All You Need To Know About Elliot Wave Theory

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Elliot Wave Theory

The Elliot wave theory principle is a technical analysis that is used by traders to analyze a financial market cycle and it forecasts a market trend by identifying anything extreme in lows and highs in prices, investor psychology, and other factors. This theory was conceptualized by Nelson Elliot, a professional accountant in the 1930s. According to him, the market prices unfold in particular patterns that are called by practitioners as Elliot waves or waves. He concluded that stock market movement can be predicted by identifying and observing the repetitive wave patterns. Elliot analyzed markets in larger depth by making a detailed market prediction and identifying particular characteristics based on the patterns.

More than thirty years ago, Glenn Neeley read about this principle and launched his commitment to advance the concept of Elliot theory with an objective to improve Wave analysis, trading, and forecasting. For the majority portion, Elliot wave is based completely on intuition but GlennNeely’s analysis techniques provide a scientific, logical, and objective approach towards wave forecasting- an approach that can give more accurate forecasts. His trading technology can help to create low-risk trading strategies thereby putting stress on capital preservation. His famous Neowave forecasting method provides a step-by-step, precise, and logical assessment of a market structure that gives accurate forecasts.

Guide to online stock trading

It is important that you educate yourself before you go for an investment strategy. One basic principle of investing for beginners is that opportunity and risk go together. They decrease or increase with one another. Investments that have higher potential profit have higher risk levels. Similarly, investments that have a lower return on investment offer less risk and higher security. Due to the relation between potential return and risk, investors should consider their risk carefully when they select investments. You should think about personal investment goals. An investor who wants to earn a second income will have a different investment choice compared to an investor who wants to earn a little interest to protect from inflation.

To analyze investments, investors usually fall under one of the two categories- those who make decisions based on fundamental analysis and those who make decisions based on technical analysis. Fundamental analysis is the analysis based on reports or economic data. Apart from the Product Price Index and GDP, fundamental investors evaluate stocks based on information present in the financial reports of a company. Many investors rely a lot on technical analysis to make investment decisions. Here, security is evaluated based on company information but on trading action or price in the market.

Choose a stock trading service provider

Whether you are a beginner or you are a seasoned expert who wants to manage the investment, it is vital that you opt for an expert stock trading service provider such as Neowave, formulated by Glenn Neeley. This trading service put a lot of focus on capital preservation and effective trade and provides a lot of specificity and detail. You will not need any guesswork. Moreover, you do not have to spend the time to analyze the markets. This service provider does this work, and you just have to update yourself.