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SignalKING 588.78% $47,635.66 17378 47.6% 316 270 Invest
SignalGold 192.51% $9,625.48 667 59.37% 38 238 Invest
SignalMAX 523.59% $76,046.14 12184 69.74% 169 209 Invest

FOREX Wave Analysis! Trading and Sea. Are They a Like?

FOREX Wave Analysis! Trading and Sea. Are They a Like?

Technical analysis is the most popular at Forex. In contrast to fundamental one, it doesn't require specific knowledge at economics, ability to compare different factors such as inflation, consumer price index, GDP, sales, etc.

That's why technical analysis is usually considered the simplest and recommended for new traders.

We are to look into one of technical analyses - forex wave analysis. You'll discover Elliott's wave theory and learn several rules letting you trade successfully.


1.Why Non-Indicator Systems?
2.The Wave Theory
3.Elliott's Forex Wave Analysis
4.Wave Analysis Figures
5.Tips For a Trader

Why Non-Indicator Systems?

I must mention that wave forecasting is one of so-called "non-indicator strategies", so you don't use any terminal indicators while trading. Default figures (straight line, trend line etc.) are all you need. But don't forget about good sight - you should pick out differed figures from plenty of candlesticks and bars.

The key advantage of non-indicator trading systems is your independence from computer algorithms which are frequently wrong. MT4, along with MT5, has no indicators giving more than 75% successful deals. That's because they're uploaded by brokers not interested in your profit. I cannot say it's impossible to earn with indicators, but right-way non-indicator trading is more comfortable and profitable.

You should be quite experienced for such trading, otherwise you won't mark the right movement. Currency movements doesn't look straight - it's disordered and has subtle direction.

If you can't search for this very direction and pick out the drawbacks - you will suffer losses for sure. From this point of view, trading with indicators seems to be easier, nevertheless it's not that profitable. Tip: if you've decided to trade without indicators, like a pro, use demo-account for a couple of months. Thus, you'll get tough in graph analyzing. After that, start working with real deposit.Forex-Wave-Analysis-2

The Wave Theory!

This theory says that any market, including forex is behaving according to wave law. There is the main direction, but also «drawbacks» - opposite directions.

Surely, waves following the trend are bigger than those which oppose it. That's why major profit is gained from trend waves.


Elliott's Forex Wave Analysis!

So, how do traders work and analyze forex with means of the wave law?
Dropping theory, there are two kinds of waves at the exchange.
Impulse wave is the movement directed toward the trend; correction wave is the movement directed opposed to the trend.

You can see both these kinds in pictures of this article. Impulse and correction movements are periodical and change each other. Trader's main objective is to identify a correction wave, place a bet and gain profits from an impulse.
Some traders work either with impulses and corrections.

Here's the approximate step-by-step instruction for a trader:

  1. Trend defining. There one must get the direction of rate and which waves can be considered as impulse ones and which - as of correction.
  2. Following correction awaiting. Beware of hurrying while placing a bet. Wait some to be sure the correction wave's over and the impulse comes.
  3. Opening the order - starting a deal.
  4. Closing the order once the impulse is over and the new correction begins.

If you'd love to know more about forex wave analysis, you have to drill fair amount of materials, including Elliott's works.Forex-Wave-Analysis-4

Wave Analysis Figures!

Most traders use differed figures for convenient trading. Today there is plenty if them and they can be easily studied on the Net. Zigzag is more widespread than others.

Tips for a Trader!

  1. If you trade using technical analysis, then do not break your strategy rules. Once the algorithm chosen and checked for efficiency, profit approximately estimated, then get stuck to the instruction and never deviate from it. Otherwise, you'll lose your money. If you eager to make an unusual turn, it's likely to be of emotions which lead to losses in 95%. If you meet a weird market situation, conflicting with your strategy, do not deal with it. Then, you always can look into that strangeness, but do not engage experiments while trading.
  2. Lately, lots of trading robots emerge. Their developers promise you awesome profit without any involvement by you. They can probably work with strategies of indicators, but if you decide to engage it with non-indicator strategies, you will lose your money before swearing. Not an algorithm can visually define the direction of trend, because traditional logics is human's essential aspect only.
  3. In the first point I told you should not change rules of the strategy. But it applies to very trading period. When you are not trading, it's essential for you to analyze your orders and improve the trading system. Though you don't have to adjust the algorithm very frequently, it's sometimes needed just to correlate with changing market laws. Besides, improving your strategy, you'll be able to raise profit that is important for a successful trader.Forex-Wave-Analysis-5
  4. I often mention that emotions are trader's faults. You should bridle them. If you don't manage your fear, fury, panic, confidence and carelessness, you will never become a prosperous trader. Keep in mind: 95% of all traders lose their deposits because of emotions. Do not become one among them!


For the conclusion, forex wave theory is one of the simplest non-indicator system. If you are a novice at the exchange and want to get experienced, I recommend to choose this strategy, and after that discover other more profitable and complicated ones.

Anyway, I wish you good profits and all the success in trading!

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