Welcome to summer school. This level will focus on two very important things you will need to know about the forex market. The two main topics of discussion in this level are meant to equip you with skills that are more advanced that just the basic chart reading.
The theories postulated in this level have been used for a long time by the best traders in the world to make a killing in the FX market. The ingenuity of traders in dependent upon them knowing something that the other people do not know and that is what this topic is about. Your forex education would not be complete without this part.
The two main topics of discussion here are:
- The Elliot Wave Theory
- Harmonic Price Patterns
Let’s look at some of the highlights about what is forex in the context of these topics.
The Elliot Wave Theory
Using 75 years of data, an accountant named Ralph Nelson Elliot, came up with a simple theory that seemed to show a certain pattern that kept on repeating itself. His conclusions were that the
repeating way the Forex patterns seemed to work, were affected by the emotions and psychological patterns of the people involved in the online trading.
In this module, you will learn how to identify when these emotions and psychological markers are shifting and how to capitalize on that.
Under this topic, you will also cover the following subtopics:
- What are impulse waves?
- What are corrective waves?
- Fractals: The Elliot waves present within an Elliot wave.
- The top three cardinal rules for Elliot Wave Theory
- How to trade forex using Elliot waves
The topics will delve into the major details and points of each of the things you must look for when you are using Elliot Waves to try and predict the way that the market is headed. After this lesson, you will start the second module that delves deeper into Harmonic price patterns for better foreign exchange market understanding. Here is what you can expect.
Harmonic Price Patterns
After looking at the basic chart patterns in the previous levels, you will need to enhance those skills by knowing some of the more advanced parts of patterns. These come in the form of Harmonic Price Patterns. They may be a little hard to grasp but once you get them, you will have no trouble making good profits in your forex trading endeavors.
They will help you spot things like potential retracement of precious trends. We have discussed some of them in previous levels where we talked about things like extensions and Fibonacci retracement.
When combined, these tools will show you harmonic price patters and they will show you the overall trend so you can easily predict where the prices are going to go next for better trading. In understanding harmonic price patterns, you will be taken through the subtopics, which will include:
- The ABCD and the Three-Drive patterns
- Trading the Gartley Patterns
- 3 steps to trading harmonic price patterns
At the end of this, you will find out that it is not easy to identify harmonic price patterns. You need to understand the steps well and analyze everything keenly to spot the harmonic price patterns. When you do identify them, you can make good profits when doing currency trading with the best brokerage accounts.
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Elliott Wave Theory, Impulse Waves and Corrective Waves
Harmonic Price Patterns, ABCD and the Three-Drive, Gartely Pattern