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freeforex
(Central, Egypt)
freeforex
Central, Egypt
Posts: 0
16 days ago
Nov 8, 2020 7:06
In Thread: EUR
Understanding Fundamentals
In business and economics, fundamentals represent the primary characteristics and financial data necessary to determine the stability and health of an asset. This data can include macroeconomic, or large-scale factors, and microeconomic, or small-scale factors to set a value on securities or businesses.
Analysts and investors examine these fundamentals to develop an estimate as to whether the underlying asset is considered a worthwhile investment, and if there is fair valuation in the market. For businesses, information such as profitability, revenue, assets, liabilities, and growth potential are considered fundamentals. Through the use of fundamental analysis, you may calculate a company's financial ratios to determine the feasibility of the investment. https://www.freeforex-signals.com/
While fundamentals are most often considered factors that relate to particular businesses or securities, national economies, and their currencies also have a set of fundamentals that can be analyzed. For example, interest rates, gross domestic product (GDP) growth, trade balance surplus/deficits, and inflation levels are some factors that are considered to be fundamentals of a nation's value.
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Macroeconomic and Microeconomic Fundamentals
Macroeconomic fundamentals are topics that affect an economy at-large, including statistics regarding unemployment, supply and demand, growth, and inflation, as well as considerations for monetary or fiscal policy and international trade. These categories can be applied to the analysis of a large-scale economy as a whole or can be related to individual business activity to make changes based on macroeconomic influences. Large scale, macroeconomic fundamentals are also part of the top-down analysis of individual companies.
Microeconomic fundamentals focus on the activities within smaller segments of the economy, such as a particular market or sector. This small-scale focus can include issues of supply and demand within the specified segment, labor, and both consumer and firm theories. Consumer theory investigates how people spend within their particular budget restraints. The theory of the firm states that a business exists and makes decisions to earn profits.
Fundamentals in Business
By looking at the economics of a business, including the overall management and the financial statements, investors are looking at a company's fundamentals. Not only do these data points show the health of the business, but they also indicate the probability of further growth. A company with little debt and sufficient cash is considered to have strong fundamentals.
Strong fundamentals suggest that a business has a viable framework or financial structure. Conversely, those with weak fundamentals may have issues in the areas of debt obligation management, cost control, or overall organizational management. A business with strong fundamentals may be more likely to survive adverse events, like economic recessions or depressions, than one with weaker fundamentals. Also, strength may indicate less risk should an investor consider purchasing securities associated with the businesses mentioned.
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Fundamental Analysis
Investors and financial analysts are interested in evaluating the fundamentals of a company to compare its economic position relative to its industry peers, to the broader market, or to itself over time. Fundamental analysis involves digging deep into a company's financial statements to extract its profit and growth potential, relative riskiness, and to ultimately decide if its shares are over, under, or fairly valued in the market.
Often fundamental analysis involves computing and analyzing ratios to make apples-to-apples comparisons. Some common fundamental analysis ratios are listed below.
The debt-to-equity ratio (DE) measures how a company is financing its operations.
The quick ratio measures the company’s ability to meet its short-term obligations.
The degree of financial leverage (DFL) measures the stability or volatility of the earnings per share (EPS).
The price-to-earnings (P/E) ratio compares investment to earnings dollars.
The DuPont analysis looks at return on equity (ROE) by looking at asset use efficiency, operating efficiency, and financial leverage.
Fundamental analysis should be carried out with a holistic approach, utilizing several ratios and including a bottom-up as well as a top-down analysis to come to specific conclusions and actions.
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Real World Example
In the fourth quarter of 2018, according to Market Watch, large-cap tech companies Microsoft and Apple had similar market caps for the first time since 2010. Although the two companies had similar market caps of about $850 billion, they had very different fundamentals. For example, Microsoft was trading at 45X earnings while Apple was trading at 15X earnings.1


freeforex
Central, Egypt
Posts: 0
42 days ago
Oct 13, 2020 18:10

Personal capital financing
Platform: iOS, Android, AmazonCost: Free
Over 2.4 million people track their finances using personal capital, which includes more than 22,000 investment clients in all US states (as of December 2019). 1 Sync almost any investment account, including retirement and taxable accounts, then track Performance and customization, and graphics with easy-to-read graphs and charts. Track investments by account, asset class, or individual security. The You Index tracks your holdings and measures their performance against major market indices, so you can see your progress in stocks, cash, ETFs and mutual funds positions.

