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An Introduction To Forex And Elliot Wave Degrees
By Adrian Pablo, Thu Dec 8th
As a Forex trader you willalways be attempting to make more profits than losses from thefluctuations of exchange rates between currencies in the forexmarket; in short, this is what is called forex trading. And if you want to become a profitable forex trader you willneed a good technique to forecast the market behavior with time;i.e., how the currencies value will fluctuate in the next periodof time you are interested on trading. One of the best techniques you can use to forecast the Forexmarkets is by using the Elliot Wave Theory. (Article continued below)
Ralph Nelson Elliot also observed that the market has strongtrends that seem to follow a repetitive pattern in all thedifferent time frames; and after analyzing a great number ofcharts he discovered in the late 1920's that the markets move
ina repetitive manner that is far away from being a totallychaotic behavior. And this was not all Elliot discovered; he also realized thatthis patterns had a fractal nature. This means that the patternsnot only repeated with time but that in a given period of timethe characteristic wave pattern would repeat at different scales(days, hours, minutes). This is the most basic concept in Elliot's theory; i.e., thelargest wave structures are composed of smaller sub waves, andthese in turn are composed of even smaller sub waves, and inprinciple this goes on to infinity. Elliot gave a name to these wave structures calling them "wavedegrees", depending on the time frame you are looking at. Therange of these degrees goes from centuries to hours. Elliot distinguished Nine Wave Degrees in his studies, they areknown as: -Grand Supercycle -Supercycle -Cycle -Primary -Intermediate-Minor -Minute -Minuette -Sub Minute In principle these degrees can go to infinity and they clearlyshow you can choose the time frame you like better, according toyour trading objectives, and the patterns you will see will bethe same in any of these time frames. About the author:Adrian Pablo is a Forex freelance writer with articles publishedin a number of places. Get a free report on Fibonacci Tradingand learn more about the world of trading , visit: => http://www.1-forex.com | 
