The Elliott Waves resemble the waves of the sea, after each wave that enters the beach, is followed by a wave of greater or lesser strength, leaving it captured in the sand that has managed to enter the water on the mainland. Charles Dow, the father of technical analysis, creator of the DOW JONES stock index and the Wall Street Journal, noticed this situation after a leisurely visit to the beach, after spending several minutes in front of the sea enjoying the relaxing waves,
his mind made Click and related the movements of the sea with the financial markets. Surely you will look for this relationship on your next visit to the beach, and you will see the marks that leave the waves in the sand like the EURO chart or any pair in the FOREX market.
Decision-making in trading is a process that must go hand in hand with the analysis of markets, there is nothing better than studying the graphs to achieve profitable investments, the technical tools allow to know levels of support and resistance, determine Price direction scenarios and make input and output decisions. The independent investor can create his trading plan, composed of a list of technical circumstances, that when these are fulfilled creates an input signal and the same plan establishes the level to be used to curb the losses, in the case of an operation that takes The opposite direction to the expected one.
The Elliott Wave tool is a way of analyzing the graphs to predict the future movements of the price, it is based on studying the waves of the past, being able to estimate the future with high probability, due to the fractal principle of the market, that is to say cycles that are repeated in Time and it is possible to get ahead when applied and interpreted correctly.