Reblog: How to Trade Elliott Wave for Beginners
Before we begin our discussion about how to trade Elliott Wave let’s set the stage by looking at how the Elliott Wave theory was discovered and why Elliott wave strategy is so popular today. In the 1930 R.N. Elliott set out to try to learn more about the stock market after experiencing some losses in the 1929 stock market crash.
Elliott’s discoveries were quite impressive and after careful study of the markets, he began to notice that the market has some repeatable patterns and is trading in a series of five and three waves which is what we call today an Elliott wave strategy.
Our team at Trading Strategy Guides has also adopted the Elliott Wave strategy because it offers us good Elliott Wave entry points which ultimately leads to superior risk to reward ratio.
The Elliott wave strategy is similar to a trend following strategy like the MACD Trend Following Strategy- Simple to learn Trading Strategy or the very popular strategy: How to Profit from Trading Pullbacks.
Even though the Elliott Wave strategy is a trend following strategy, we can spot Elliott Wave entry points even on the lower time frames because the Elliott Wave theory can be applied to all time frames and to all markets so, in essence, is a universal trading strategy.
Now …
Let’s get a little bit deeper into how to trade Elliott Wave and how we can make profits trading.