125 pips for the good guys on a strong move out of the wave-b triangle. I count 5 small waves up from our 153.55 long entry, which can be expected to be followed by 3 waves back down, before 5 more up in wave 3. I will be looking to bid into any 3-wave pullback towards 154.50 to get long for a potentially wild, wave-3 ride towards 157.00.

It's entertaining how quickly the markets are tossing in the towel for a re-test of the August lows due to the equity and carry trade strength in the past 48 hours. But without a framework provided by Elliott Wave and Fibonacci Theory with which to work, I can see how traders can become so easily frustrated. Elliott Wave and Fibonacci Theory provide traders the vision to anticipate the size, strength, and duration of both trending and corrective markets. What this does is allow the trader to set reasonable expectations and corresponding trade parameters by analyzing what is actually happening in the market, not what the trader wants to happen in the market. This is a very important distinction between the newer trader and the experienced trader.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.