This is part 8 of the series.
In this video, you will learn about Elliott Wave Theory. Traders use this theory in technical analysis to analyze price action in the form of waves. A trend can be divided into two main sections. They are an impulse movement and a correction.
The impulse moves are represented by price moves in the direction of the main trend. The correction moves are waves moving in the opposite direction. The impulse move consists of five waves and the correction move consists of three waves.
A wave is seen as a fractal structure containing shorter waves within. Identifying trends is very important in forex trading. Hence, you can look for potential pullbacks, and trade in the direction of the trend, and obtain a good risk to reward ratio.