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The portfolio check feature determines whether you can save money on mutual fund fees, and the asset allocation review reveals diversification opportunities. Work with a personal wealth management advisor to discuss your investment needs via FaceTime, email or phone. Bank-wide app security uses a two-step remote authentication process. https://www.freeforex-signals.com/
The main concerns
Mobile portfolio management apps can provide information on your investments from 401K (s) to IRAs.
Some wallet management apps can sync with your existing accounts, and most are free.
Some of the more popular apps include SigFig Wealth Management, Personal Capital, and Stocks Portfolio Manager.
SigFig Wealth Management
Platform: iOS, Android Cost: Free
Use the wealth management app of investment company SigFig to track all of your investment accounts for free. SigFig automatically pulls your investment accounts from more than 50 leading brokers into a single dashboard to provide you with a real-time view of every stock, mutual fund, ETF, and option you own. 2 In addition, it provides snapshots of the 401 (k)) plan. And IRAs. You'll get weekly email summaries of account performance, news affecting your portfolio, and alerts focused on the top gainers and losers.

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The app automatically analyzes your portfolio to find hidden charts and overexposures for a single stock / industry. For a fee, users can improve their returns through automated investing. SigFig will optimize your portfolio and provide daily monitoring to keep it on track through rebalancing, profit reinvestment and tax-efficient strategies. https://www.freeforex-signals.com/
Tape: a stock portfolio manager
Platform: iOS, cost: free
Ticker lets you manage multiple equity portfolios - think growth, technology, and retirement portfolios - from one dashboard. Color charts, graphs, and detailed analyzes display real-time account values, daily profit / loss, daily profit / loss, customization, money weighted return rate (MWRR), time-weighted rate of return (TWRR), plus news related to symbols. Manually enter trading information for stocks and currency pairs such as EUR / USD, mutual funds and ETFs, including dividends, splits, buy / sell orders, indicator symbol, trading volume, price, date, and brokerage fees. Track stocks with multiple watchlists, and create alerts to notify you if a stock is trading above or below the stimulus level you selected, based on price, volume, and percentage of changes.

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Hey ho! Financial
Platform: iOS, Android Cost: Free
Hey ho! Finance has an easy-to-use design, so you can easily track your stocks, commodities, bonds, and currencies.4 Get personalized news and alerts and follow market movements in real time. Set watchlists and get live quotes while monitoring your portfolio performance.

Hey ho! Finance is one of the largest business news sites in the United States with data, comments, and press releases within its daily content. Of course, Yahoo! Finance app users also have quick access to this urgent information at a glance.

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Portfolio management apps easily track your investments from anywhere, anytime. Some apps sync with your existing accounts, while others require you to manually enter information about your assets. Either way, these apps provide the most up-to-date information - so you know where you stand now - as well as provide tools to help you get where you want to be in the future.

freeforex
Central, Egypt
Posts: 0
2 months ago
Sep 24, 2020 20:04

Margin trading
Margin trading makes it easier for traders to enter into trading opportunities as you don't have to worry about spending a lot of cash to acquire an asset.


Margin is the interest owed on loans between you and your broker in relation to the assets of your portfolio. For example, if you short sell shares, you must first borrow it on margin and then sell it to the buyer. Or, if you buy on margin, you will be offered the ability to leverage your money to buy more shares than the cash you spend.
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For example, with a margin of 10%, you can buy up to $ 1,000 worth of shares with only $ 100 subtracting. You are given an additional $ 900 in the form of a marginal loan, on which you will have to pay interest. If you have a margin account, it is important that you understand how this margin interest is calculated and be able to calculate it yourself manually when needed. It is just as important as the interest on your savings account. https://www.freeforex-signals.com/

Before making a calculation, you must first know the margin interest rate your broker charges for borrowing money. The mediator should be able to answer this question. Alternatively, the company's website may be a valuable source for this information, as well as account confirmation and / or monthly and quarterly account statements.


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Usually the broker will list their margin rates alongside other disclosures of fees and costs. Often times, the margin interest rate depends on the number of assets you have with your broker, the more money you have with them, the lower the margin interest you are responsible for paying. https://www.freeforex-signals.com/

Margin interest calculation
Once you know the margin interest rate being charged, grab a pencil, piece of paper, and calculator and you'll be ready to find out the total cost of the margin interest payable. Here's a hypothetical example:

Let's say you want to borrow $ 30,000 to buy a stock that you intend to hold for 10 days where the interest margin is 6% per annum.

In order to calculate the cost of borrowing, first, take the amount of money borrowed and multiply it by the rate charged:

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$ 30,000 x .06 (6%) = $ 1,800
Then take the resulting number and divide it by the number of days of the year. Typically, the brokerage industry uses 360 days, not the anticipated 365 days.

$ 1,800 / $ 360 = 5
Next, multiply that number by the total number of days you've borrowed, or expect to borrow money on margin:

5 x 10 = $ 50
Using this example, it would cost you $ 50 in margin interest to borrow $ 30,000 for 10 days.

While margin can be used to amplify profits in the event that the stock rises and a leveraged purchase is made, losses can also be amplified if the price of your investment falls, resulting in a margin call, or the need to add more cash to your account to cover those paper losses.

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Remember that whether you win or lose on a trade, you still owe the same margin interest that was charged in the original transaction.

