Elliott Waves are widely recognized for their ability to map price cycles in financial markets, offering an invaluable structure for understanding price movements. However, despite their effectiveness, traders' most significant challenge is choosing the correct wave count in real-time. Every situation in live markets presents a single valid count, which can be either bullish or bearish, leading to a sense of uncertainty akin to making a random decision.

The challenge of selecting the right wave count

The difficulty in selecting the correct Elliott wave count is understandable. The pressure to make the right decision can be overwhelming during critical market moments. This challenge is a significant barrier for many traders, who may feel their success depends on chance.

The solution: Integrating institutional liquidity

Adding a key factor to the Elliott Wave theory—institutional liquidity, commonly called the "Big Guy—is essential to overcome this challenge. This approach improves accuracy in identifying the correct wave count and provides an objective advantage that reduces subjectivity and discretion in the analysis process.

Case study: Applying the "big guy" perspective to EUR/USD

This article explores a practical example using the EUR/USD pair to illustrate how the "Big Guy’s" perspective can be integrated into Elliott Wave analysis. Through this approach, traders can learn to identify the high probability wave count, enabling them to make more informed and strategic decisions in financial markets.

Combining Elliott Waves with institutional liquidity offers traders a powerful tool to enhance the precision of their market analysis. By reducing uncertainty and increasing objectivity, this approach can significantly transform how you operate in financial markets, leading to more confident and effective decision-making.


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Editors’ Picks

EUR/USD struggles near 1.0550 amid dour mood

EUR/USD struggles near 1.0550 amid dour mood

EUR/USD struggles near 1.0550 in the European morning on Thursday. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU. ECB- and Fedspeak are awaited. 

EUR/USD News
GBP/USD trades around 1.2650, upside potential seems limited

GBP/USD trades around 1.2650, upside potential seems limited

GBP/USD keeps its range near 1.2650 in early European trading on Thursday. The pair's sidetrend could be attributed to the softer US Dollar and a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions and a light economic calendar. Fedspeak eyed. 

GBP/USD News
Japanese Yen reverses Wednesday's losses against USD after BoJ Governor Ueda's comments

Japanese Yen reverses Wednesday's losses against USD after BoJ Governor Ueda's comments

The Japanese Yen adds to its modest intraday gains, dragging the USD/JPY pair to a fresh daily low, around mid-154.00s heading into the European session on Thursday. BoJ Governor Kazuo Ueda did not comment on monetary policy, though left the door open for another interest rate hike as soon as next month. 

USD/JPY News

Editors’ Picks

EUR/USD struggles near 1.0550 amid dour mood

EUR/USD struggles near 1.0550 amid dour mood

EUR/USD struggles near 1.0550 in the European morning on Thursday. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU. ECB- and Fedspeak are awaited. 

EUR/USD News
GBP/USD trades around 1.2650, upside potential seems limited

GBP/USD trades around 1.2650, upside potential seems limited

GBP/USD keeps its range near 1.2650 in early European trading on Thursday. The pair's sidetrend could be attributed to the softer US Dollar and a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions and a light economic calendar. Fedspeak eyed. 

GBP/USD News
Gold price retains its bullish bias near one-week high amid rising geopolitical risks

Gold price retains its bullish bias near one-week high amid rising geopolitical risks

Gold price maintains its bid tone heading into the European session and currently trades around the $2,660 level, or a one-and-half-week high touched earlier this Thursday. This marks the fourth straight day of a positive move and is sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war.

Gold News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu (SHIB) trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

Read more
Why Nvidia’s story is far from over

Why Nvidia’s story is far from over

Nvidia delivers another earnings beat: Nvidia exceeded expectations with $35.08 billion in revenue, a 94% year-over-year increase, driven by strong performance in its data center business, which more than doubled to $30.8 billion.

Read more

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