Earlier this week, the Federal Reserve came out of the closet to dazzle us with their brilliant minds. All eyes (and ears) were on their response to the economy and monetary policy. Should the Fed be guiding your investment decisions? If not, then who (or what)?
Elliott Wave Theory as a Roadmap
For the past several weeks, we have offered forecasts and predictions on several market days and weeks before the Fed crawled up out of their hole. These forecasts and predictions were made using Elliott Wave Theory.
I find Elliott Wave extremely useful because it describes the market for me. That description isn’t just what happened in the past, but what future outcomes are likely to be.
Elliott Wave Theory is like a GPS system. If I plug in Grandma’s address into the GPS, the computer will tell me the route, where to turn left, where to turn right, and how long it will take me to get there. Elliott Wave operates in a similar fashion, but with a little twist.
With GPS, the satellites communicate with your phone to identify your current location which they can quickly determine the route. With Elliott Wave, we need to read the charts first to identify our current location.
Find Your Location, Elliott Wave Determines the Route
Once we have identified our location correctly, then Elliott Wave will identify the route.
The challenging aspect of Elliott Wave is the human analysis of our current location. It is not easy, but the market does give us a lot of clues to mix together and unpack.
The good news is that you can learn how to read the clues the market provides to determine the current location. As a part of the Elliott Wave course, we teach the waves and the nuanced clues the market frequently provides to help you read the market.
Additionally, you are STRONGLY encouraged to practice labeling the markets with direct feedback from me, a Certified Elliott Wave Analyst Master. There is no faster way to learn than by doing, but with a coach watching over your shoulder.
Also, you have access to our community of like-minded traders. Together we look for clues and help each other see the waves more clearly.
You see, once the current location is identified, the route to the destination gets a lot easier because Elliott Wave Theory clearly provides the roadmap.
Learn to See the Waves. Join our Elliott Wave course now.
Recent Predictions Using Elliott Wave
Below are recent analyses made of several markets long before the Fed spoke. Feel free to check out the source analysis.
Bitcoin
Bitcoin (August 25, 2021) – While trading near $47k, here were a couple of predictions:
- The market is getting ready to correct back into the mid 30’s ($35-36k).
- Don’t buy these highs, wait for dips to position to the long side.
What we know now in Bitcoin
Bitcoin traded higher from $47k up to $53k on September 7, then crashed 25% over the next three weeks reaching a low of $39,573.
Cardano – A Large Cryptocurrency
Cardano (August 30, 2021) – While trading near $2.80, here were a couple of predictions:
- One alternate count we are watching is a completed impulse from the triangle low (from July 20). This implies a correction back to the previous fourth wave (near $1.87) and possibly to $1.50. Prices would need to fall apart soon if this was the case.
- A move down to the mid 1’s would simply be a large wave 2. This implies a larger rally up to $7 or $8 range.
What we know now in Cardano
Cardano topped two days later on September 2 at $3.10. It has fallen 40% to reach a low so far at $1.91…right at the previous fourth wave target.
EURUSD – The largest FX Market
EURUSD (September 3, 2021) – While trading at 1.1885, there were a couple of predictions:
- This could be a completed impulse wave at today’s high, just a few hours ago and therefore we’ll look for a retracement back to the 38% (1.1815), 61% (1.1757) or 78% (1.1715) level.
- After this partial retracement lower, it will be a good opportunity to reload for a new trend higher that could reach 1.20 or 1.2150
What we know now with EURUSD
Turns out September 3 was the high and EURUSD traded lower continuously reaching a low of 1.1683 on September 22. If there is any bullish juice in EURUSD, it will need to show its face immediately.
Spotting Trends and Surfing Wave Course
In our Elliott Wave course, we teach the basic patterns and how to identify them on your own chart. You’ll also receive direct feedback on your charts from me plus access to our Elliott Wave community.
There is a 30-day money-back guarantee so go ahead and give it a try.
If you have questions about the course, feel free to reach out via the contact page.