ElliottWave Forecast
December 23, 2020
ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 50 instruments including FX majors, Gold, Silver, Copper, Oil, Natural Gas, Soybeans, Sugar ,Corn TNX and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup videos, Educational Resources, and 24 Hour chat room where they are provided live updates and given answers to their questions. The guidance of ElliottWave-Forecast gives subscribers the wherewithal to position themselves for proper entry and exit in the Forex marketplace. We believe our disciplined methodology is pivotal for long-term success in trading.

Did you know what the meaning of term Equal Legs is?

Many times, we hear in the argot of technical analysis the term "Equal Legs", which sounds very strange and does not make sense to the world of finance. However, this term is especially important when making a forecast of the future movements of the different market instruments, because when the market reaches the equal legs, it has a high probability that the market will correct or change trend.

Looking for Equal Legs

Equal legs are simply the 100% Fibonacci extension, where wave A and wave B are taken to find a possible ending of wave C. The problem lies in correctly identifying A and B, being A and B any type of valid structure according to the Elliott Wave rules. To learn more about Elliott Wave Theory, follow this link: Elliott Wave Theory). Let's see some examples:

In this first example we can see Wheat on the weekly chart with a two years ABC structure. Upon reaching 100% Fibonacci, the market reacts downwards making a correction and then continue with the trend.

Wheat Equal Legs

In the second example we have the Australian Index weekly chart where the market reached the equal legs just before the bearish movement due to the coronavirus pandemic. It should be noted that the equal legs should not be perfect, but a close level as we have seen so far.

ASX Equal Legs

And finally, in this third example we have the GBPAUD where we see a 100% perfect extension to then continue to the downside.

GBPAUD Equal Legs

Source:  https://elliottwave-forecast.com/elliottwave/equal-legs-elliotts-wave-theory/ 

More from ElliottWave Forecast
The most important insight of the day
Get the Harvest Daily Digest newsletter.