Finding the end of an Elliott Wave is no easy task. Those who attempt it often end up frustrated because, before pinpointing the actual end, they face several consecutive losses that exhaust them mentally, leaving their losses to outweigh their gains. The good news is that we can improve the precision of identifying the end of a cycle by analyzing price action from different perspectives, increasing the probability of success. In this post, we’ll show you how it’s done and the steps to find the end of a wave with less effort and greater confidence.
In the SPX500, we were looking for the end of Wave Two to follow the bullish movement. By incorporating momentum analysis through the MACD and volume and price behavior, we can pinpoint where the price marks the wave’s end. At that moment, we switch to a lower time frame to refine the entry point, reduce the stop-loss distance, and multiply the trade’s outcome by improving the risk-reward ratio.
You might wonder if this methodology can be applied to other markets, and the answer is a resounding YES. We use tick volume to approximate actual volume in decentralized markets like forex, cryptos, etc. This information is sufficient to validate trades and confirm operations.
Wishing you a great start to the week and much success in all your trades!
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Editors’ Picks
AUD/USD struggles below 0.6400; focus remains on FOMC meeting
AUD/USD stays defensive below 0.6400 early Tuesday, lacking bullish conviction. China's economic woes, US-China trade war fears and the RBA's dovish shift continue to act as a headwind for the Aussie. The pair fails to draw support from a weaker US Dollar ahead of Retail Sales data.
USD/JPY: Volatile within range near 154.00 ahead of US Retail Sales data
USD/JPY is moving back and forth in a range at around 154.00 in the Asian session on Tuesday. The pair feels the weight of the Japanese commnetary and a softer risk tone. Howevrer, a renewed US Dollar uptick keeps the dowside checked ahead of the US November Retail Sales report.
Gold struggle with key $2,650 level extends ahead of US Retail Sales data
Gold price holds the previous rebound above $2,650 early Tuesday as buyers remain in control amid sustained weakness in the US Dollar and sluggish US Treasury bond yields. The focus now remains on the US Retail Sales data as the US Federal Reserve begins its two-day monetary policy meeting later on Tuesday.
Ripple's XRP could rally to $4.75 as RLUSD set to officially launch on Tuesday
Ripple confirmed in a press release on Monday that its RLUSD stablecoin will officially launch on Tuesday across exchanges, including MoonPay, Uphold, CoinMENA, Bitso and ArchaxEx.
Five fundamentals for the week: Fed dominates the last full and busy trading week of the year Premium
Christmas is coming – but there's a high likelihood of wild price action before the holiday season begins. Central banks take center stage, and there is enough data to keep traders busy outside these critical decisions.
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