The bottom line
Margin trading is a risky business, but it can be profitable if managed properly and, most importantly, if the trader does not get over himself. It also makes accessing specific asset values easier as the trader does not need to pay the total cost of the asset when he sees an interesting trading opportunity. When entering into a margin trade, it is important to calculate the cost of borrowing in order to determine the true cost of the deal, which will accurately indicate profit or loss.


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freeforex
Central, Egypt
Posts: 0
2 months ago
Sep 2, 2020 21:04

What is constant proportion portfolio insurance (CPPI)? https://www.freeforex-signals.com/

Understanding Constant Proportion Portfolio Insurance (CPPI)
Constant Proportion Portfolio Insurance (CPPI) allows an investor to maintain exposure to the upside potential of a risky asset while offering a capital guarantee against downside risk. The result of the CPPI strategy is somewhat similar to buying a call option, but it does not use option contracts. Therefore, CPPI is sometimes referred to as a convex strategy, as opposed to a "concave strategy" as a constant mix. Financial institutions sell CPPI products on a variety of risk assets, including stocks and credit default swaps.
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KEY TIPS
CPPI is a strategy to combine the advantage of exposure to the equity market with investments in a conservative financial instrument. This is done by assigning a specifically calculated investment percentage to a risk account.
A multiplier is used to determine the amount of risk an investor is willing to take.
Investors can rebalance their positions on a monthly or quarterly basis.
How Constant Proportion Portfolio Insurance (CPPI) Works https://www.freeforex-signals.com/forex-signals/
The investor will make an initial investment in the risk asset equal to the value of: (Multiplier) x (value of the cushion in dollars) and will invest the rest in the conservative asset. The value of the multiplier is based on the investor's risk profile and is obtained by first asking what the maximum loss in a day of the risk investment could be. The multiplier will be the inverse of that percentage. As the value of the portfolio changes over time, the investor will rebalance according to the same strategy. https://www.freeforex-signals.com/
CPPI consists of two accounts: a risk account and a security account. As their names indicate, both accounts serve specific purposes in an individual's overall investment strategy. The risk account is leveraged with futures holdings to hedge against the downside of significant exposure to equities. The funds are dynamically transferred between the two accounts based on the economic environment.

The schedule for rebalancing is up to the investor, with monthly or quarterly examples being frequently cited. Typically, CPPI is implemented over five-year periods. Ideally, the value of the cushion will grow over time, allowing more money to flow into the risk asset. However, if the buffer falls, the investor may need to sell a portion of the risk asset to keep the asset allocation targets intact.
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One of the problems with implementing a CPPI strategy is that you do not immediately "de-risk" your holdings when markets move in the opposite direction. A hypothetical CPPI strategy on a five-year investment time horizon would have underperformed the S&P 500 for several years after the 2008 financial crisis.
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CPPI example
Consider a hypothetical portfolio of $ 100,000, of which the investor decides that $ 90,000 is the absolute floor. If the portfolio falls to $ 90,000 in value, the investor would move all assets to cash to preserve capital.
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If one decides that 20 percent is the maximum chance of "falling", the value of the multiplier will be (1 / 0.20), or 5. Multiplier values between 3 and 6 are very common. Based on the information provided, the investor would allocate 5 x ($ 100,000 - $ 90,000) or $ 50,000 to the risk asset, with the remainder going to the cash or conservative asset.
freeforex
Central, Egypt
Posts: 0
5 months ago
May 30, 2020 22:19

Random walk or Non-random walk for forex

Introduction
The great debate continues between random walkers and non-random walkers. Two competing books best represent these theories. Originally written by Burton Malkiel in 1973, A Random Walk Down Wall Street has become a classic in investment literature. Malkiel, a Princeton economist, argues that price movements are largely random and that investors cannot outperform major indices.

Random walk vs Non-random walk and Free Forex Signals

Written by Andrew W. Lo and A. Craig MacKinlay in 2001, the appropriately titled A Non-Random Walk Down Wall Street provides the counter-argument. Lo, a professor of finance at MIT and MacKinlay, a professor of finance at Wharton, argue that price movements are not so random and that there are predictable components. Let the battle begin!

Random walk theory and Free Forex Signals

With "random walk," Malkiel claims that price movements in stocks are unpredictable. Due to this random walk, investors cannot consistently outperform the market as a whole. Applying fundamental analysis or technical analysis to market time is a waste of time that will simply lead to poor performance. Investors would be better off buying and holding an index fund.
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Malkiel offers two popular investment theories that correspond to fundamental analysis and technical analysis. On the fundamental side, the "Firm Foundation Theory" argues that shares have an intrinsic value that can be determined by discounting future cash flows (earnings). Investors can also use valuation techniques to determine the true value of a security or market. Investors decide when to buy or sell based on these valuations.

