Introduction to Forex and Elliot Wave Degrees

Introduction to Forex and Elliot Wave Degrees

As a Forex trader always tries to make more profits than losses from fluctuations in exchange rates between currencies in the Forex market, in short, that is what is called forex trading.

And if you want to become a profitable forex trader, you need good technique to predict market behavior over time, ie as a currency value will be around in the next period of time you are interested in trading.

One of the best techniques can be used to forecast the Forex market is by using the Elliott wave theory.

Ralph Nelson Elliott also noted that the market has strong tendencies that seem to follow a repetitive pattern in all the different time frames, and after analysis of a large number of charts he discovered in the late 1920s that the markets are moving in a repetitive manner that is far away from being totally chaotic behavior.

And this was not all Elliott discovered he also realized that it had a fractal nature patterns. This means that models are not only repeated over time, but that at a given time period characteristic wave pattern would be repeated at different scales (days, hours, minutes).

This is the most basic concept in the theory of Elliot, ie, the largest wave structures are composed of smaller sub waves, and these in turn are composed of even smaller sub waves and, in principle, it goes to infinity.

Elliott gave the name of these wave structures calling them "wave degrees, depending on the time frame is seen. The range of these stages go from centuries hours.

Elliott Wave Nine outstanding grades in their studies, they are known as:

- Grand Supercycle

- Supercycle

- Cycle

- Primary

- Average

- Minor

- Minute

- Minuette

- Under a minute

In general, these degrees can go to infinity and they clearly show you can choose a time frame do you like better, according to your trading goals, and the patterns you see will be the same in any of these time frames.



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