The foreign exchange market has a feature that makes it a bit special. It continues to oscillate throughout the trading session (as long as possible throughout the trading cycle); in other words it has waves. You can easily see this role by looking at any forex chart that is easy to get from the internet. As the clock ticks, the price of different currency pairs will oscillate in a specific pattern. There seems to be a special kind of repetitive behavior. You will feel that you can almost guess the next oscillation, or at least what you think of in the first oscillation. That kind of oscillating impression. You can't help but think of the possible uses hidden behind the oscillations that may make forex trading easier.
You should know that you are not the only foreign exchange trader who wants to use these fluctuations as a more profitable forex trading tool. There were many other people before you, but one person really discovered that others just wanted or his name was a useful tool for Ralph Nelson Eliot, and he also observed a strong trend in the market. It seems that all different time frames are followed by repeating patterns. After analyzing the large number of charts that he discovered in the late 1920s, the market moved in a repetitive manner, away from completely chaotic behavior. In other words, he found that he can predict the next wave of the market very accurately by using his recently created analysis.
He found what is now known as the Elliot Wave. These waves are based on his findings and show that the volatility patterns in the market have fractal characteristics. This means that patterns not only repeat over time, but also feature waveforms will repeat on different scales (days, hours, minutes) for a specific period of time.
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Orignal From: Foreign Exchange Mediation Model and Elliot Waves
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