On the technical side and Forex Signals the "castle in the air theory" assumes that successful investing depends on behavioral finance. Investors must determine the mood of the market: bull or bear. Valuations are not important because a security is only worth what someone is willing to pay for it.

The random walk theory agrees with the semi-strong efficient hypothesis in its claim that it is impossible to consistently outperform the market. This theory argues that stock prices are efficient because they reflect all known information (earnings, expectations, dividends). Prices adjust quickly to new information and it is practically impossible to act on this information. Also, the price moves only with the advent of new information and this information is random and unpredictable.
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In short, Malkiel attributes any superior performance success to the lady's luck. If enough people try, some are likely to outperform the market, but most are likely to underperform.

Non-random walk theory and the best Free Forex Signals
A non-random tour of Wall Street is a collection of essays that provide empirical evidence that valuable information can be gleaned from security prices. Lo and MacKinlay used powerful computers and advanced econometric analysis to test the randomness of security prices. Although this book is a great read, the findings should be of interest to technical analysts and cartographers. In summary, this book documents the presence of predictable components in stock prices.

Just before this book, Andrew Lo wrote an article for the Journal of Finance in 2000: Fundamentals of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation. Harry Mamaysky and Jiang Wang also contributed. The newspaper's initial comments say it all:

“Technical analysis, also known as charts, has been part of financial practice for many decades, but this discipline has not received the same level of academic scrutiny and acceptance as more traditional approaches like fundamental analysis. One of the main obstacles is the highly subjective nature of technical analysis. The presence of geometric shapes on historical price charts is often in the viewer's eyes. In this paper, we propose a systematic and automatic approach to technical pattern recognition using non-parametric kernel regression and apply this method to a large number of EE stocks. USA From 1962 to 1996 to evaluate the effectiveness of technical analysis. When comparing the unconditional empirical distribution of daily stock returns with the conditional distribution conditioned by specific technical indicators, such as head and shoulders or double bottom, we found that during the 31-year sample period, several technical indicators provide incremental information and may have some practical value. Find more Free Forex Signals athttps://www.freeforex-signals.com/

freeforex
Central, Egypt
Posts: 0
6 months ago
May 10, 2020 3:26
In Thread: CHF
The best forex trading signals live presented by free forex signals
GBP USD
SELL from 1.2460
Take profit 1.2300
Stop loss 1.2540
type order Market Execution is entering this trade at any price from 1.2460
technical analysis and forex signals for GBP USD
waves in the same direction will tend toward equality SO GBPUSD WILL resume bearish wave to level 1.2130
Riding Wave C in a Zigzag
Trend continues till gives a reversal signal
on hourly chart the Last wave determine the end of the pattern and Consists of zigzag that generate sell GBPUSD forex signals
reversal candlestick pattern on daily chart is shooting star
The price behavior is the result of Environmental pattern
Current surrounding Repetitive pattern is zigzag Wave C = 1.618 Wave A
History Repeats Itself that the future is just a repetition of the past
The bearish movement from level 1.3510 to level 1.1410 appeared before on price chart at 19-6-2015 and followed with bullish movement equal the current bullish movement from level 1.2240 to 1.2520 that give forex trading signals to sell GBP USD and according to this movement GBP USD will decline to 1.0580
Also The bearish movement from level 1.2650 to level 1.2240 appeared before on price chart at 9-7-2018 and followed with bullish movement equal the current bullish movement from level 1.1410 to 1.2650 that give forex trading signals to sell GBP USD so the gbp usd will decline near to level 1.1970
surrounding Repetitive pattern before this movement expanded flat Wave C = 1.618 Wave A
We expect price will repeat the same movement again and gbp usd price will go down toward 1.1970
Maybe the correction equal only one wave of previous correction
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freeforex
Central, Egypt
Posts: 0
8 months ago
Mar 8, 2020 20:44
In Thread: CHF

Wave Personality
The idea of wave personality is a substantial expansion of the Wave Principle. It has the advantage of bringing human behavior more personally into the equation.
free forex signals and The personality of each wave in the Elliott sequence is an integral part of the reflection of the mass psychology it embodies. The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around, producing similar circumstances at corresponding points in the wave structure. As the Wave Principle indicates, market history repeats but not exactly. Every wave has siblings (same-directional waves of the same degree within a larger wave) and cousins (samedegree and same-numbered waves within different larger waves) but no wave has a twin. Related waves — particularly cousins — have similar market and social characteristics. The personality of each wave type is manifest whether the wave is of Grand Supercycle degree or Subminuette. Waves’ properties not only forewarn what to expect in the next sequence but at times can help determine the market’s present location in the progression of waves, when for other reasons the count is unclear or open to differing interpretations. As waves are in the process of unfolding, there are times when several different wave counts are perfectly admissible under all known Elliott rules. It is at these junctures that a knowledge of wave personality can be invaluable. Recognizing the character of a single wave can often allow you to interpret correctly the complexities of the larger pattern. The following discussions relate to an underlying bull market picture, as illustrated in Figures 2-14 and 2-15. These observations apply in reverse when the actionary waves are downward and the reactionary waves are upward.
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1) First waves — As a rough estimate, about half of first waves are part of the "basing" process and thus tend to be heavily corrected by wave two. In contrast to the bear market rallies within the previous decline, however, this first wave rise is technically more constructive, often displaying a subtle increase in

