Elliott Wave application in forex, anyone ?

[soccer_daemon]

Hi gurus,

I am a big fan of EW in general as a method. And I am sure it has its own merit
in the stock market.

However, I am equally interested in knowing anyone on this forum actually trade
forex with EW as the key method plus some other forms of TA ? I've read some
publications about how in the stock market in general, one can base his/her
EW analysis on beginning of a grand supercycle imuplse wave going back to
early 1900 or possibly even earlier. It's on that premise that more recent time
frame of market movement can be analysed to gauge the "wave" movement
we are currently in and therefore to reach a trading decision.

However, for forex, no such bull/bear market relationship exists at all and
certainly we can't take, say, EUR/USD spot rate going back to its inception
and analyse its structure as if it's an impulsive move, since by which one would
have already casted the biased judgement of being more "bullish" on EUR than
on USD. The whole point of EW is that it be an objective method.

So, if any of you gurus out there are EW practioner, what would your approach
be for long, medium and short term trade using EW ?

Or is EW just too hard to apply in real-time trading forex ?

Thanks
SD

 

[c6ackp]

Hi sd -

There's a team of 7 analysts in Hong Kong who publish trading signals based on regular TA. They also factor in EW for their short term and daily forex signals. Their handbook claims that they find EW incredibly accurate for forex. Might be worth a look - acetrader.com...

Personally, I think it can be useful but it's only a small part of the big picture. The power of any technique starts out being close to zero and rises slowly with your experience of actually using it in real-time trading.

Also it's possible to make any technique look amazing by using hindsight and historical charts - hence all the guys selling systems and books.

Steve