The Elliott Wave Principle is a specific method of technical analysis, discovered by Ralph Nelson Elliott in the 1930s. Its forecasting value comes from the fact that price movements form repetitive patterns – waves. Those waves are the result of human mass psychology. In other words, mass psychology is market psychology, so there is no need of news, fundamental factors or expert’s opinions, if one knows the pattern and what to expect after it.

Trading Losses and How to Handle Them

Trading will always bring fortune and misfortune to those in the market. Just like in life, the inevitable ups and downs are a natural part of this particular human activity. But there are ways to make the most of losing and turning it around to your advantage. Here are five tips on what to do…

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Money Management in Trading

Money management doesn’t seem to be the first thing on people’s mind when they start trading. It doesn’t look as sexy and exciting as doubling your money, or going on a winning streak of trades. But as more experienced traders know – it’s a crucial part of making profits and coming out on top. How…

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4 Tips to Invest Safely in Bitcoin, Ethereum and Ripple

Invest safely in bitcoin, ethereum, ripple

Scams, hacking and cryptocurrency exchanges going bankrupt have plagued the cryptocurrency community and have spooked investors in 2017. The picture for 2018 probably won’t change too much. Many traders using our services at ewminteractive.com have been interested in trading bitcoin, ethereum, ripple and other altcoins so we decided to find out how they can protect…

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Bitcoin is Not a Bubble, Because… Oh, Really?

bitcoin bubble or not

Bitcoin is everywhere you look these days. From bank officials, to hedge fund managers, to IT specialists, people with different professions, level of education, interests and investing experience are talking about Bitcoin. And who can blame them – the virtual currency is conquering milestone after milestone, climbing from $8000 to over $11 000 in just…

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How to Recognize a Leading Diagonal Pattern

leading diagonal elliott wave pattern

One of the first Elliott Wave patterns we devoted an entire lesson to was the ending diagonal. It is relatively easy to recognize and very important, because it is usually followed by a sudden trend reversal. But if there is an ending diagonal, there must be a leading diagonal, as well, right? Yes, there is…

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How to Choose a Forex Broker

Here are the five main factors that you need to consider when choosing a Forex broker! 1. Pick a regulated and secure Forex broker Trust is the most important currency of all and that’s even more true when it comes to a giving your hard earned money to someone you don’t know. How can you…

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Divergence and How to Use It in Trading

bitcoin rsi divergence

If you have been following us regularly, you must have noticed how often we use the word “divergence” in our analyses, usually when expecting a trend reversal. A divergence occurs when the price reaches a new extreme, while the line of the indicator, which measures the force behind the price move, does not. It means that…

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Cigna: Fundamental Analysis Simply Not Enough

Cigna Corporation has been one of the wonder stocks of the last 8 years. Shares of the health services organization gained from as low as 8 dollars a share in November, 2008, to as high as 170.68 in June, 2015. We are not even going to calculate those gains in percentage points. “A lot” is…

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Elliott Wave: The Devil Is In the Details

Probably the strongest argument critics use against the Elliott Wave Principle is that traders could often come up with two or more sometimes equally probable scenarios for the market’s future direction. That is true. In an environment filled with uncertainty, it is not always easy to pick just one single count. In fact, we suggest you…

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The Mischievous Running Flat Correction

In “Expanding Flat and How to Avoid Its Traps” we examined probably the most common type of flat correction the markets could offer. It is easy to spot and relatively easy to trade. However, if you are constantly expecting the expanding variety, you are not going to be prepared for its exotic, but deceptive cousin…

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What Do Oil and Tulips Have in Common?

If we need to provide a definition for a “market bubble”, we would describe it as a part of the economic cycle, which characterizes with a rapid and often irrational expansion of the market, accompanied by a an unprecedented surge in prices, driven mainly by optimism and euphoria about the future, followed by an unexpected sharp contraction…

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Gold Shows Why Discipline Is Crucial

On December 15th, 2015, we published an article, called “Gold Ready for a Post-FED Explosion?”. The FED was about to raise interest rates on the very next day, December 16th, so it was clear that an increase in volatility was going to occur. So, we applied the Elliott Wave Principle in an attempt to predict…

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Support And Resistance

If you are new to technical analysis, you may have already heard about the “levels of support and resistance”, since they are among the most important things. But what do the terms “support” and “resistance” really mean? Well, technical analysis is hard to understand without a chart, so let’s see one. A support level is…

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Why Waiting For Confirmation? A Tale Of Greed

Every trader with enough experience in the market usually comes to the conclusion, that he needs a system of rules to go by. Rules, which should not let him abandon his discipline and get emotional while trading. Every trading methodology has one such system, which tells you when to go in and out of the market.…

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What Is Fundamentally Wrong With Fundamentals?

Can you guess which country has the best-performing global stock market so far in 2015? Germany? Japan? USA? Nope. The Business Insider came up with the “surprising” answer yesterday. It is Russia. Yes, Russia – a country in a state of war, whose currency has been suffering terribly against the US dollar and the euro. If…

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