Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Where is the Euro Headed?

Currencies / Euro Mar 07, 2012 - 10:16 AM GMT

By: Submissions

Currencies

Best Financial Markets Analysis ArticleMarc Horn writes: The Euro composite started as a basket index and then became the Euro Index and is pretty much as close to textbook of Andrews pitchforks. When combined with MAP waves, an alternative wave counting method base on many principles of Elliot waves, it gives good results as to approximately where the market will move.


Primary pivots can be seen clearly below using a long simple moving.  It is obvious that even though there has been a change in trend that occurred in 08 this trend is not yet clear some 3 years later other than it looks like it might be rolling over.

So from an investment view we have missed the big boat, or at least a large part of it but there are many more smaller boats we can ride.

MAP Waves are based on the following rules:

1 >= 0 / 2 >= 0 / 3 >= 1 / 4 >= 2 / 5 >= 3.

0 is the starting pivot on each time scale, and is a pivot from the next larger scale, and pivot 5 is a pivot of the next larger scale, which follows the same rules. The same rules apply for down waves in reverse, with the exception of occasional 3 wave corrections. This is where MAP waves differ substantially from Elliot Waves (EW), which use a process of endless corrections with numerous changes depending on how the correction develops, so can go on for years! Some EW specialists have corrections going back to 2000 if they choose that as the top and some even have corrections with higher tops! On its own EW is a good retrospective tool for confirmation, but not very predictive!

MAP waves overcome this, and, when combined with Andrews pitchforks give predictable results.

A simple example of combining Andrew’s pitchforks with MAP Waves is given using the EURO.

Basics:

ML - Median line / MLU - Median line parallel upper / MLL - Median line parallel  lower / SP - Sliding parallel / Fork with pivot number.

Fork 012 - gives you the trend on that scale as can be seen above. Also this gives an approximate limit of the extremes, and changes in trend of different timescales.

Pivot 3 has not made the MLU so the trend is decreasing, so expect pivot 5 closer to ML then pivot 3

Once pivot 3 is made make a sliding parallel - dashed line of same colour scale and slide it to pivot 3. This gives you an approximate target line for pivot 4 - the MLL.

Now draw your next fork 123 and where the SP012MLL and123ML cross is your target area for pivot 4.

Once pivot 4 is made, draw in a sliding parallel of fork 123 and slide the MLL to pivot 4, and draw in fork 234.

SP 123 gives the expected extreme of pivot 5.

012 ML and 234ML is the target area for pivot 5.

The distance from 012MLU to pivot 5 is expected to be greater than pivot 3.

Using MAP wave rules, pivot 5 is not only a monthly pivot, but also a quarterly pivot so the new trend is shown in gold, then the new trend is assumed to be pivot 345.

It is not surprising that the pivots after the 2008 high are in the approximate limits of the old trend lines.

So where do I expect it to go to?  Pivot 1 rarely makes the 345ML, and often turns at the 125ML.

But that is a long line!

So going down 1 pivot scale to the weekly pivots we can narrow it down.

It would appear that the euro is trending to be par with the US$ in early 2014!

Using this same analysis technique on the S&P, we have put in daily pivot 3, of weekly wave 5, of monthly wave -2 if the October 2007 high is a quarterly pivot. So once this correction is over my analysis says we will have one new high, which will not be seen again for many years!  Then wave 3 down will start.

© 2012 Copyright Marc Horn - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules