Euro Amazing Learning Experience
The document analyzes hourly charts of the EUR-USD currency pair and identifies four regions showing shifts in market momentum. Region A shows bears gaining control as prices form lower highs and lows. Region B sees an initial attempt by buyers to push prices higher but the trend fails to accelerate. Region C shows bears regaining control with an acceleration in the downward trend. Region D identifies signs of the trend changing as buyers push prices higher with acceleration, forming higher highs and lows, signaling it is time to become buyers of dips in the market. The document advocates focusing less on labeling waves and more on understanding market structures and trends using Elliot wave analysis combined with Dow theory and analysis of trend acceleration.
Euro Amazing Learning Experience
- 1. EUR-USD: Hourly chart: An amazing learning experience... Region A: Free fall gives way to an overlapping move.... First warning shot that buyers are getting back but still LOWER HIGHS & LOWER LOWS signify that bears have an upper hand... Region B: First attempt from buyers to gain ground from sellers, minor waves of higher high and higher low AND INFACT MARGINALLY CROSSED THE LAST MAJOR SWING HIGH OF 1.4439(depicted by the red horizontal line)... but the trend did not show acceleration.. As a result bears came back... Region C: Bears came back and look at the acceleration of trend downwards.... Region D: Market stopped falling but at that moment the trend was still down and there was no indication of trend change........ However, first warning short came when the rally went inside last low, overlapping wave.... Then the most important warning came when trend acceleration happened, depicted by the green arrows.. Re- member, last time when the bulls made an attempt to get back into the game (Region B) they failed to accelerate the trend, but this time acceleration happened............ After this indication I stopped being a seller of rallies...Final confirmation, when the market crossed the LAST MAJOR SWING HIGH @ 1.4345...So now you have accel- eration and formation of higher high and higher low.... Time to become buyers of dip... Elliot wave analysis is an amazing treatise to understand market structures but I believe too much of attention is paid to MARKING WAVE LABELS and not on understanding the market structures.. especially the finer aspect of Dow Theory and the aspect of TIME-DISTANCE relationship is ignored... This was an effort to show an alternative use of Wave theory (along with Dow theory and SPEED of market) for traders.... Anindya Banerjee. anindya1979@gmail.com