In this webinar recording, we assessed a corrective pattern in Elliott Wave Theory that is a difficult one to trade, the flat.
There are three types of flat patterns:
- Irregular or expanded
We looked at each of the three idealized patterns above. Then, we used EUR/USD as a case study it is illustrated some of the guidelines used in flats.
Lastly, we discussed how to trade flats. Generally, they are a tough pattern to anticipate as they chew up more time than price. Range traders may find them especially interesting. I typically wait and try to anticipate the termination of the flat to trade as the ensuing trend could be strong.
See how Elliott Wave Theory is applied in the current environment in the main markets. Join Jeremy in the US Opening Bell webinar on Mondays here.
If you cannot make the live webinars, but wish to learn more about Elliott Wave theory, grab our beginning and advanced Elliott Wave guides here.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
Follow me on Twitter at @JWagnerFXTrader .
See Jeremy’s recent articles at his Bio Page.