FOREX THEORY
Summary of Riding Elliott’s Waves
There are three cardinal rules in labeling waves:
Rule Number 1: Wave 3 can NEVER be the shortest impulse wave
Rule Number 2: Wave 2 can NEVER go beyond the start of Wave
1
Rule Number 3: Wave 4 can NEVER cross in the same price area
as Wave 1
If you look hard enough at a chart, you’ll see that the
market really does move in waves.Because the market never moves in text book
perfect fashion, it will take many, many hours of practice analyzing waves
before you start to get comfortable with Elliott waves. Stay diligent and never
give up!
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