China ETF. A bullish setup.

On the 1-hour chart of the China ETF we can see a very clear impulsive five to the upside with an ending diagonal in the fifth wave. Normally, after the end of this rally, a correction developed. It seems to be in the form of a double zig-zag labeled w-x-y. Ideally, after the 5-3 Elliott Wave cycle, long…

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Crude Oil still corrective

In our previous analysis on crude oil we stated that prices could go higher, if the market decides to make wave (2)/B more complicated. On the chart below you can see that this is exactly what happened. What we have now, looks like a double zig-zag labeled w-x-y. Double zig-zags are counter-trend movements, after which the…

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Where the protective stop should be?

It is not difficult to get emotional about trading. And as many of you probably know, emotions are rarely helpful, when you have to make financial decisions. So, what can we do as traders, in order to protect ourselves from our own human imperfections? And the answer is one – to put our protective stop…

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Elliott Wave Principle and How It Works

The Elliott Wave principle is a form of technical analysis, which is used to analyze market trends, locate extremes in investors’ psychology and forecast future market trends. Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable fractal patterns, called waves. The theory can be validated by using the Fibonacci sequence and…

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GBPUSD and the Fibonacci magic

GBPUSD formed a top at 1.6822 on February 17th 2014 and has been in corrective mode for more than a month, bottoming at 1.6460 on March 24th. If we look at the 4-hour chart of GBPUSD, we could see that the price action has formed a classical 5-3 Elliott Wave pattern. What is more interesting…

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Crude Oil still bearish

Crude oil fell in five waves from 105.20 to 97 dollars. This whole decline happened, despite the Russia-Ukraine conflict and the expectations that it will push prices higher. It happened, because fundamental factors, news and events lag the market and have no impact on it in the long term. And just when everyone accepted that…

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Be careful with USD/JPY

USD/JPY rose significantly yesterday after the FOMC reports and during Janet Yellen’s speech. Does that post-news strength provide enough of a reason to start buying? Considering that our previous analysis is still valid, we think you ought to be careful with USD/JPY. Let’s see how it has been developing by now. To make that count more…

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Gold is going south

Five waves down, three waves up. In terms of the Wave Principle, gold is going south. Entry between 1385-1387, invalidation level at 1392. First target 1373.

EUR/AUD buying chance

EUR/AUD buying chance could be in place. A five-wave impulse with an extended fifth wave, followed by a zig-zag, that retraces the entire extension at the 61.8 Fibonacci level. From an Elliott Wave point of view, we have plenty of reasons to go long here. Invalidation level at 1.5150, first target above 1,5540.

USDCAD could go higher

An impulsive advance in combination with a flat correction, suggests that USDCAD could go higher. If we add the 38.2% Fibonacci level to the analysis, we will have one more reason to expect a move to the upside.

USDJPY, still bearish in the long term

Not many changes since our last post on USDJPY, except the better entry, which we now have for a long-term position. On the 4-hour chart, our count starts from the end of that truncated fifth wave. We have a complete 5-3 cycle. According to the Elliott Wave Principle, we are waiting for another drop-off. Considering our…

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EURUSD long-term perspective

EURUSD has been very stubborn in its attempt to hit the 61.8% Fibonacci level twice. It looks like this effort is going to be successful, because wave “c” of Y of (X) needs to be completed. In other words, figures around 1.39-1.40 should be reached, maybe during the first couple of weeks in 2014. After…

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EUR GBP Cross Rate

Both EUR and GBP look weak against the US dollar, but which one of them is weaker, compared to the other? There are two wave counts on the charts below, suggesting that the EUR should be stronger than the GBP in the long term.        

EURUSD: bears again

Despite all new highs, which EURUSD recently made, this pair remains bearish. Expect a reversal to the downside from that 61.8% Fibonacci level.