What's the first thing you see when you fix your eyes on a forex chart? What you will immediately see is a very particular pattern that embraces all the secrets that will make you have a successful forex trading career or a losing money adventure in the forex markets. This pattern is the ondulatory behavior of the forex markets. A pattern that seems to be present in most natural phenomena and also in man induced ones. Forex markets follow an ondulatory pattern with very particular oscillation that reflect the feelings and aspration of the market participants. All these forces that move the markets act at the same time on every currency represented in Forex and they produce the ondulatory behavior that we see on the charts.
For many years people has analyzed this and so far one of the most successful models for these "waves" is what Ralph Nelson Elliot found in his research. After analyzing a great number of charts he discovered in the late 1920's that the markets move in a repetitive manner far away from a totally chaotic behavior. Now this model for the behavior of the markets he found is what is called "Elliot Waves".
This model has been of great help for traders all around the globe, and not only in the forex markets but also in other major capital markets with the very similar ondulatory behavior. Elliot Waves have a repetitive nature implicit in their behavior, so by following the details of this model you can make a pretty accurate forecast of what the markets will do next when you want to enter a trade, just this fact will represent a huge advantage in your daily treatment with the forex markets.
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Source: www.a1articles.com
