Patience is a Virtue in Forex Trading - Elliott Wave Analysis

4/01/2008 - Tuesday was a great example of why patience in the market is so important for most traders. When I first looked at the chart of the Dollar Index, I saw a rally that had retraced just about 61.8% of the prior decline, and the rally from the secondary low was either in five waves or close to it. [See wave c in the chart below – Ed.]

The depth of the retracement warned that a correction might be nearing an end, and the structure of the advance warned that a top of some sort was imminent. And that was the warning I issued [to subscribers - Ed.] I felt that it was just too late for most to participate to the upside. The next "play" would be to the downside, and I was waiting for the evidence that the top was actually in place. 

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