Figure 2-14
volume and breadth. Plenty of short selling is in evidence as the majority has finally become convinced that the overall trend is down. Investors have finally gotten "one more rally to sell on," and they take advantage of it. The other fifty percent of first waves rise from either large bases formed by the previous correction, as in 1949, from downside failures, as in 1962, or from extreme compression, as in both 1962 and 1974. From such beginnings, first waves are dynamic and only moderately retraced.
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2) Second waves — Second waves often retrace so much of wave one that most of the profits gained up to that time are eroded away by the time it ends. This is especially true of call option purchases, as premiums sink drastically in the environment of 79 fear during second waves. At this point, investors are thoroughly convinced that the bear market is back to stay. Second waves often end on very low volume and volatility, indicating a drying up of selling pressure.
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3) Third waves — Third waves are wonders to behold. They are strong and broad, and the trend at this point is unmistakable. Increasingly favorable fundamentals enter the picture as confidence returns. Third waves usually generate the greatest volume and price movement and are most often the extended wave in a series. It follows, of course, that the third wave of a third wave, and so on, will be the most volatile point of strength in any wave sequence. Such points invariably produce breakouts, "continuation" gaps, volume expansions, exceptional breadth, major Dow Theory trend confirmations and runaway price movement, creating large hourly, daily, weekly, monthly or yearly gains in the market, depending on the degree of the wave. Virtually all stocks participate in third waves. Besides the personality of B waves, that of third waves produces the most valuable clues to the wave count as it unfolds.
4) Fourth waves — Fourth waves are predictable in both depth (see page 66) and form, because by alternation they should differ from the previous second wave of the same degree. More often than not they trend sideways, building the base for the final fifth wave move. Lagging stocks build their tops and begin declining during this wave, since only the strength of a third wave was able to generate any motion in them in the first place. This initial deterioration in the market sets the stage for non-confirmations and subtle signs of weakness during the fifth wave.
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5) Fifth waves — Fifth waves in stocks are always less dynamic than third waves in terms of breadth. They usually display a slower maximum speed of price change as well, although if a fifth wave is an extension, speed of price change in the third of the fifth can exceed that of the third wave. Similarly, while it is common for volume to increase through successive impulse waves at Cycle degree or larger, it usually happens in a fifth wave below Primary degree only if the fifth wave extends. Otherwise, look for lesser volume as a rule in a fifth wave as opposed to the third. Market dabblers sometimes call for "blowoffs" at the end of long trends, but the stock market has no history of reaching maximum acceleration at a peak. Even if a fifth wave extends, the fifth of the fifth will lack the dynamism that preceded it. During advancing fifth waves, optimism runs extremely high despite a narrowing of breadth. Nevertheless, market action does improve relative to prior corrective wave rallies. For example, the year-end rally in 1976 was unexciting in the Dow, but it was nevertheless a motive wave as opposed to the preceding corrective wave advances in April, July and September, which, by contrast, had even less influence on the secondary indexes and the cumulative advance-decline line. As a monument to the optimism that fifth waves can produce, the advisory services polled two weeks after the conclusion of that rally turned in the lowest percentage of "bears," 4.5%, in the history of the recorded figures despite that fifth wave’s failure to make a new high!
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6) A waves — During the A wave of a bear market, the investment world is generally convinced that this reaction is just a pullback pursuant to the next leg of advance. The public surges to the buy side despite the first really technically damaging cracks in individual stock patterns. The A wave sets the tone for the B wave to follow. A five-wave A indicates a zigzag for wave B, while a three-wave A indicates a flat or triangle.
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7) B waves — B waves are phonies. They are sucker plays, bull traps, speculators’ paradise, orgies of odd-lotter mentality or expressions of dumb institutional complacency (or both). They often involve a focus on a narrow list of stocks, are often "unconfirmed" (see Dow Theory discussion in Chapter 7) by other averages, are rarely technically strong, and are virtually always doomed to complete retracement by wave C. If the analyst can easily say to himself, "There is something wrong with this market," chances are it’s a B wave. X waves and D waves in expanding triangles, both of which are corrective wave advances, have the same characteristics. Several examples will suffice to illustrate the point.
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freeforex
Central, Egypt
Posts: 0
9 months ago
Feb 21, 2020 11:54
Elliott Wave Principle and Combination (Double and Triple Three)

