Elliott Wave Theory

The Elliott Wave theory constitutes the main price action based “Forecasting” methodology for this website.

Top traders including Paul Tudor Jones have credited their success to the Elliott Wave Principle.

Many traders have deemed it to be a time tested and proven trading system that actually works.

Its effectiveness lies in its ability to anticipate potential high probability market moves in critical zones.

And it does this by identifying extreme turning points based on the psychology of the mass market participants.

This “Price Action” based trading strategy forms the core foundation of our website’s main trading strategy.

Market Structure

Establishing valid “Market Structures” should be the top priority of any trading system, period.

Market structures aren’t just about identifying simple Support & Resistance levels on the charts.

Price movement in the markets is a result of many different factors.

It is a combination of technical, economic, geopolitical & sentimental factors all happening in unison and in real-time.

Market structures are one of the most relevant “Tell-Tale” trails left behind by price itself.

Fibonacci Retracements & Extensions

The naturally abiding Fibonacci rules typically form an integral part of any form of technical analysis.

And this is even more effective when we apply it in conjunction with our Elliott Wave trading strategies.

The overlapping “Confluence” of Fibonacci retracements and Fibonacci extensions tends to result in high probability “Reaction Zones”.

In addition, the odds are further stacked in our favor if these so-called reaction zones “Coincide” within the completion of standard Elliott Wave impulsive or correction structures.

Candlestick Patterns

Candlesticks have long been used by generations of traders to determine price direction and momentum.

Candlesticks build patterns that predict price direction once completed.

But the key attribute of its success ultimately lies in the popular phrase “Location, location, location”.

The “Location” on the charts where the candlestick pattern occurs is critical to whether the price move plays out successfully.

Again, the probability of “Success” will be greatly amplified if it happens within the “Reaction Zone” previously determined.

Alternative View Scenario

Typically, most traders tend to be “Biased” in their trading decisions.

“Cognitive Bias” is very real and often detrimental to long term trading success.

And in trading Elliott Wave, there is often more than one alternative the trade can play out.

But traders only like to focus on the “Good Stuff”, things they want to see and hear.

While ignoring the “Bad Stuff”, things that might tilt the trade to the dark side.

It is imperative that we are aware of the “Pros & Cons” of both scenarios before making a trading decision.