"Trend is your friend"? Yes -- but how do you know when a trend may end? Watch.
Back in February, when crude oil prices fell to $26 a barrel, you may remember a chorus of mainstream opinions suggesting that it had further to fall. Yet, oil prices shot up 60% since then.
And there's the rub: "The trend is your friend," goes the old trading adage -- but what if the trend is about to end as you're "befriending" it?
Elliott wave analysis is uniquely positioned to give you ample warning when that happens. As the editor of our Trader's Classroom service, Jeffrey Kennedy, puts it,
"One of the many benefits of the Wave Principle is that it allows us the ability to determine the maturity of a trend."
Watch this clip from Jeffrey's January 11 Trader's Classroom episode, where he shows you how ending Elliott wave patterns at multiple degrees of trend prepared his subscribers for the big bullish turn in oil.
This timeless free report shows you five invaluable advantages to using Elliott analysis in the markets you follow, as it
- Identifies the trend
- Identifies the countertrend
- Determines the maturity of a trend
- Provides Price Targets
- Provides specific points of ruin
Plus, the 6-page, chart-filled report also includes a bonus lesson on how to calculate protective stops.
This article was syndicated by Elliott Wave International and was originally published under the headline (Video) Crude Oil: See How Elliott Waves Prepare You for Trend Changes. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.