Elliott Wave Theory is the method for explaining the movement of financial markets including stocks, futures, foreign exchange and cryptocurrencies. In really simplistic terms, Elliott Wave Theory explains why markets do not simply go up or down in a straight line. It suggests that during any significant movement in [...]
Elliott Wave Theory is a style of “technical analysis”. For those that need a refresher, technical analysis is the study of past volume and price movements in order to predict future ones. The crux of this style of analysis is to look for patterns in past prices … such [...]
Elliott further discovered that each wave, whether impulsive or corrective, subdivides into smaller waves and/or comprises a part of a larger wave. This allows waves to be analysed in time periods ranging from a matter of minutes to many centuries. These ‘waves within waves’ are an important consideration [...]
The Elliott Wave pattern can best be explained by considering the activity behind the waves themselves – who is causing them and why. The two major players are institutional investors and retail investors. Of course Institutional investors (e.g. mutual funds) have very large buying power and comprise the bulk [...]
Ralph Nelson Elliott was born in 1871 in Marysville, Kansas. As a professional he moved into the field of accounting and was primarily employed in executive positions amongst the top railroad companies of the time. In 1920, Elliott’s life changes when he was hired by the US Department of [...]
Basic Definition of an Option The definition of an option sounds complicated, particularly if this is the first time you’re encountering it, so don’t be too concerned if it isn’t making complete sense right away. This course will help you understand the basics of options. With that said, here [...]
How We Calculate and Report Our Track Record. This article outlines the way in which we calculate and report the performance of the EWO trade alert track record. It is also intended to help you understand the purpose of our trade alert service and how best to interpret the [...]
Option Components Options have five main standardised terms by which they are defined: Type of option (call or put) Underlying security (specific stock or index) Exercise (or strike) price Expiry date Option premium These five variables distinguish each individual option from every other available option. Each time you enter [...]
Buying a put option is a welcomed alternative to short selling a stock. Although both strategies offer traders the chance to make a profit from a decrease in a market, only buying a put does so with limited risk. A put option gives the buyer the right, but not [...]
Call options are an attractive alternative to buying the stock. The list below provides an inventory of a call’s properties. Call options give the buyer the right, but not the obligation to buy an underlying stock at the call’s strike price. In the US, each stock option typically represents [...]
