No Result
View All Result
Markets
EUR/USD GBP/USD USD/JPY AUD/USD NZD/USD XAU/USD
Central Banks
FED ECB BoE BoC BoJ SNB RBA RBNZ
Brokers
Wire Transfer Visa/Mastercard Paypal Fasapay Skrill Bitcoin
FCA Cysec CFTC NFA FSA
Forex Guide
Beginners Basics Technicals Fundamentals
Education
Forex Articles Forex School Forex Terms
Forex Strategies
5 Minutes 15 Minutes 30 Minutes 1 Hours 4 Hours Daily
Resources
Indicators Forex Ebooks MT4 MT5
Trading Tools
Live Charts Economic Calendar Fibonacci Calc Pivot Points
Mira FX
  • Markets
  • Education
  • Central Banks
  • Resources
    • Ebooks
    • Indicators
      • MT4 Indicators
      • MT5 Indicators
  • Brokers
    • Deposit Bonuses
    • No-Deposit
    • Demo Contest
    • Live Contest
    • Brokers News
  • Tools
  • Login
  • Deposit Bonuses
  • No-Deposit Bonuses
  • Demo Contest
  • Live Contest
  • Brokers News
  • Brokers
Mira FX
  • Markets
  • Education
  • Central Banks
  • Resources
    • Ebooks
    • Indicators
      • MT4 Indicators
      • MT5 Indicators
  • Brokers
    • Deposit Bonuses
    • No-Deposit
    • Demo Contest
    • Live Contest
    • Brokers News
  • Tools
Mira FX
  • Markets
  • Education
  • Central Banks
  • Resources
  • Brokers
  • Tools
  Latest
Make Money in Forex by Avoiding These Psychological Risks May 24, 2022
Next
Prev

Elliott Wave Forex Chart Pattern

User by User
January 26, 2022
in Article
Reading Time: 2 mins read
ShareTweetShareSendShareSend

The Elliott Wave up trend in forex trading consists of five waves or swings. Waves 1, 3 and 5 are considered impulse (trend) and waves 2 and 4 are corrective(counter trend) waves.  Wave 1 peaks, with resistance at the top of wave 1, and wave 2 corrects wave 1.

Elliott Wave Forex Chart Pattern

Wave 2 can be expected to retrace anywhere from 38.2 to 61.8% of wave 1, and sometimes back to the origin point. If wave 2 retraces all of wave 1, a double bottom is formed.
As the peak of wave 1 is surpassed, resistance may give way, and the price would then accelerate. This is typical after resistance level breakout. Wave 3 is often the longest of the waves.

Followers of the Elliott Wave often project that wave 3 will complete a new higher level for resistance, which would then form a Fibonacci expansion of wave 1, such as 138.2% to 261.8% of wave 1.

Elliott Wave Forex Chart Pattern

The peak of wave 3 establishes a new level of resistance, and wave 4 corrects wave 3. Wave 4 establishes a new support level. Wave 4 is expected to unfold in some manner different from the characteristic of wave 2.

For example, if wave 2 was deep, retracing 61.8% of wave 1, then wave 4 may be shallow and only retrace 38.2% of wave 3. Wave 4 should be expected to retrace back to the support level formed when wave 3 completed its internal wave 4 level.

Wave 4 is complete and wave 5 breaks through the resistance level (wave 3’s peak). The peak of wave 5 will form a new resistance level. Elliott Wave technicians will project wave 5 peak to be a ratio related to the height of wave 3, or from the height of the beginning of wave 1 to the peak of wave 3.

Tags: Technical
ⓘ Some contents provide links to third-party news and current events as a convenience to you. We have not reviewed and don't endorse the contents of these sites. Please always do your own research. Mira FX does not endorse any companies, products or services which are represented on this article. Mira FX is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite.

Related Posts

How to make money with ETD CFDs

How to make money with ETD CFDs

Grand Capital - November 27 | Beginner
MacFibo Trading Strategy

MacFibo Trading Strategy

FBS | Fibonacci - H1
forex articles

Connection between the Equity Market and the Foreign Currency Exchange Market

David G - Feb 24 | Basic
Bullish Hammer Reversal Strategy

Bullish Hammer Reversal Strategy

David G | Candlestick - M5, M15, H1
Thai Baht Foreign Currency in The Foreign Exchange Market

Thai Baht Foreign Currency in The Foreign Exchange Market

Mira Team - August 7 | Fundamentals
Technical Analysis and Forex Market Trading

Technical Analysis and Forex Market Trading

JOSHUA - Feb 6 | TECHNICAL
Advertisement

Latest

Forex Psychological Risks

Make Money in Forex by Avoiding These Psychological Risks

JOANA N - MAY 24 | Psychology

Differences between the Foreign Exchange Market and Stock Market

DAVID G - May 23 | BASIC

Why Leverage is Important for Forex Traders?

Joana N - May 23 | Basic

How To Install Metatrader 5 Custom Indicators

MIRA TEAM - May 9 | Basic

Gross Domestic Product, First Quarter 2022

APR 28, 2022 | USD

The pound reacts to rising inflation like EM currency

Apr 13, 2022 | GBP/USD
Advertisement
  • About
  • Advertising
  • Disclaimer
  • Contact
  • Privacy Policy
  • Terms & Conditions
Risk Warning: All information on this website, including any opinions, articles, charts, prices, news, data, Buy/Sell signals, reviews, research and analysis is provided as general market commentary and does not constitute any investment advice. Mira FX is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite. Do not invest more money than you can afford to lose. Note that the high level of leverage in forex trading may work against you as well as for you. Please seek advice of an independent financial advisor if you are not fully aware about the risks associated with foreign exchange trading. Forex trading on margin involves considerable exposure to high risk, and may not be suitable for all investors. Mira FX does not endorse any companies, products or services which are represented on Mira-FX.com The information on this website is subject to change without notice.
No Result
View All Result
  • About
  • Advertising
  • Central Banks
  • Contact
  • Disclaimer
  • Forex Brokers
    • Regulator
  • Index
    • Daily Forex Strategy
    • Forex Ebooks | Language: English
    • H1 Forex Strategy
    • H4 Forex Strategy
    • M15 Forex Strategy
    • M30 Forex Strategy
    • M5 Forex Strategy
  • Markets
    • EUR/JPY
  • Mira FX
  • Privacy Policy
  • Terms & Conditions
  • Tools
    • Economic Calendar
    • Fibonacci Retracement Calculator
    • Live Charts
    • Pivot Point Calculator

© 2022 Mira FX | Copying of materials is allowed only with the presence of an active link to a source page.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In