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Forex Elliot Wave Strategy

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According to the Elliot Wave Theory, all events in markets are cyclical and subject to certain laws.

In his theory, Elliot argues that the behavior of the crowd is always undulating.

This is determined by the existence of eight waves that consistently and eventually fit into cycles.

Created on the basis of Elliott’s waves, the Elliot Wave Oscillator indicator shows the force of the momentum on which the price moves.

In other words, the Elliot Wave Oscillator gives you the opportunity to count waves as they are still developing, giving you an edge in predicting the next move.

The Elliott Wave Forex trading strategy is a trend and indicator-based strategy that provides entry signals based on a set of indicators.

The Stop Loss, Take Profit and Trailing Stop settings are given for the EUR/USD pair, and are hence, best to use with that specific pair.

If you decide to use a different currency pair, the parameters must be selected and adjusted individually.


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Input Parameters:


  • Any currency pair, although the recommended one is EUR/USD;
  • M30 timeframe;
  • Any preferable trading session and time;
  • Trend and indicator-based strategy.

Used Indicators:


  • Exponential moving average EMA (200), apply to close, blue color;
  • Exponential moving average EMA (50), apply to close, red color;
  • Elliott Wave Oscillator;
  • Juice indicator with a level of 0.0004.

Conditions for Entering a Long Position:


  • The price is above the 2 moving averages EMA (200) and EMA (50), with an uptrend trend, as indicated by the bullish crossing of the averages, red being above blue;
  • The Elliott Wave Oscillator has crossed its zero line and closed above it;
  • The Juice indicator is above the level 0.0004;
  • Take Profit is set at a value of 100 points from the entrance to the market;
  • The Stop Loss is set at 20 points, the same goes for the Trailing Stop.

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Conditions for Entering a Short Position:


  • The price is below the 2 moving averages EMA (200) and EMA (50), while the trend is directed downwards, as indicated by the bearish crossing, red being below blue;
  • The Elliott Wave Oscillator has crossed its zero line and closed below it;
  • The Juice indicator is above the level 0.0004;
  • Take profit is set at a value of 100 points from the entrance to the market;
  • Stop loss, respectively — 20 points, trailing stop — 20 points.

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Waves and trends are the name of the game as a trader, and trends are your friends. Keep in mind though, that not all trends are created equal.

Real-time identification is a complex matter, and many traders give up on using this indicator without realizing its true potential.

Learning to identify wave patterns that work best for you is key to succeeding with this strategy, so don’t abandon it without actually bothering to commit to it.

While the Elliott Wave forex strategy can be used independently, improving its optimization by introducing new indicators and filters can significantly increase its effectiveness.

The whole theory can be a monster of a subject in of itself, but do not back down because of this. Slow and steady wins the race.

Take your time to get comfortable with trading on impulse waves, and of course, don’t forget about risk management.

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