Author Login | Popular Articles | RSS Feeds | Sitemap

Home | Finance | Currency-trading


Chart Patterns Verified By The Elliott Wave Principle

By: Bret Freak

Still wondering whether chart patterns are a valid form of analysis to trade the forex market? Well, just recently I have realized that both Elliott Wave, and. Hurst Envelope analysis support the validity of chart patterns, and even go as far to explaining why they occur! What’s interesting is the fact that both Elliott Wave & Hurst Envelope analysis are two very different analysis techniques, yet both explain exactly why these patterns continue to repeat time and time again.

Here is a quote from the Elliott Wave Principle on chart patterns:

“The Elliott Wave Principle not only supports the validity of chart analysis, but it can help the technician decide which formations are most likely of real significance” It goes onto explaining how chart patterns relate to Elliott Wave analysis and how you can use it in your trading.

And here is a quote from James Hurst’s book entitled: “Profit Magic of Stock Transaction Timing”

“If the “X” motivation concept is valid, it must be able to explain the existence and, reoccurrences of common chart patterns and, why they impart information to the investor.” And:

“The second purpose of the chapter is to show you how the price motion model can be used to resolve chart patterns. Such patterns can be used to determine which way and when price motion will go at pattern termination.”

Although the above may sound very confusing to those who haven’t read Hurst’s book, it’s still an interesting fact that the validity of chart patterns have been confirmed and supported by two very different market timing techniques. Now this brings us to another question: Can both Elliott Wave and Hurst Envelope analysis be somehow combined together to take chart analysis to a new level? Perhaps.

It’s not however my aim here to go into any details on how this may be achieved, but rather, allow those interested to follow up on this interesting idea themselves, and give those who are unsure if chart patterns are really a valid form of trading analysis, some confidence in their value in trading the forex market.

A Parting Comment:

Before you go out and buy a copy of Hurst’s book “Profit Magic of Stock Transaction Timing” I would like to warn you in advance that the content presented in this book can be at times hard to understand. And on top of this, the market timing technique Hurst presents in that book can be very time consuming. Since it involves manually drawing in “Envelopes” around price action. It is still however an interesting read, especially for those who are interested in how Hurst’s timing technique can be used to add accuracy to chart pattern recognition.

I believe the Majority of traders would be content on using the Elliott Wave Principle to further analyze chart patterns. Since it is more widely known than Hurst’s Envelope technique, and has more extensive information and education available on it than Hurst’s technique.

Conclusion

By understanding the Elliott Wave Principle, and Hurst Envelope analysis, you are able to take chart pattern recognition to a new level of accuracy, and therefore profitability. So, if you are the type of person who is interested in trading chart patterns more successfully you may be interested in doing some further research into Hurst Envelope analysis, and the Elliott Wave Principle.

Article Source: http://www.articlesnatch.com

About the Author:
More information and education on the Elliott Wave Principle and other technical analysis techniques can be found at trading-forex-online.com. A forex trading system resource web site.

