Facts About Forex Elliott Wave Indicator

Facts About Forex Elliott Wave Indicator

Facts About Forex Elliott Wave Indicator

The growth phase of the Elliott wave theory may be exceedingly long as it could pile up to years or decades but the nature movement of the market and trading activities will eventually come to a repetition. There are several advantages of the theory; basically they come down to the compactness and organization it contributes to the chaotic pattern of the price. To make things much simpler to understand, there is an organized hierarchy of the market variations. This hierarchy gives a more immense precision in the trading decisions, widens one's horizon by expanding the domain beyond the uncertainties of the market and increasing people's confidence.

These advantages lead to a likely formulation of some advanced and sophisticated strategies to predict and estimate what may happen in the future. At least with the forex Elliott wave indicator, a trader could have a vague idea of what the market might turn into. Albeit being able to provide several benefits, the theory used could deliver a couple of disadvantages as well.

Probably one of the primary weaknesses of Elliott wave theory is the arbitrariness. It is not likely to have several people carrying out analysis on the same chart pattern and come up with similar conclusions or draft out similar results. No doubt, it is almost impossible to have large group of traders achieving a common consensus so probably the indicator is not being able to help everyone, only those who could conduct the accurate interpretations and perform the right decisions. Possibly, this is caused by the fluid and intuitive formulation of the theory itself as it is not a universally concluded concept.

In simpler explanation, the forex Elliott wave indicator is subjected to a possibility of being wrong. The market may appear to have some recurring cycles based on the visual analysis or past history but the true outcome may be a whole rainbow pattern of different variations, having little or no relation to the estimated fluctuations as well. Indeed it is a useful theory to have an organized planning for the market but the predictive power may not be as dependable as one may seem to think.

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