How Elliott Waves enabled us to anticipate multiple turning points in GBPUSD

Elliott Waves are incredibly useful while trading the financial markets. In today’s post, I am going to show you how Elliott waves enabled us to anticipate multiple turning points in GBPUSD, one of the most traded currency pairs in the FX or Forex markets. It is now 20 minutes past 9 am in Chicago, (where I have come for a few weeks), and when I opened my Reuters screen, the first headlines I read was Hedge Fund Boss Odey says the Sterling Pound GBPUSD could continue to fall further before Brexit. And then I thought to myself, well, the members of WaveTimes knew the Pound was going to fall, back in February. In the first image below I give you a screenshot of that story and then continue to give you a link to the Elliott Waves analysis that I had sent to a members who asked for consulting on GBPUSD back in February 2018. You can then see how Elliott Waves give us an credible edge in trading, whether it be in FX markets such as the GBPUSD or any other liquid instrument such as stocks and commodities.

GBPUSD headlines today
GBPUSD headlines today

Further down is the link for the Elliott Wave analysis of GBPUSD dated 13 February 2018. Note that the Pound Sterling was trading on that day at 1.3883. The Elliott Waves analysis anticipated that we will likely get a dip to between 1.3763 and 1.3711 and then recover slowly to 1.4386 to complete a bull cycle. The analysis went further to state that we will likely decline from 1.4386 to 1.3024, although this could all take a few months. Incredible as it seems now, the GBPUSD made a low of 1.3710 on 1 March 2018, and then rallied to a high of 1.4376 on 17 April 2018. That was the top! We dipped to a low of 1.3048 on 28 June 2018, recovered to 1.3362 by 9 July and then fell again. The low as of now is 1.2840.

So you can see the power of Elliott Waves in action. You will see from the analysis presented below that I have used exactly the same techniques that is taught in the Elliott Wave book “Five Waves to Financial Freedom“. This blog is considered by many as a living book, an extension of what is taught in FWTFF.

The secret to success is having an edge, and knowing how to USE that edge. You can learn these techniques yourself! But if you are busy, you can always approach me for consultation as a member of the exclusive club.

Here is the link: How Elliott Waves anticipated several turning points in GBPUSD

 

 



7 Comments

  • Benjamin

    Hello Ramki:) I read your book FWTFF. Thank you for this great stuff! At the moment I got a problem with my wave count because I don’t know about a rule exactly. It’s about wave Y. I’d like to know if a wave Y can be “truncated”. I got the information that wave Y must exceed the ending point of wave W unless wave Y is a triangle. Somehow this rule doesn’t make sense to me. I hope for enlightenment…

    • Ramki Ramakrishnan

      Hello Benjamin, I don’t remember having used the notation of W, Y and Z in my book “Five Waves to Financial Freedom”. These notations are adding an unnecessary level of complexity to an already difficult subject. However, for the benefit of other readers, typically an analyst labels a triple zig zag or triple threes as waves W, Y and Z with an X wave coming between each of them. I have explained in my book that X waves can take any form, and travel an unpredictable distance, hence making it harder to trade the instrument in question. Coming to your question about whether Y wave can be truncated, first, be aware that there is NO RULE in the EW Theory covering this aspect. Secondly, with complex correction, just about anything is possible, including a truncated wave Y. This is my opinion, and you may find others who have their own interpretations.

  • Benjamin

    Thank you for this detailed statement. It helped me a lot!

  • Subhan

    Thanks Ramki for this great post, I have one question coming to my mind again and again, if I want to keep my trade simple, and only trade stocks and nothing else, then how would I do trading and beat market that happens to persist for many months and sometimes many years as well. Since we can’t short in stock trading.. or perhaps we should not trade in that at all, that’s the only way out for trading stocks. Any help on that would be deeply appreciated.

    • Ramki Ramakrishnan

      Subhan, In stock markets, sometimes the trend seems to last forever. Where you see this happening, you should pick a nearer significant low, and trade in the direction of the trend when you get the corrections of the sub waves.Good luck.

  • Aditya

    Great Analysis Ramki! I was wondering what would have been a safe short entry here. Would it be on 04/27/18 at 1.3765 when wave A of the 5th wave got broken to the downside? Also, now that we are in a downtrend since wave C started on 04/17/18, how do we know when the downtrend would end? Is it again a matter of counting 5 waves while going down? Thanks a lot!

  • Deepak

    Absolutely brilliant analysis Ramki ! got the best entry possible , and kept selling Calls . Many thanks.

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