In this technical blog we’re going to give you some tips on how to avoid one of the most common traps in Elliott Wave trading. We will try to close you to our strategy, emphasizing importance of trading with the trend.

Many beginner traders believe that spotting formation of a good pattern or clear Elliott wave count on 1 Hour, 30 minutes or even 15 minutes time frame is enough to make good trading decisions. Unfortunately that’s not the case. Trading in that manner leads to many negative trades and missed opportunities, however many traders keep falling in that trap.
At Elliott Wave Forecast, our market experts follow more than 50 global financial instruments and base forecasts on the most clearest structures at any given time. We spot incomplete swings sequences in higher time frames like 4 Hour , daily or even weekly charts and look for potential entries on lower time frames. Patterns in short term are used only to determine potential entry areas so we can go with the flow of the major trend.  Before we continue, here’s a short reminder :check out new EWF blogs and Free charts.

We’ll explain more through EURUSD example

The chart below is a 1 Hour Elliott Wave London update of EURUSD from 11.15.2016. The pair has made clear 3 wave Elliott wave bounce from the lows. Second  X  connector is about to complete at 1.0808-1.0848 ( sell zone).We advised our members to avoid buying the pair and favor the short side.

EURUSD

It’s important to understand that we didn’t base our bearish forecast and sell decision on 1 Hour price structure and we used this time just to determine the inflection area and potential entry zone : 1.808-1.0648. 1 Hour Elliott Wave analysis is only the tip of the iceberg. True essence lies in the deep swing-cycle , distribution and market correlation analysis of the higher time frames. In this case, we look at the daily chart to spot an incomplete bearish sequence from 5.3.2016 peak which was calling for more downside to reach the target area.

EURUSD Weekend Elliott Wave update 11.12.2016
The price is  showing incomplete bearish swings sequences in the cycle from the 5.3.2016 peak (1.1617). The decline from the mentioned peak is unfolding as a clear 7 swings structure. It’s suggesting further decline as 7th swing is missing the target area 1.0656-1.0489. Eventually the price reached the mentioned target area, making decline of approximately 300 pips from 1 Hour sell zone 1.808-1.0648.

EURUSD

Our market experts educate members constantly through live sessions, also providing you with money management and trading psychology tips. With us you keep growing not only as an Elliott Wave analyst, but also as a trader.

FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.

Education feed

Editors’ Picks

EUR/USD: Buyers struggle for follow-through, focus on Fed

EUR/USD buyers are struggling to find follow-through, having successfully defended the psychological support at 1.10 on Tuesday with a bullish hammer candle. The Fed may validate the renewed expectations for a 2020 rate cut. 

EUR/USD News

GBP/USD: Modestly flat above 1.3000, Huawei talks in the spotlight

GBP/USD sellers catch a breath after four consecutive days of declines. The UK’s favor for the Chinese tech giant negatively affects its friendship with the US. Brexit headlines keep calm while BOE readies for the decision.

GBP/USD News

USD/JPY fills Monday's bearish gap ahead of Fed interest rate

USD/JPY has filled the gap created by Monday's negative open. Coronavirus fears have subsided in the last 24 hours, allowing recovery in USD/JPY. The respite could be short-lived if the Fed sounds dovish, sending the US dollar lower. 

USD/JPY News

Editors’ Picks

EUR/USD: Buyers struggle for follow-through, focus on Fed

EUR/USD buyers are struggling to find follow-through, having successfully defended the psychological support at 1.10 on Tuesday with a bullish hammer candle. The Fed may validate the renewed expectations for a 2020 rate cut. 

EUR/USD News

GBP/USD: Modestly flat above 1.3000, Huawei talks in the spotlight

GBP/USD sellers catch a breath after four consecutive days of declines. The UK’s favor for the Chinese tech giant negatively affects its friendship with the US. Brexit headlines keep calm while BOE readies for the decision.

GBP/USD News

USD/JPY fills Monday's bearish gap ahead of Fed interest rate

USD/JPY has filled the gap created by Monday's negative open. Coronavirus fears have subsided in the last 24 hours, allowing recovery in USD/JPY. The respite could be short-lived if the Fed sounds dovish, sending the US dollar lower. 

USD/JPY News

Federal interest rate preview: Stable policy and an uncertain future

The course of the American economy has not altered since the previous FOMC meeting on Dec last year. 4Q growth is expected to be 2.1% when the preliminary figures are released by the Bureau of Economic Analysis on Thursday.

Read more

Gold: Bulls looking for a discount in $1560s

Gold top in the making with a weekly shooting star and weekly divergence. The price of gold has been found floundering between 1580 and the 1560s following a surge at the start of the year to the highest levels since March 2013 at $1,611.

Gold News

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology