A common question I am often asked is:

How did you decide to use “Elliott Wave” as your primary technical indicator rather than some other method such as classical chart patterns or other indicators?

I adopted Elliott Wave after looking at several approaches and seeing analysis from other FX traders like Andrew Baptiste and Robert Balen….it simply made sense to me.

The other distinguishing feature I like is being able to evaluate ‘probable’ future moves in prices and objectively determine stops and profit targets. Classic charting does not allow that to the extent Elliott Wave does in my experience.

That said, I do look at classic charting techniques and indicators in conjunction with the Elliott Wave analysis.

  • Stochastics
  • RSI
  • Trendlines
  • Fibonacci
  • DeMark

Quantitative measures

Additionally, and if you’ve heard this before it bears repeating: regardless of the analysis technique you choose you, stay focused on just a handful of markets/instruments. I know it’s tempting to run scans and look for the ‘trades of the day’….but that is often a waste of time, at best.  Novice and seasoned traders alike can get into trouble when you try to follow too many markets or look for opportunities outside your normal trading vehicles. 

Using Elliott Wave and going deep on a handful of instruments has helped to grow my trading accounts and my portfolio. I encourage you to follow your interests and develop a personal approach and THEN STICK TO IT.

Never stop learning!

Dave

Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.

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Editors’ Picks

EUR/USD trades around 1.09 amid upbeat German data, thin liquidity

EUR/USD is trading around 1.09 as ongoing SIno-American tensions boost the safe-haven US dollar. The German IFO figures for May beat expectations with 79.5 points in May. Coronavirus figures in Europe are declining.

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