{"id":20001,"date":"2011-03-08T12:40:35","date_gmt":"2011-03-08T17:40:35","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=20001"},"modified":"2011-03-08T12:40:35","modified_gmt":"2011-03-08T17:40:35","slug":"big-advantages-of-trading-with-the-wave-principle","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/03\/08\/big-advantages-of-trading-with-the-wave-principle\/","title":{"rendered":"Big Advantages of Trading with the Wave Principle"},"content":{"rendered":"

Plus: Discover Where to Place “Protective Stops” <\/span> <\/span><\/h3>\n

By Elliott Wave International<\/span><\/h3>\n

What advantages does the Wave Principle offer to traders?<\/p>\n

Here’s one of the big advantages of using the Wave Principle when trading: you can increase your understanding of how current price action<\/em> relates to the market’s larger trend<\/em>.<\/p>\n

Other tools fall short in this regard. Several trend-following indicators such as oscillators and sentiment measures have their strong points, yet they generally fail to reveal the maturity <\/strong>of a trend. Moreover, these technical approaches to trading are not as useful in establishing price targets<\/strong> as the Wave Principle.<\/p>\n

Here’s another big advantage of using the Wave Principle in your trading, which comes directly from the free eBook “How the Wave Principle Can Improve Your Trading”<\/em> –<\/p>\n

“Technical studies can pick out many trading opportunities, but the Wave Principle helps traders discern which ones have the highest probability of being successful.”<\/em><\/p><\/blockquote>\n

Indeed, this valuable free eBook shows you how to identify and exploit the market’s price pattern, as shown in the Elliott wave structure below:<\/p>\n

\"\"<\/p>\n

The Wave Principle also helps you to identify price levels where you may want to place protective stops.<\/p>\n

“…although the Wave Principle is highly regarded as an analytical tool, many traders abandon it when they trade in real-time — mainly because they don’t think it provides the defined rules and guidelines of a typical trading system.<\/em><\/p>\n

But not so fast — although the Wave Principle isn’t a trading “system,” its built-in rules do show you where to place protective stops in real-time trading<\/em>.”
\n“How the Wave Principle Can Improve Your Trading”<\/em><\/p><\/blockquote>\n

Before you attempt to identify price levels for protective or trailing stops, you should first become familiar with these three rules of the Wave Principle:<\/p>\n