Weakness in the Market--A Sharp Contrast to Friday 8/27/10
Written by Nate
After Bernanke's speech Friday, the market rallied sharply to close more than 25 points off the session's low. The tenor of the market was much different today however.
The tone became decidedly bearish particularity after 1056 was broken to the downside. As the chart shows, support near that level became resistance as prices failed to break higher on two occasions. The sell-off then accelerated to the downside.
Add a commentBefore Entering a Trade
Written by Nate
Suppose you see a high probability trading opportunity in the market. You think to yourself, "I've made money-a lot of money-almost every time I've seen this". Remembering all the previous successes you have had, you see the potential outcome as a high probability. That sounds great, but before entering the trade, it is important to ask yourself a few key questions:
Add a commentEWT Too Theoretical to Profit From?
Written by Nate
When used properly, Elliott Wave Theory is an excellent tool for the serious trader. It is the only principle that can actually predict the future moves of stock prices.
We always use technical indicators in conjunction with wave structure when making a decision about market strength and weakness as well as future market direction. This practice adds considerable depth to our views. Think of it as psychology driving stock prices with technical indicators being the shadow of the collective decision of investors and traders.
Add a commentTrading Within A Fractal: A Question of Scale
Written by Nate
As Ralph Nelson Elliott showed, the stock market is actually a fractal that can be exploited to deliver profits. What he did not go into great detail about was the style required to be a successful trader. Can day-traders or scalpers make money using Elliott Wave Theory? What about swing traders? Must you be an investor, holding your position for years to make money in the stock market?
Add a commentElliott Wave Degrees
Written by Victor
Elliott Wave Theory proposes that waves come in several "degrees" and are themselves fractals of larger waves. The basic structure of motive and corrective waves applies to all waves. Practitioners of Elliott Wave use labels for different wave degrees, from those wave that occur matter of minutes to waves that taken hundreds of years to unfold. All waves are theorized to have a direct relation to the Fibonacci sequence in time and price.
The following labels were proposed by Ralph Nelson Elliott on his works on Elliott Wave Theory. Add a commentMore Articles...
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Welcome to EWT
This site is dedicated to the education and practice of Elliott Wave Theory as a trading tool for short term and intermediate term traders. Here you will find plenty of free education on Elliott Wave Theory as well and the most up to date wave counts. We also will be developing wave counts for traders that want to use EWT as a tool for entry and exit points. We will be making announcements soon.
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China's leap over Japan recently as the world's second biggest economy made headlines this week but China has been growing already for over 30 years at rates never seen in any other major economy in modern times.
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Social mood change does not necessarily affect every individual involved, but in the aggregate, the people participating in markets act as a crowd. Therefore, social moods can be TA indicators in themselves.
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According to an investment outlook report published this week by wealth manager Bessemer Trust Co. NA, “while no indicator can be infallible, midterm congressional elections have historically been accompanied by stock market strength.”
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Optimism over the economic outlook held by small business leaders fell in July as worries about the future mounted, a report by the National Federation of Independant Business.
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Making a good living trading stocks is no easy feat. In fact, 95% of day traders lose money. The key to succeeding takes years of trial and error of different methods.