free forex signals Elliott called a sideways combination of two corrective patterns a "double three" and three patterns a "triple three." While a single three is any zigzag or flat, a triangle is an allowable final component of such combinations and in this context is called a "three." A combination is composed of simpler types of corrections, including zigzags, flats and triangles. Their occurrence appears to be the flat correction’s way of extending sideways action. As with double and triple zigzags, the simple corrective pattern components are labeled W, Y and Z. Each reactionary wave, labeled X, can take the shape of any corrective pattern but is most commonly a zigzag. As with multiple zigzags, three patterns appear to be the limit, and even those are rare compared to the more common double three.
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Combinations of threes were labeled differently by Elliott at different times, although the illustrative pattern always took the shape of two or three juxtaposed flats, as shown in Figures 1-45 and 1-46. However, the component patterns more commonly alternate in form. For example, a flat followed by a triangle is a more typical type of double three (which we now know as of 1983; see Appendix), as illustrated in Figure 1-47.
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A flat followed by a zigzag is another example, as shown in Figure 1-48. Naturally, since the figures in this section depict corrections in bull markets, they need only be inverted to observe them as upward corrections in bear markets.

Figure 1-47

Figure 1-48
For the most part, a combination is horizontal in character. Elliott indicated that the entire formation could slant against the larger trend, although we have never found this to be the case. One reason is that there never appears to be more than one zigzag in a combination. Neither is there more than one triangle. Recall that triangles occurring alone precede the final movement of a larger trend. Combinations appear to recognize this character and sport triangles only as the final wave in a double or triple three.
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Although different in that their angle of trend is sharper than the sideways trend of combinations (see the guideline of alternation in Chapter 2), double and triple zigzags (see Figure 1-26) can be characterized as non-horizontal combinations, as Elliott seemed to suggest in Nature’s Law. But double and triple threes are different from double and triple zigzags not only in their angle but in their goal. In a double or triple zigzag, the first zigzag is rarely large enough to constitute an adequate price correction of the preceding wave. The doubling or tripling of the initial form is usually necessary to create an adequately sized price retracement. In a combination, however, the first simple pattern often constitutes an adequate price correction. The doubling or tripling appears to occur mainly to extend the duration of the corrective process after price targets have been substantially met. Sometimes additional time is needed to reach a channel line or achieve a stronger kinship with the other correction in an impulse. As the consolidation continues, the attendant psychology and fundamentals extend their trends accordingly.
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As this section makes clear, there is a qualitative difference between the series 3 + 4 + 4 + 4, etc., and the series 5 + 4 + 4 + 4, etc. Notice that while an impulse wave has a total count of 5, with extensions leading to 9 or 13 waves, and so on, a corrective wave has a count of 3, with combinations leading to 7 or 11 waves, and so on. The triangle appears to be an exception, although it can be counted as one would a triple three, totaling 11 waves. Thus, if an internal count is unclear, you can sometimes reach a reasonable conclusion merely by counting waves. A count of 9, 13 or 17 with few overlaps, for instance, is likely motive, while a count of 7, 11 or 15 with numerous overlaps is likely corrective. The main exceptions are diagonals of both types, which are hybrids of motive and corrective forces.
Orthodox Tops and Bottoms
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Sometimes a pattern’s end differs from the associated price extreme. In such cases, the end of the pattern is called the "orthodox" top or bottom in order to differentiate it from the actual price high or low that occurs intra-pattern or after the end of the pattern. For example, in Figure 1-14, the end of wave (5) is the orthodox top despite the fact that wave (3) registered a higher price. In Figure 1-13, the end of wave 5 is the orthodox bottom. In Figures 1-33 and 1-34, the starting point of wave A is the orthodox top of the preceding bull market despite the higher high of wave B. In Figures 1-35 and 1-36, the start of wave A is the orthodox bottom. In Figure 1-47, the end of wave Y is the orthodox bottom of the bear market even though the price low occurs at the end of wave W. https://www.freeforex-signals.com/
This concept is important primarily because a successful analysis always depends upon a proper labeling of the patterns. Assuming falsely that a particular price extreme is the correct starting point for wave labeling can throw analysis off for some time, while being aware of the requirements of wave form will keep you on track. Further, when applying the forecasting concepts that will be introduced in Chapter 4, the length and duration of a wave are typically determined by measuring from and projecting orthodox ending points.
Reconciling Funtion and Mode
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Earlier in this chapter, we described the two functions waves may perform (action and reaction), as well as the two modes of structural development (motive and corrective) that they undergo. Now that we have reviewed all types of waves, we can summarize their labels as follows:
— The labels for actionary waves are 1, 3, 5, A, C, E, W, Y and Z.
— The labels for reactionary waves are 2, 4, B, D and X.
As stated earlier, all reactionary waves develop in corrective mode, and most actionary waves develop in motive mode. The preceding sections have described which actionary waves develop in corrective mode. They are:
— waves 1, 3 and 5 in an ending diagonal,
— wave A in a flat correction,
— waves A, C and E in a triangle,
— waves W and Y in a double zigzag and a double three,
— wave Z in a triple zigzag and a triple three.
Because the waves listed above are actionary in relative direction yet develop in corrective mode, we term them "actionary corrective" waves.
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freeforex
Central, Egypt
Posts: 0
9 months ago
Feb 5, 2020 23:14
Elliott Wave and Diagonal
