Elliott divided them into impulsive and corrective waves, and the rule goes that traders use numbers to count impulsive waves and letters for corrective ones.

According to Elliott, an impulsive wave is a five-wave structure, and a corrective wave a three-wave pattern. They both form an Elliott cycle with the following structure: 1-2-3-4-5-a-b-c.

We can say with certainty that this week will rank for the crucial week in FX trading for 2018. So many fundamental events, so critical, and so influential, that the market’s reaction wasn't supposed to disappoint. And, it didn’t.

The economic calendar told us that the Fed on Wednesday was supposed to hike the interest rate on the USD yet again. However, the ECB followed the next day, holding a press conference too.

For those that do not know, the USD is the world’s reserve currency, and the Euro currency is the second most traded currency in the Forex dashboard. Hence, key events, one following another, with little or no clues about what the central banks will do.

To correct this, traders did know in advance that the Fed will hike again. The remaining question was how many more hikes would it signal in its statement?

Interested to know how? Read on.

Here is a list of 5 effective trading techniques to be more profitable:

If this describes you, don’t worry; it’s still not too late to get financially savvy. Here are some ways you can invest your money wisely.

Central banking in the 21st century faces challenges not known before. Controlling inflation and economic growth using interest rates cuts or hikes isn’t enough anymore.

Bankers around the world agree that healthy economic growth requires moderate inflation. As such, the official mandate of a modern central bank targets inflation below or close to two percent.
When inflation deviates from the target, central banks act. