Finding the end of an Elliott Wave is no easy task. Those who attempt it often end up frustrated because, before pinpointing the actual end, they face several consecutive losses that exhaust them mentally, leaving their losses to outweigh their gains. The good news is that we can improve the precision of identifying the end of a cycle by analyzing price action from different perspectives, increasing the probability of success. In this post, we’ll show you how it’s done and the steps to find the end of a wave with less effort and greater confidence.

In the SPX500, we were looking for the end of Wave Two to follow the bullish movement. By incorporating momentum analysis through the MACD and volume and price behavior, we can pinpoint where the price marks the wave’s end. At that moment, we switch to a lower time frame to refine the entry point, reduce the stop-loss distance, and multiply the trade’s outcome by improving the risk-reward ratio.

You might wonder if this methodology can be applied to other markets, and the answer is a resounding YES. We use tick volume to approximate actual volume in decentralized markets like forex, cryptos, etc. This information is sufficient to validate trades and confirm operations.

Wishing you a great start to the week and much success in all your trades!


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Editors’ Picks

EUR/USD: Focus is now of US inflation

EUR/USD: Focus is now of US inflation

EUR/USD traded with marked gains and managed to briefly test the area beyond the 1.0300 hurdle on Tuesday, on the back of the weaker Greenback and rising caution ahead of Wednesday’s publication of US CPI readings.

EUR/USD News
GBP/USD weak below 1.2200 amid UK bond market concerns

GBP/USD weak below 1.2200 amid UK bond market concerns

GBP/USD retains its weak tone, trading sub-1.2200. The Pound Sterling lost ground amid another run in UK Gilt yields, reflecting the bond market instability. The US Dollar remains unattractive after December PPI figures. 

GBP/USD News
USD/JPY rises sharply to near 158.00 Yen’s safe-haven appeal falters

USD/JPY rises sharply to near 158.00 Yen’s safe-haven appeal falters

USD/JPY gains to near 158.00 as the safe-haven demand of the Japanese Yen has eased. Investors await the US inflation data for fresh guidance on interest rates. Fed dovish bets have lately trimmed on upbeat US labor market data for December.

USD/JPY News

Editors’ Picks

AUD/USD: Recovery should be limited

AUD/USD: Recovery should be limited

AUD/USD added to Monday’s advance and managed to surpass 0.6200 the figure on the back of further USD selling, while investors warmed up for US CPI data and the Australian labour market report.

AUD/USD News
EUR/USD: Focus is now of US inflation

EUR/USD: Focus is now of US inflation

EUR/USD traded with marked gains and managed to briefly test the area beyond the 1.0300 hurdle on Tuesday, on the back of the weaker Greenback and rising caution ahead of Wednesday’s publication of US CPI readings.

EUR/USD News
Gold pressures intraday highs as mood sours

Gold pressures intraday highs as mood sours

 XAU/USD is finding a floor for now to bounce off after its sluggish Monday performance when Federal Reserve (Fed) policy rate concerns took over sentiment, recovering slightly and trading near $2,670 on Tuesday. 

Gold News
Chainlink Price Prediction: Whales acquire $20M in LINK as XRP, DOGE lead market recovery

Chainlink Price Prediction: Whales acquire $20M in LINK as XRP, DOGE lead market recovery

Chainlink price edged towards the $20 territory on Tuesday, racing into a 10% surge as the crypto market received a major boost ahead of Donald Trump’s inauguration. 

Read more
Small business optimism shoots up in December

Small business optimism shoots up in December

Small business sentiment continued to improve in December alongside greater economic and public policy certainty. The NFIB Small Business Optimism Index rose 3.4 points to 105.1, reaching its highest level since October 2018. 

Read more

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Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

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