Wednesday, July 27, 2016

Nzdcad: A prototype of EWT

Elliott wave theory has proven to us again that it still remains the single most effective technical forecasting tool to track price movement of any financial market. It tends to get it right by postulating that markets are driven more by the mass psychology of the participants than any other factor. This displayed mass psychology is repetitive and cast into patterns which can be seen across all time frames.

Since 1938, the theory still holds effective. Yes!, very effective.

The chart below was the one used in 13th July 2016 when we forecast that bearish move is imminent.

What would cause this bearish move was unknown to us but mass psychology showed it a pattern. After a while price fell and retraced upside as shown in the chart below.

After the retracement upside, price may be on a new way downside, probably to 0.89 before any chance that the bullish longer term movement will resume.

All these might be made possible by news events but we believe that prices are driven by men who respond to events. These men are driven by their emotion also called PSYCHOLOGY . This PSYCHOLOGY appear repeatedly in PATTERNS.

Join our trading room as we look for these patterns across all time frames and take proper entries with good R/R that guarantee long term success. Join Us

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