MzansiObi replies to: Elliot Wave Analysis


{quote} tanx Stringfx Can you explain more about the following sentence? (do the math ?, aud/usd is a sell nzd/usd is a sell usd/cad is a buy )

what i mean is that when you check on the monthly performance in the site mentioned, you will find aud as the weakest currency and usd as the most powerful currency, followed by nzd and cad as weaker currency, so the tradeable current pairs are these 3 weak currencies against usd which is the most powerful. Here i am plotting an example of aud/usd which is a genuine sell from 6th of june and has done 238 pips in total until today. when you know the major direction of a currency pair, you can use any strategy to make more money.

In the current chart that i have shown, using a simple stochastic oscillator of 8,3,3. you could have made a lot of money. first draw a fib expansion on the current swing. you would have your Fibonacci levels clearly marked. This would be your market sentiment. when price reaches a strong Fibonacci level , stay away from the market and let it go up and wait for the oscillator to signal your further sells.

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