Excuse my ignorance, but what is the difference here between Fibonacci trading, and Elliot Wave Trading? Does anyone have a good explanation of the differences?

Thanks

I think Fibonacci is just straight numbers. In other words its going to happen because the numbers show that it will happen.

Elliot wave involves a little rationality. But I do believe Elliot said that he had no idea that his concept was the same as Fibonacci. So with that being said. I do believe they are like one in the same with a few minor differences.

Hi Reb,

What are the main differences about Fibonacci series and Elliot Wave?
Why do you say that Elliot Wave is more rationally?

Thanks for your help!

Karl Strauss
Department of Economy
Harvard University

To my understanding it’s the Fibonacci percentages like 38.2%, 50%, 61.8% and so on are more important when it comes to Forex trading. Forex traders can take advantage of these percentages as it is observed that the price oscillations follow Fibonacci percentages patterns very closely if not accurately. They are used as indicators for predicting support and resistance levels. As many trading software provide the use of Fibonacci percentages, the price levels or points for a particular currency pair can be easily arrived at allowing traders to predict entry or exit points in advance. Learning to use Fibonacci indicator along with other indicators will help you in improving the accuracy of your forecasts regarding the entry and exit levels for a particular trade.

Hope this helps.

fxplayer

Hi
Actualy explained this in my other posts in the same board to daine but i am explaining this for you again .The Elliott wave principle is a form of technical analysis that attempts to forecast trends in the financial markets and other collective activities. It is named after Ralph Nelson Elliott (1871–1948), an accountant who developed the concept in the 1930s: he proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves. Elliott published his views of market behavior in the book The Wave Principle (1938), in a series of articles in Financial World magazine in 1939, and most fully in his final major work, Nature’s Laws – The Secret of the Universe (1946).[1] Elliott argued that because humans are themselves rhythmical, their activities and decisions could be predicted in rhythms, too. Critics argue that the Elliott wave principle is pseudo scientific and contradicts the efficient market hypothesis.
Fibonacci numbers provide the mathematical foundation for the Elliott Wave Theory. Briefly, the Fibonacci number sequence is made by simply starting at 1and adding the previous number to arrive at the new number (i.e., 0+1=1, 1+1=2, 2+1=3, 3+2=5, 5+3=8, 8+5=13, etc.). Each of the cycles that Elliott defined are comprised of a total wave count that falls within the Fibonacci number sequence. For example, the preceding chart shows two Primary waves (an impulse wave and a corrective wave), eight intermediate waves (the 5-3 sequence shown in the second and third charts), and 34 minute waves (as labeled). The numbers 2, 8, and 34 fall within the Fibonacci numbering sequence.
Elliott Wave practitioners use their determination of the wave count in combination with the Fibonacci numbers to predict the time span and magnitude of future market moves ranging from minutes and hours to years and decades.
There is general agreement among Elliott Wave practitioners that the most recent Grand Super cycle began in 1932 and that the final fifth wave of this cycle began at the market bottom in 1982. However, there has been much disparity since 1982. Many heralded the arrival of the October 1987 crash as the end of the cycle. The strong recovery that has since followed has caused them to reevaluate their wave counts. Herein, lies the weakness of the Elliott Wave Theory--its predictive value is dependent on an accurate wave count. Determining where one wave starts and another wave ends can be extremely subjective.

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Fibonacci trading system is a technical tool available to new or experienced investors regardless of your trading time horizon or market of choice. Fibonacci analysis is a way to forecast levels of support and resistance and project price targets. It can be used to set stops as well as timing entries, however, the most valuable information is what it can tell us about risk. To get complete information about all kinds of Forex analyses with latest updates you may visit Forex Analyses Page.

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