Update and Elliot Wave With Fibonacci....
Well I hope that you were listening to my advice in the blog for weekly outlooks. If you were you should be doing well. The EURO has indeed moved down and the AUD has too in relation to the low risk to high reward trade around the 61.8 fib which once again on the daily chart if you were a die hard elliot wave trader should be the culmination of wave 4 on the daily charts.
I want to show you today how I structured most of my trades in relation to the Elliot Wave sequence (yes, all my own analysis which may differ from others) and key fibs off of the previous day of trading.
The big problem with most traders in using Fibs is they fail to let price action CLOSE on the Candle they are trading and automatically assume on breach of the Fib area that price has moved away from them and they should get out.
You need to remember that price is NOT static. It does not Stop and start on a dime. It can be it is rare. Especially in the manipulated currency markets. Patience is you key. The market makers love these areas because they know that traders get ancy because they use too much leverage and so they run key supports, resistances and Fibs all the time. Temporarily is the key word. The market will return to its over all trend or positions of where the major players enter the market. Most of the bank traders use Fibs to trade short term and long term. So it is a good idea to be on the same wave length as them.
In the below chart you can see that I labeled the corrective waves and used my fib tool to place the fibs on the chart for the day. Simply from the highs and lows of the previous trade day.
With the Elliot Wave there is a pattern here when you see the corrective waves but once again it is subject to interpretation and how many other traders see what you do. Hopefully not too many or it won't work.
I will go into Elliot Wave in a lot more detail later but suffice to say it met certain criteria that I had along with the likely rise in the US Dollar.
Hence price should move to my target area and then below this over the next twelve to twenty four hours. I took profits today at the 61.8 area and the 23.6 area when price action slowed around noon eastern standard time. I also net my USD/CHF run as it mimics the Dollar index under most circumstances.
Why?
It has bounced nicely from the 23.6 Fib on the Daily's and began to move up. Hence the positions. In the change of the trend it should be the completion of Wave 2 down and now we should have a Wave 3 up which is the most powerful wave? We'll see.
You need to remember that Elliot Wave is simply an interpretation of price action. I use it and many others to help me scalp and position trade.
Some I cannot teach you because it is all based on open market price action and market experience. In other words you have to see the set up. That only comes with experience.
Here is the chart traders. See what I did and try to do the same. Elliot Wave is a lot of study and time so be patient. With Elliot Wave no two Guru's usually see the same thing. Same thing with Fibs. Most traders draw them wrong and do not wait which is why they don't work for most.
I want to show you today how I structured most of my trades in relation to the Elliot Wave sequence (yes, all my own analysis which may differ from others) and key fibs off of the previous day of trading.
The big problem with most traders in using Fibs is they fail to let price action CLOSE on the Candle they are trading and automatically assume on breach of the Fib area that price has moved away from them and they should get out.
You need to remember that price is NOT static. It does not Stop and start on a dime. It can be it is rare. Especially in the manipulated currency markets. Patience is you key. The market makers love these areas because they know that traders get ancy because they use too much leverage and so they run key supports, resistances and Fibs all the time. Temporarily is the key word. The market will return to its over all trend or positions of where the major players enter the market. Most of the bank traders use Fibs to trade short term and long term. So it is a good idea to be on the same wave length as them.
In the below chart you can see that I labeled the corrective waves and used my fib tool to place the fibs on the chart for the day. Simply from the highs and lows of the previous trade day.
With the Elliot Wave there is a pattern here when you see the corrective waves but once again it is subject to interpretation and how many other traders see what you do. Hopefully not too many or it won't work.
I will go into Elliot Wave in a lot more detail later but suffice to say it met certain criteria that I had along with the likely rise in the US Dollar.
Hence price should move to my target area and then below this over the next twelve to twenty four hours. I took profits today at the 61.8 area and the 23.6 area when price action slowed around noon eastern standard time. I also net my USD/CHF run as it mimics the Dollar index under most circumstances.
Why?
It has bounced nicely from the 23.6 Fib on the Daily's and began to move up. Hence the positions. In the change of the trend it should be the completion of Wave 2 down and now we should have a Wave 3 up which is the most powerful wave? We'll see.
You need to remember that Elliot Wave is simply an interpretation of price action. I use it and many others to help me scalp and position trade.
Some I cannot teach you because it is all based on open market price action and market experience. In other words you have to see the set up. That only comes with experience.
Here is the chart traders. See what I did and try to do the same. Elliot Wave is a lot of study and time so be patient. With Elliot Wave no two Guru's usually see the same thing. Same thing with Fibs. Most traders draw them wrong and do not wait which is why they don't work for most.
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