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A diagonal is a motive pattern yet not an impulse, as it has two corrective characteristics. As with an impulse, no reactionary subwave fully retraces the preceding actionary subwave, and the third subwave is never the shortest. However, a diagonal is the only five-wave structure in the direction of the main trend within which wave four almost always moves into the price territory of (i.e., overlaps) wave one and within which all the waves are "threes," producing an overall count of 3-3-3-3-3. On rare occasions, a diagonal may end in a truncation, although in our experience such truncations occur only by the slimmest of margins. This pattern substitutes for an impulse at two specific locations in the wave structure.
Ending Diagonal
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An ending diagonal occurs primarily in the fifth wave position at times when the preceding move has gone "too far too fast," as Elliott put it. A very small percentage of diagonals appear in the C-wave position of A-B-C formations. In double or triple threes (see next section), they appear only as the final C wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement. https://www.freeforex-signals.com/
A contracting diagonal takes a wedge shape within two converging lines. This most common form for an ending diagonal is illustrated in Figures 1-15 and 1-16 and shown in its typical position within a larger impulse wave. https://www.freeforex-signals.com/forex-signals/
We have found one case in which an ending diagonal’s boundary lines diverged, creating an expanding diagonal rather than a contracting one. However, it is unsatisfying analytically in that its third wave was the shortest actionary wave.
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Ending diagonals have occurred recently in Minor degree as in early 1978, in Minute degree as in February-March 1976, and in Subminuette degree as in June 1976. Figures 1-17 and 1-18 show two of these periods, illustrating one upward and one downward "real life" formation. Figure 1-19 shows our real-life possible expanding diagonal. Notice that in each case, an important change of direction followed.
Although not so illustrated in Figures 1-15 and 1-16, the fifth wave of an ending diagonal often ends in a "throw-over," i.e., a brief break of the trendline connecting the end points of waves one and three. The real-life examples in Figures 1-17 and 1-19 show throw-overs. While volume tends to diminish as a diagonal of small degree progresses, the pattern always ends with a spike of relatively high volume when a throw-over occurs. On rare occasions, the fifth subwave falls short of its resistance trendline.
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A rising ending diagonal is usually followed by a sharp decline retracing at least back to the level where it began and typically much further. A falling ending diagonal by the same token usually gives rise to an upward thrust.
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Fifth wave extensions, truncated fifths and ending diagonals all imply the same thing: dramatic reversal ahead. At some turning points, two of these phenomena have occurred together at different degrees, compounding the violence of the next move in the opposite direction.
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Leading Diagonal
It has recently come to light that a diagonal occasionally appears in the wave 1 position of impulses and in the wave A position of zigzags. In the few examples we have, the subdivisions appear to be the same: 3-3-3-3-3, although in two cases, they can be labeled 5-3-5-3-5, so the jury is out on a strict definition. Analysts must be aware of this pattern to avoid mistaking it for a far more common development, a series of first and second waves, as illustrated in Figure 1-8. A leading diagonal in the wave one position is typically followed by a deep retracement
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Figure 1-20 shows a real-life leading diagonal. We have recently observed that a leading diagonal can also take an expanding shape. This form appears to occur primarily at the start of declines in the stock market (see Figure 1-21). These patterns were not originally discovered by R.N. Elliott but have appeared enough times and over a long enough period that the authors are convinced of their validity.
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Corrective Waves https://www.freeforex-signals.com/free-forex-signals/
Markets move against the trend of one greater degree only with a seeming struggle. Resistance from the larger trend appears to prevent a correction from developing a full motive structure. This struggle between the two oppositely-trending degrees generally makes corrective waves less clearly identifiable than motive waves, which always flow with comparative ease in the direction of the one larger trend. As another result of this conflict between trends, corrective waves are quite a bit more varied than motive waves. Further, they occasionally increase or decrease in complexity as they unfold so that what are technically subwaves of the same degree can by their complexity or time length appear to be of different degree (see Figures 2-4 and 2-5). For all these reasons, it can be difficult at times to fit corrective waves into recognizable patterns until they are completed and behind us. As the terminations of corrective waves are less predictable than those for motive waves, you must exercise more patience and flexibility in your analysis when the market is in a meandering corrective mood than when prices are in a persistent motive trend.
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The single most important rule that can be gleaned from a study of the various corrective patterns is that corrections are never fives. Only motive waves are fives. For this reason, an initial five-wave movement against the larger trend is never the end of a correction, only part of it. The figures in this section should serve to illustrate this point.
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Corrective processes come in two styles. Sharp corrections angle steeply against the larger trend. Sideways corrections, while always producing a net retracement of the preceding wave, typically contain a movement that carries back to or beyond its starting level, thus producing an overall sideways appearance. The discussion of the guideline of alternation in Chapter 2 explains the reason for noting these two styles.
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Specific corrective patterns fall into three main categories: Zigzag (5-3-5; includes three types: single, double and triple);
Flat (3-3-5; includes three types: regular, expanded and running);
Triangle (3-3-3-3-3; three types: contracting, barrier and expanding; and one variation: running).
A combination of the above forms comes in two types: double three and triple three.

