Elliott wave analysis is useful in providing the most likely next direction, but often traders may be unsure exactly when to enter and exit based upon analysis.

If the market is predicted to move lower then obviously you would go short. If your wave count expects price to move upwards then obviously you would go long. Trying to trade against the main trend is extremely risky. The wave count should tell you what the main trend is.

Invalidation points are the most obvious place to put stops, and targets are the most obvious point at which to take profit. But this does not tell you where to enter a trade or how to add to your position.

In an effort to bridge this gap I offer the following. Please feel free to add your own comments and suggestions.

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There is a great deal of misinformation online about what ratios are correct fibonacci ratios. Some charting packages have ratios that are not correctly fibonacci ratios in their fibonacci tool kits. It is very easy to get confused and end up using ratios and calling them fibonacci ratios when mathematically they are not, as I myself have done. Even wikipedia has a current entry which is mathematically incorrect (should that not be a surprise?).

So in the interests of clarity and mathematical accuracy, this article will explain what is a fibonacci ratio and how it is derived.

From a purely mathematical perspective the Fibonacci sequence is “seeded” by 0 and 1 and the subsequent numbers in the sequence by adding the previous two numbers

f_(n+1) = f_n + f_(n-1)

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Dear Members and Readers,

We have finally, after much testing, installed an affiliate scheme to the site. If you would like to get your regular monthly subscription for free now you can.

To become an affiliate find the big red “Affiliate Program” button on the sidebar towards the bottom. Click on this and fill out the form. Once you’re in you will need to pick up a link to drop about the place.

Dropping links is easy. If you participate in forums or discussion boards and you mention Elliott Wave Forex use your affiliate link. It’s probably best to be upfront and honest and say you are a subscriber of the service and the link includes an affiliate code. Or, if you’re not a subscriber, to divulge that the link includes an affiliate code.

If you are a subscriber of the service remember that members only charts and analysis should not be released. You should find plenty of material added fresh each week in the affiliate section for promotion. If you are unsure of what information you can use please check using the contact form on this site.

There are a few banners to get started and I’ll be adding short articles for affiliates to use in content marketing. Articles can also be modified to email if you have a list.

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