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Thread: How Do I Know The Beginning Of A Major Wave,(wave 1)

  1. #1
    olajide
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    Default How Do I Know The Beginning Of A Major Wave,(wave 1)

    I Will Like Someone To Put Me Through On How To Identify The Major Wave (wave 1). And Also How Do I Know When A Cycle Is Completed. Thanks.

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    actually this part is what confuses me too... waves are part of big waves and those big waves are part of even bigger waves, it depends on which trend you are looking to trade.

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    I suppose the clearest moment to detect the first wave is when market is in a range for some time and then there is a strong move...
    Another situation would be when there is a trend reversal, first big move in the opposite direction is the first wave...

    Hope it helped...

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    Hello olajide

    Found this on the net, if it help you a bit ?

    Wave 1 (Impulsive): Minor Upwave In Major Bull Move In Wave 1, prices rise as a relatively small number of market participants buy a currency pair for either fundamental or technical reasons, pushing prices higher.

    Wave 2 (Corrective): Minor Downwave In Major Bear Move - After a significant run-up, investors may get fundamental or technical signals indicating that the currency is overbought. At such time, Wave 2 develops when original buyers decide to take profits while newcomers initiate short positions. Price action reverses, but generally does not retrace beyond its initial low that attracted buyers at Wave 1.

    Wave 3 (Impulsive): Minor Upwave In Major Bull Move - Often the longest wave of the five, Wave 3 represents a sustained rally, as a larger number of investors use the Wave 2 dip as a buying opportunity. With a broader range of buyers, the security enjoys a stronger push higher, with prices extending beyond the top formed at Wave 1.

    Wave 4 (Corrective): Minor Downwave In Major Bear Move - By Wave 4, buyers begin to become exhausted and again take profits in reaction to overbought signals. Generally, there is still a fair amount of buyers, so the retracement here is relatively shallow.

    Wave 5 (Impulsive): Minor Upwave In Major Bull Move - Wave 5 represents the final move up in the sequence. At this point, buyers as a whole are motivated more by greed than any fundamental justifications to buy, and bid prices higher irrationally. Prices make a high for the move before a correction or reversal ensues. The high in Wave 5 often coincides with a divergence in the relative strength index (RSI).

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    Market Maker ilearn2t's Avatar
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    Spotted this on me 15 minute time chart earlier, I've added the numbers for you.

    The way I read it. If the currency pair move up for (1) and then fall by around half (2) then up again (3) drops a bit (4) before going up again (5) that's the time to leave.

    If this is the case your looking to join at stage (2) let it rise drop a bit rise again and the first signs of turning downward get out.

    Please don't quote me it's just the way I read it.

    Don't worry about the lines going across the image that's my own orders.

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    small waves are part of a big wave so I get problem to understand the wave.

  7. #7
    forexit20
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    i know the wave is important thing

    but i want clearly explain about it because iam a primary trader ...

    thanks

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    Quote Originally Posted by forexit20 View Post
    i know the wave is important thing

    but i want clearly explain about it because iam a primary trader ...

    thanks
    you would get all details in elliot wave community just google it as elliot wave community and u would see all the details u required there

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    Quote Originally Posted by olajide View Post
    I Will Like Someone To Put Me Through On How To Identify The Major Wave (wave 1). And Also How Do I Know When A Cycle Is Completed. Thanks.
    when working on large time frames..at least weekly..i think u should find a fandamental reson for a begining of a new wave or end of an economic cycle

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    Wave 1 (Impulsive): Minor Upwave In Major Bull Move – In Wave 1, prices rise as a relatively small number of market participants buy a currency pair for either fundamental or technical reasons, pushing prices higher.

    this is right also notice that the price action >>if you are using candlestick chart you will see shooting star when it end

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    Quote Originally Posted by ilearn2t View Post
    Hello olajide

    Found this on the net, if it help you a bit ?

    Wave 1 (Impulsive): Minor Upwave In Major Bull Move In Wave 1, prices rise as a relatively small number of market participants buy a currency pair for either fundamental or technical reasons, pushing prices higher.

    Wave 2 (Corrective): Minor Downwave In Major Bear Move - After a significant run-up, investors may get fundamental or technical signals indicating that the currency is overbought. At such time, Wave 2 develops when original buyers decide to take profits while newcomers initiate short positions. Price action reverses, but generally does not retrace beyond its initial low that attracted buyers at Wave 1.

    Wave 3 (Impulsive): Minor Upwave In Major Bull Move - Often the longest wave of the five, Wave 3 represents a sustained rally, as a larger number of investors use the Wave 2 dip as a buying opportunity. With a broader range of buyers, the security enjoys a stronger push higher, with prices extending beyond the top formed at Wave 1.

    Wave 4 (Corrective): Minor Downwave In Major Bear Move - By Wave 4, buyers begin to become exhausted and again take profits in reaction to overbought signals. Generally, there is still a fair amount of buyers, so the retracement here is relatively shallow.

    Wave 5 (Impulsive): Minor Upwave In Major Bull Move - Wave 5 represents the final move up in the sequence. At this point, buyers as a whole are motivated more by greed than any fundamental justifications to buy, and bid prices higher irrationally. Prices make a high for the move before a correction or reversal ensues. The high in Wave 5 often coincides with a divergence in the relative strength index (RSI).
    thank you alot

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