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freeforex
Central, Egypt
Posts: 0
10 months ago
Jan 7, 2020 15:07
In Thread: Your Top Trade?
Elliott Wave Principle and Basic Tenets
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The Wave Principle is governed by man’s social nature, and since he has such a nature, its expression generates forms. As the forms are repetitive, they have predictive value.

Sometimes the market appears to reflect outside conditions and events, but at other times it is entirely detached from what most people assume are causal conditions. The reason is that the market has a law of its own. It is not propelled by the external causality to which one becomes accustomed in the everyday experiences of life. The path of prices is not a product of news. Nor is the market the cyclically rhythmic machine that some declare it to be. Its movement reflects a repetition of forms that is independent both of presumed causal events and of periodicity.
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The market’s progression unfolds in waves. Waves are patterns of directional movement. More specifically, a wave is any one of the patterns that naturally occur, as described in the rest of this chapter.

The Five Wave Pattern
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In markets, progress ultimately takes the form of five waves of a specific structure. Three of these waves, which are labeled 1, 3 and 5, actually effect the directional movement. They are separated by two countertrend interruptions, which are labeled 2 and 4, as shown in Figure 1-1. The two interruptions are apparently a requisite for overall directional movement to occur.

Elliott noted three consistent aspects of the five-wave form. They are: Wave 2 never moves beyond the start of wave 1; wave 3 is never the shortest wave; wave 4 never enters the price territory of wave 1.

R.N. Elliott did not specifically say that there is only one overriding form, the “five-wave” pattern, but that is undeniably the case. At any time, the market may be identified as being somewhere in the basic five-wave pattern at the largest degree of trend. Because the five-wave pattern is the overriding form of market progress, all other patterns are subsumed by it.
1.3 Wave Mode
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There are two modes of wave development: motive and corrective. Motive waves have a five-wave structure, while corrective waves have a three-wave structure or a variation thereof. Motive mode is employed by both the five-wave pattern of Figure 1-1 and its same-directional components, i.e., waves 1, 3 and 5. Their structures are called “motive” because they powerfully impel the market. Corrective mode is employed by all countertrend interruptions, which include waves 2 and 4 in Figure 1-1. Their structures are called “corrective” because each one appears as a response to the preceding motive wave yet accomplishes only a partial retracement, or “correction,” of the progress it achieved. Thus, the two modes are fundamentally different, both in their roles and in their construction, as will be detailed throughout this chapter.
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Figure 1-1
The Complete Cycle
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One complete cycle consisting of eight waves, then, is made up of two distinct phases, the five-wave motive phase (also called a “five”), whose subwaves are denoted by numbers, and the threewave corrective phase (also called a “three”), whose subwaves are denoted by letters. Just as wave 2 corrects wave 1 in Figure 1-1, the sequence A, B, C corrects the sequence 1, 2, 3, 4, 5 in Figure 1-2.

Figure 1-2
Compound Construction
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When an initial eight-wave cycle such as shown in Figure 1-2 ends, a similar cycle ensues, which is then followed by another five-wave movement. This entire development produces a fivewave pattern of one degree (i.e., relative size) larger than the waves of which it is composed. The result is shown in Figure 1-3 up to the peak labeled (5). This five-wave pattern of larger degree is then corrected by a three-wave pattern of the same degree, completing a larger full cycle, depicted as Figure 1-3.
As Figure 1-3 illustrates, each same-direction component of a motive wave (i.e., wave 1, 3 and 5), and each full-cycle component (i.e., waves 1 + 2, or waves 3 + 4)of a cycle, is a smaller version of itself.
It is neccessary to understand a crucial point: Figure 1-3 not only illustrates a larger version of Figure 1-2, it also illustrates Figure 1-2 itself, in greater detail. In Figure 1-2, each subwave 1, 3 and 5 is a motive wave that must subdivide into a "five," and each subwave 2 and 4 is a corrective wave that must subdivide into a "three." Waves (1) and (2) in Figure 1-3, if examined under a "microscope," would take the same form as waves ? and ?. Regardless of degree, the form is constant. We can use Figure 1-3 to illustrate two waves, eight waves or thirty-four waves, depending upon the degree to which we are referring.
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Figure 1-3