Elliott Wave is a rather popular but complex theory that found increasing popularity among both novice and expert traders recently. Even though the EW theory does not stand as it was originally designed, a lot has been retained from the previous notions. The complexity of EW does not lie in complicated theoretical knowledge or in-depth expertise in trading. What makes it a bit confusing for traders is the burden to implement the theory in practice.
Elliott Wave is based on two wave types: impulse and corrective waves. Each comes with defined stages according to the market and investors’ behaviors and it is crucial to identify these stages correctly.
However, it is pretty much difficult to assess the wave stage with a naked eye due to the complexity of the signs and the similarities between the stages. That is why algorithmic software programs prove to be exceptional tools in identifying wave stages and conducting a thorough wave analysis.
Elite CurrenSea, which is the recently emerged European fintech startup within the financial services industry issued an extensive guide to Forex wave patterns and Elliott Wave trading concepts in general for both manual and algorithmic trading. This reference guide is an ideal resource for the visualization of the most significant internal wave size correlations.
Overview of Elite CurrenSea Elliott Wave guide
The guide perfectly accomplishes its goal to introduce the basics, significant concepts and must-know elements of the Elliott Wave theory.
The readers will come across a simple-to-understand description and explanation of the basic EW rules classified according to retracement levels, extension targets, the common targets and the least common targets. All the information provided within the guide is visualized on graphs and charts that are attached to the reference guide.
We can divide the whole text in two major sections. The first section is concerned with the analysis of each Elliott Wave along with its specifications and technicalities. The first part covers impulse motive wave, diagonal motive wave, zigzag corrective wave, flat corrective wave, triangle corrective wave and corrective wave complex combinations.
Each subchapter on the specific wave type starts with the wave description and lists the main rules, guidelines, and Elliott Wave Fibonacci Retracement and Extension Guidelines. All of the important concepts are provided visually, as well in terms of bars and charts.
The second section is probably the most unique and characteristic only to Elite CurrenSea guide. While you can find basic Elliott wave descriptions freely available everywhere, you will hardly encounter other significant concepts such as wave degrees, alteration, balanced proportions, etc. This is exactly what the Elite CurrenSea team covers in this section, making the guide one of the most useful resources Elliott Wave traders can find online.
Finally, the guide comes with an unusually thorough ‘frequently asked questions’ section, where the team responds to every common concern or topic raised by the traders. The FAQ section answers to many important questions such as:
• How can I recognize an ABC correction?
• How can I make Elliott Wave predictions?
• How long does it take to get waves? How long will it take for a wave formation?
• How do you use Elliott Wave in Forex?
If for any reason, this guide seems not sufficient for the readers, the Elite CurrenSea team also has a 580+ book dedicated to various algorithmic trading concepts and strategies and the book covers Elliott Wave trading even in greater detail. The SWAT ebook offers many other insights and conceptual knowledge apart from Elliott Wave, such as support & resistance, trend and momentum, price action and price patterns.
Those readers who get acquainted with the book can learn to translate their analysis into actual trading decisions. The SWAT methodology is a unique trading model designed by the very best expert traders worldwide with the major tools being based on moving averages, fractals and fibonacci.