Breakthrough Strategies for Predicting Any Market: Charting Elliott Wave, Lucas, Fibonacci, Gann, and Time for Profit, 2nd Edition

CHAPTER 9

Forex

Everything goes in cycles. One of the greatest eras for the stock market was obviously the bull market from 1982 to 2000. I wouldn’t say we will never see such an era of excitement for stocks ever again, but history has shown us the mania for stocks comes every 75 years or so. While we had a bull market for stocks that ended in 1966, it didn’t even come close to the excitement of the 1920s. Let’s just say there are many correlations between the mania for stocks in the late 1920s and the late 1990s. When the NASDAQ bubble burst, many participants were removed from the market that will never be there again.

Some of these players who escaped with their bankrolls migrated to the real estate market while others switched to precious metals. Others switched to the Forex market. While NASDAQ volume is nearly 2 billion shares a day, Forex trade averages $1.5 to $3.5 trillion per day. It is a huge market where players have easy access to any number of different currency pairs.

It is with this thought in mind that I add a chapter to this book on the Forex market. Mind you, if you need a primer on pips, spreads, or any of the other basics involved with the mechanics of the trades, this isn’t the place. There are other excellent books on the subject. Some of them suggest that following fundamentals as well as the news events are important to your success. I won’t dispute that here, but I won’t cover that material either. I will tell you the same thing I said about the stocks. ...