Oct 212008
 

Traders often lose money when trying to squeeze additional profits during a complex correction. Wave theory is quite clear. Corrections tend to alternate between simple and complex patterns. Also, the market tends to correct a prior impulse wave both in time and price. Put another way, this means if we have come down too quickly, then we have to allow for some corrections to take extra time before continuing the trend. With these guidelines in mind, you should look at the accompanying two charts of the Australian Dollar.

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