Spotting an easy 100 pip profit in Forex using Elliott Wave Analysis

This is another example of a trade that I recommended to a member who chose the consulting option. As you know, WaveTimes readers and members come from every corner of the world, and have interest in a variety of markets. This lady is an active trader in the AUD/NZD cross. The following charts were sent to her yesterday, before the moves unfolded precisely as anticipated. It is important to know that sound analysis is only one half of what makes a successful trade. The ability to consider what could go wrong, and the willingness to take the plunge when the time and levels are right, as well as the fortitude to hold on to the position till one is stopped or the profit target is reached constitute the other half. Truth be told, the share of the two parts is more like 30-70, and not 50-50. So let us now take a look at the following charts and see if you can learn again from the experience.

The Australian Dollar versus New Zealand Dollar is an actively traded cross across the Far East. In the first chart below, you can see that we start our count from a significant low. Wave 2 has come down to the 70.7% retracement level of wave 1. In Elliott Wave analysis, wave 2 can go all the way down to up to but no more than 100% of wave 1. These rules and associated Elliott Wave guidelines have been well explained in my Elliott Wave book Five Waves to Financial Freedom. You can get your copy from for under $10.




AUDNZD 28Feb17a


Here is a discussion of wave 3. You can see how I am making the case that the rally to a new high after the first move down from the wave 3 top is NOT the fifth wave, rather it is more likely to be an irregular B wave top of a complex correction.


AUDNZD 28Feb17b


I have then discussed how to figure out the possible end points for the C wave of the irregular fourth wave.


AUDNZD 28Feb17c


In the next chart, the targets discussed earlier are shown clearly labeled. In my opinion, when a trader is given the reason for a particular course of action, there is a lot more credibility. Members of the premium service not only get guidance on what the waves are indicating, but also get a chance to learn in real time. You can see that my views are stated clearly in the green font on the chart below. There are other times when I tell my clients that I don’t have a clue what will happen next, and it is best for them NOT to get involved. That is also valuable advice. Far too often, traders want to be involved because they feel that they are missing out on the action. That is not how I operate. We get involved when there is a low-risk opportunity, where the rewards are significant. At other times, we are content to sit wand watch. (By the way, I am off on a 3-week holiday starting this week end. I will be traveling to many cities in Australia and New Zealand, and if possible, I’d love the chance to have coffee with some of you down there!)


AUDNZD 28Feb17d


Here, I am delving a bit deeper to see of we can make sense of the third wave by itself. Every bit of additional clue is valuable. After all, this is not a trivial exercise. We are speaking of real money.

AUDNZD 28Feb17e


Here comes the crucial part, the weighing of different outcomes and deciding WHERE we should enter the market. You can see that I am NOT ashamed to say that I could be wrong. What is important to my members is not whether I am right or wrong, but whether we are making the right trading decision. If you go back to the home page of, and read the various pages, you will see that I have been faithful to this theme everywhere.

AUDNZD 28Feb17f


Finally, the recommendation.

AUDNZD 28Feb17g

And what do you think happened?

AUDNZD 28Feb17a


  • Malik Imran

    Nice analysis..


    Good Morning Sir,
    Does Elliot wave work on 1 min time frame as good as on 1 hour time frame ? As a trader we need more trade to make money and 1 hour take much time to unfold the waves and we are trade on 3rd wave .
    so please guide me 1 min time frame is good to trade on a daily basis? So we catch maximum trades.

    • Ramki Ramakrishnan

      Bharat Kumar, As explained in my book FWTFF, Elliott Wave Principle works in ALL time frames. But I suspect that anyone trying to generate more trades is taking a short-cut to disaster. If you focus mostly on 1-minute chart, it is just a matter of time before you retire from the markets. So be very careful.

  • Bharath

    Hello sir, I read again your book FWTFF . I need one clarification.
    In a flat correction ABC pattern and sub-waves of A (abc), B(abc) and C(12345)
    Sir what waves inside Tiny abc . Is it 5,3,5 or 3,3,5 or just consider as “abc” without counting inside abc.

    • Ramki Ramakrishnan

      Bharath, In a FLAT A which is made up of three sub waves a,b,c, you could have either a tiny 3-3-5 =a , or a 5-3-5 = a. If the former, then, the tiny c will be ending just below the bottom of tiny ‘a’ to complete sub wave A. If the latter, then tiny ‘c’ will end well below the bottom of tiny wave ‘a’. Irrespective of which of these two outcomes is seen, sub wave B and sub wave C are always 3-3-5 and 5-3-5-3-5.


    Sir, Very Nice. I understand now, the structure of ABC and abc both is same . problem is sometimes just abc of A is completed and I give them to label as ABC.So how to manage it.

    • Ramki Ramakrishnan

      Bharath, Have you considered enrolling in my online program? You will appreciate that it is not possible to explain this in more detail via a back-and-forth response in a blog! There are over 12 hours of video recordings in that course, a hitherto unmatched collection of case studies in a single online program that teaches you everything you need to know.


    No sir I have not purchased. “How To Profit From Elliott Waves” Amount is 12500 Rs but I know it is valuable, I will purchase soon.

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