Tags: , , , , ,
| Print | Ezine Ready | |

Recent Currency-Trading Articles

  • Currency Trading Systems - This Ones Totally Free Has Made Millions and is Enclosed! By: K Price - If you want a free currency trading system, that is extremely simple to understand, has a track record stretching back over 25 years and works, you will find it and the rules of operation enclosed... There are of course lots of currency trading systems sold online - but most in real life disappoint users, because the track record presented is a back tested simulation and most are curve fitted.
  • How to Make Money Fast - A 4 Point Proven Plan Anyone Can Apply By: K Price - If you are wondering how to make money fast then the enclosed plan will work for anyone and it doesn't matter if you don't have much to start and no college education is required... If you want to make money fast, then you probably don't have much to start with and it would be a great help, if you can invest more than you have so you need the following advantage. 1. Leverage This means that any money you put down you can invest more than you have.
  • Forex Market Structure By: Clint Jhonson - At the very top of the forex market are transactions which are collectively called Interbank transactions. The “Interbank” is not, as some people may believe, an exchange. Rather, it is a collection or compilation of agreements between and among the major money center banks in the world. An example may make it easier to understand this thing we’re calling the “Interbank” market. In most larger offices or business, perhaps even in your own home, there may be several computers which are inter-connected by means of a simple network cable.
  • Forex Trading - What Makes You Think You Can Win When 95% of Traders Fail? By: K Price - Forex trading is not a walk in the park, it's a business that requires special skills to win and most traders simply cannot acquire them however if you can get the right Forex education, you could be on the road to financial freedom... Let's look at what you need to do to win.
  • Forex Trading Basics - 10 Facts About Forex Every Novice Trader Needs to Know to Win By: K Price - If you are thinking about entering the exciting world of Forex trading, you need to know some Forex trading basics and the ones enclosed are essential for any novice trader, be aware of them or lose... Here are your 10 facts and there in no order of importance - there all important! 1.
  • Successful Forex Trading System - This Method is Simple and Makes Huge Profits! By: samuel L Berkovits - If you want a successful Forex Trading system then you should use a breakout strategy, as its simple to understand, easy to apply and makes huge gains. Let's look at how to incorporate it in your Forex trading strategy for huge gains... You don't need a forex robot to do this you can build a system yourself and here we will show you how. What are Breakouts? Breakouts are when prices break to new highs or lows on a Forex chart.
  • Best Forex Trading System - A Simple Free One the Top Traders Use That's Made Millions! By: samuel L Berkovits - The Forex trading system we are going to look at here has made countless millions for traders over the last 25 years and even better it's free. All you need to know about how and why this system works is enclosed... Before we start this automated Forex trading system has a huge advantage over most sold online - its made real profits in real time trading. Most of the Forex robot and expert advisor software sold hasn't.
  • Manager of world economics By: Dollar Writer - First dollars developed form German currency taller which was used till 1873. Some time later dollar let German Mark to be appeared. Afterwards Spanish coins were called habitually dollar. They say that the appearance of dollar sign $ took its origin directly from there. A long phrase piece of eight was denoted as crossed eight and finally it became the official mark of dollar. As for the bank-notes appearance, we can say that dollars history counts a lot of changes.
  • Forex Signals Services: Path to Profits or Trail to Tears? By: Clint Jhonson - Retail forex trading is the most risky form of investing, yet every day hundreds, even thousands of people turn to forex as a way to make a quick buck. The idea of taking the time to learn the market and trade a demo account for months before risking real money can sound boring and nonproductive, so many seek out a way to start making money now, fast and easy.
  • Forex forum and forex chat sites: the place to go for all your forex information needs By: Alice Campbell - Since the proliferation of the Internet, online forums and chat sites which specialize in different topics have been the first stop for those who are looking for specific answers to their questions. For example, if you are new to the foreign exchange or forex industry, the best place to ask your market-related questions as a novice are forex forums and forex chat sites.

Comments

Search Ebay

Still can't find what you are looking for? Search for it!


Add to Google
ArticleSnatch Authors:
Member Login Sign Up Submit Articles FAQ Submission Guidelines Top Authors
For Publishers:
Most Popular Articles Ezine Notifications Article RSS Feeds Terms of Service
For Everyone:
Blog About Us Link to Us Contact Us New Stuff Link Directory Privacy Policy Sitemap Resources
Our Sites:
Free Magazines Book Your Hotel Stay Free MySpace Tools Massive Video Collection Broadband Speed Test
Click here to submit your free, permanent ads to TheFreeAdForum.com!

Submit Your link to the Open Link Directory Project

Copyright 2005-2008 MJE Sales, LLC. All Rights Reserved.
Proud member of the ArticleCkr Search Network Search Network!
ArticleSnatch.com is free for both publishers and authors to use and is supported entirely from advertising revenue.
Use of our service is protected by our Privacy Policy and Terms of Service.