Foreign exchange (FOREX) market is known as over the counter financial market for currency trading and has a huge trading volume. There are many trading systems and I am aware of all development since many years ago but today I am using Elliott waves theory for describing past moves and prediction what will be the next.
The Elliott Waves is a way of people behavior in area involving primitive judgment including in financial decision. It reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific and measurable patterns.
The financial market including Forex does not react to outside event consistently but to our inside primitive judgment in area of unforeseeable event. Using Elliott waves is an exercise probability and with the knowledge of waves pattern we are likely to expect what will be the next moves.
Elliott waves pattern consists of “impulsive waves” and “corrective waves.” An impulsive wave is composed of five subwaves. It moves in the same direction as the trend of the next larger size. A corrective wave is divided into three subwaves. It moves against the trend of the next larger size.
They would be a mistakes here and there but by exercises I am looking for a better trade entry and exit using the Elliott waves principle as a major government in forex decisions.
Thank you,
Azamli Nawi
MD.
