Forex Strategy - Elliott Wave theory

What is a trend?
- A trend usually unfolds in a 5 non-overlapping wave pattern.
- A trend usually goes in the same direction of the higher degree trend.

What is a correction?
- A correction usually unfolds in an overlapping pattern and goes in the opposite
direction of the higher degree trend.

When the market overlaps it is usually a clear signal that a correction is taking
place. An overlap is when price makes a low or a high, and then reverses and
penetrates that price range of the last wave. When the market overlaps, more
often than not it is making a correction.