Price behaviour using EWT A case study on Yen - top 5 forex trading signals

Price behaviour using EWT A case study on Yen ~ top 5 forex trading signals

I have still not yet found any chart theory or technical methodology that can can be used as a market predictive tool like the elliot wave theory. 

Elliot waves theorys ability to distinguish distinctly between a trend and correction is itself a tool which, if well used, builds confidence in a trader.

On 3rd June, I posted an analysis on Yen titled What the charts are saying about Yen. 

Using elliot wave theory, I was able to predict in advance a turning point for major Yen pairs. Check how price respond to the forecast and their position afterward.

As an elliot wave theory trader, it is important to understand that nothing is concrete until price validates it. Elliot waves theory discusses how price behaves when trending and correcting. These are also known as Patterns.

Patterns help us to understand and predict what next price could do. When these patterns are put into larger structure, there is in a traders hands, very powerful tools.

After more price actions, I posted an update on the analysis above which I titled Yen is expected to strengthen across board . In this analysis, I singled out UsdJpy and CadJpy which I shorted. UsdJpy was shorted at 124.05 while CadJpy at 99.7. The two pairs dipped especially CadJpy.

CadJpy hit my final target while UsdJpy didnt. I watched 25% of the my UsdJpy opened position hit at break even. CadJpy ran to my target in an explosive manner.

One lesson I want us to learn from this post is how to read price behaviour using elliot wave theory. The chart below shows how UsdJpy dipped and the rally that followed.

 

 

There are two things that support that the bearish move from 125.85 was a mere correction.

1. The dip from 125.85 was a deep (double) zigzag corrective pattern. The leg W was a zigzag, X was a flat and Y was a zigzag.

2. Price advanced from Y in a typical 5-wave impulsive move. This signaled a possible first wave of the bullish resurgence.

Price is expected to dip to probably around 122, and if bounce from there should continue moving up.

I will wait and see what price is saying as I try to unlock an inherent tradable pattern.

You can also watch and what better tool to use if not elliot wave analysis?

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Perfect Forecast of JP Morgan The Power of Alternative - forex trend trading signals

Perfect Forecast of JP Morgan The Power of Alternative ~ forex trend trading signals

On 8th June, I posted an analysis here titled JP Porgan as caught on elliot wave on how I expected JP Morgan stock price to move in time to come.

I had two scenerios. While I favoured the first, I kept an eye on the second. i wrote about the favoured analysis below.

Prices are tending high in a non-overlapping impulsive trend. The recent rally which I labeled as the third wave of the impulsive move is ending in an expanding diagonal formation.

 

 In expanding diagonal, wave 5 is greater than wave 3 which is greater that wave 1; wave 4 is greater than wave 2 and the connecting trendlines, upper and lower, show that prices should continue the rally to $70 where a minor dip to $65 region  is very likely before a further rally to probably $72.

 

What happened afterward?. Price rallied to $70, dipped to form the 4th wave in a zigzag correction at $65 and now advancing toward $72. We will see price reaction at $72.

 

 

 

There could be a major slump in the price of Jp Morgan soon. We can watch and analyse with the help of elliot wave theory.

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