$EURUSD Elliott wave analysis of the week. October 16, 2009

I started to think Elliott Wave is especially flexible and powerful in

short term trading, as we often have to stop, erase the old and

no-longer-valid counting, and re-count. It takes so much time in the

mid to long term investment before the wave count is proven right or

long, and we cannot take advantage of the law of large numbers in

one's life time.

 

I was watching EURUSD price action towards the end of the week, and

virtually nothing happened, and the price was in the rage of 1.4840

and 1.4970. If it had broken lower, I would have kept my bearish

stance, but now that it in the range, it may be that we are in 4th

wave of some degree.

 

So, this chart is my re-counting with bullish bets.

 

I am still in the conservative mode after my careless short position

move costed 4.28% of my capital. So I will wait long enough for this

potential 4th wave to be over, and new trend up is confirmed before

placing any bets.

Done