Elliot Wave Theory - Forex Trading With Elliot Wave By Samuel Leslie Berkovits

There are many scientific theories of market movement and they put forward the idea that as human nature is constant, it conforms to a law. Know the law and you predict forex price movement in advance. Elliot Wave theory is one of the most famous of these theories; let's look now at how successful it is... Elliot Wave is one of those theories that traders love and it's very clever - but the logic it's based on is ridiculous. Let's take the definition of a scientific law. If it is scientific, it should tell you exactly what to do and be totally objective - that's the definition of a scinetific law, just like all those scientifc equations you learned at high school. These equations give the equation to follow and the end result is alwayts the same. Does Elliot Wave theory do this? No, so it cannot be scientific by definition. It's totally subjective with lots of peaks and troughs in any time period you like. If there is a law of human behaviour the theory should just tell you what to do! The other obvious flaw with it as a scientific theory is: If there were one (and there isn't) there would be no market, as we would all know the price in advance! This you would have thought is common sense but Elliot Wave has a large devoted following (despite the fact he didn't make any real money with his theory) who think it's the solution to finding the future. This theory is similar to the ones of Gann and Fibonacci and there not scientific either. Anyone who thinks these theories are, has not looked at the facts, or thought about the logic. Human nature is constant and we are governed by greed and fear but were all also different and individual and this vast mass doesn't conform to an exact scientific theory, this is what makes trading the challenge it is. If you are trading forex or any other free market, you are involved in a game of odds NOT a game of certainties. This doesn't mean you can't win, you can - but you need to be realistic and not a dreamer. Leave Elliot wave to the far out crowd and the dreamers and get yourself a system, which trades the odds and a good place to start is with a study of Dow Theory. We will look at in the next article in this series. Traders are always looking for ways to beat the market but you can't so don't try. Get an odds based system and trade the odds. Sure, you won't win every time but that won't stop you making a lot of money and enjoying currency trading success. FREE FOREX STARTER PACK 5 X PDFS - DAILY RESEARCH AND MUCH MORE! For free infopack and free research and more get your 5 x FREE Forex PDFS visit our website at: http://www.learncurrencytradingonline.com Article Source: http://EzineArticles.com/?expert=Samuel_Leslie_Berkovits