The Origins TERI WAVE Analysis

The Origins TERI WAVE Analysis

The Origins TERI Wave Analysis – The Origins TERI Wave Analysis – In this article, we’ll now have one of the methods of technical analysis is one of the most popular among traders – the analysis of the wave (wave analysis). Let the base and the origin of these methods described in detail. Elliott is almost the foundation of the modern science of the natural processes that are based on the principle of fractional predict …
Wave analysis and analytical discovered by the world famous writer Ralph Nelson Elliott 1871-1948. He has also authored a series of articles and books bestsellers name became “Law Nature’s – The Secret of the Universe”, which was published in 1946. In the view of Elliott, a graph of price changes in the market instruments have an wave structure.

A person is often driven by emotions, especially if he is a trader. And a strong emotional unveiled in the area of ​​human activities related to the financing, where there are two possible loss of funds and making profits. Trading commodities and stock markets may also be associated with the field. Then, from the late 70s of the last century, the Forex market them.Human emotion gradually changed from optimism to pessimism, euphoria and confidence in the future of a disappointment for the uncertainty, fear and panic in the market. Sometimes negative emotions such as anxiety and greed to check the market participants, because it could happen an unexpected change in the price of the trading instruments in the market.

Trading commodities and stock markets

Avatrade review these changes are similar to waves on the chart price fluctuations. Elliott said that there are a number of wave model (pattern). He gave special attention to the sequence of Fibonacci numbers. The main elements of the Elliott Wave Theory is the geometry and arithmetic of Fibonacci numbers. According to him, there is a clear logic specific to the spin waves, which have a chance to predict future changes in the mood of some people and to predict price changes in particular shows. The leading role in the structure of the price movement describes the five types of patterns and three types of waves improvements.

Other features of the wave and wave-models is their ability to form a large price movement and to create a model of a bigger wave with the aid of a series of simple wave similar to them. This fact shows the properties of natural fractions of a wave. Says Elliott almost predict the basis of modern science of natural processes based on the principle fractions half century. Through the use of this knowledge, allowing to identify the case, and to clearly describe the components of graphics model, the waves are repeated in the market conditions.

Elliott to call himself and his followers and describe these models, describes the relationship between them. This phenomenon was named by him as a “fundamental wave”. Currently the main wave is not science, but still trying to reach this level. And it is quite possible that the Elliott Wave Theory is a science that will be standard in the near future.However, there is a misconception that the Elliott Wave Principle can only be used for the analysis of market and price fluctuations in the trading instruments .

This belief dramatically reduce the value and prospects of the theory itself. According to Elliott, human activities and market research is just one of the parts. In addition, there are still problems with the application of the theory of Elliott caused by a large number of interchangeable terms, which arise from the book Elliott and books are among his translated by different people at different times. That’s why a lot of criticism aimed at this theory. Let’s hope that all these problems will be solved and the theory of Elliott will be spread more widely among traders.

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