Hi guys,
I've been studying EWs for probably 6 weeks and feel like i have a 'decent' grasp on them (i'm managing to count pretty well and my counts often match other internet poster's counts), but I have 1 nagging issue...
I can see how you can establish a solid count on indexes, because naturally they have an actionary impulse and are in an uptrend, so you have a starting point. The reason being is that the index ratio is $/share (not shares/$). The index prices started low and have steadily increased since then - this is always going to be the case.
However, i'm struggling to understand how this works with Forex pairs.
My reason being that if one currency of the pair continues to steadily appreciate over time, then the other currency will depreciate. So what is the eventual outcome of this? Does it mean that eventually the depreciating currency will go bust? Or, will there be a reversal? If so, how does a reversal fit in with the EW Principle?
Thanks for your time,
dirt.
I've been studying EWs for probably 6 weeks and feel like i have a 'decent' grasp on them (i'm managing to count pretty well and my counts often match other internet poster's counts), but I have 1 nagging issue...
I can see how you can establish a solid count on indexes, because naturally they have an actionary impulse and are in an uptrend, so you have a starting point. The reason being is that the index ratio is $/share (not shares/$). The index prices started low and have steadily increased since then - this is always going to be the case.
However, i'm struggling to understand how this works with Forex pairs.
My reason being that if one currency of the pair continues to steadily appreciate over time, then the other currency will depreciate. So what is the eventual outcome of this? Does it mean that eventually the depreciating currency will go bust? Or, will there be a reversal? If so, how does a reversal fit in with the EW Principle?
Thanks for your time,
dirt.