The currency trading market is a place where the traders get the opportunity of making larger amount of profit and they also get provisions for limiting the losses that may come their way. The traders need to make use of various methods of analysis for finding out the trends that exist in the market. For performing technical analysis, traders need to make use of various indicators like charts, moving averages, patterns and many more. Even forex news can help the traders in analysing the trends that exist in the market. Waves are one among those methods for performing technical analysis. There are various kinds of waves available in the market which can be made used for the purpose of thoroughly analysing and depicting the kind of trend that exist in the market.
Motive waves are the ones that could move along a larger trend. This kind of waves usually comprises of about five waves and these waves are named as 1 2 3 4 and 5. Motive waves are even available in various varieties depending on their nature and signals and helps in making decisions along with forex news.
Impulse and Forex News
Impulse is a kind of motive wave that moves towards the direction of the larger trend in the market. This wave is also labelled as 1 2 3 4 and 5. There are various properties associated with impulse waves. Wave 1 among the impulse waves form a pattern which is either leading diagonal or can be called as impulse. Wave 2 in this pattern usually is a corrective wave and it do not have the capability of retracing more than cent percentage that of wave 1. Wave 3 need to be impulsive wave and it should be longer when compared with wave 3 in terms of price. Wave 4 in this kind of waves is a corrective one and it should not overlap with wave 2. Wave 5 can be an impulse or it need to be ending diagonal. On considering the price, wave 5 needs to be greater than or equal to wave 4. Wave 3 need not be shorter in terms of price when compared with wave 1 and wave 5. Forex news can help the trader in gathering data and representing them in this particular format.
This is a kind of wave that also has the name diagonal triangle. This is also a wave that has about 5 waves in it which are labelled as 1 2 3 4 and 5. As it is a motive wave, it also moves towards the larger trend that exists in the market. The diagonals in this wave moves inside the two channels which are contracting in nature and formed by joining the waves 1 and 3 and also waves 2 and 4. The diagonals involved in this kind of waves are leading as well as ending diagonals. Ending diagonal are found common when compared with leading diagonals. The diagonals should move inside the two converging channels. Wave 1 need to be leading diagonal, wave 2 need to be ending diagonal, wave 3 should be leading diagonal and wave 4 should be corrective. This can be helpful along with forex news in analysing the market.
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