For those of you that aren't familiar with Elliott Wave theory I'll explain what it is. It's a theory that claims that markets move in waves based on traders emotions.
There are several different parts and I'll explain each. The first wave is the
Impulse wave. This wave is an upward wave that is broken down into five waves. You can see the chart below as an example. The impulse wave is basically a rally.
After the impulse wave we will go into the corrective waves. This is basically traders taking their profits. The
A wave is broken down into three or five waves. The
B wave is broken into three waves and sometimes will overlap the impulse wave. The C wave is broken down into three or five wave.
I have examples listed below for you to view:
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Trading futures contracts carries a high level of risk, and may not be suitable for all investors. Before deciding to trade commodities you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
http://www.commoditiesview.com
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