plan! Or you can sign up for a 14-days trial, (no commitments, cancel anytime).

 

Back to homepage

Leave a comment

Leave a comment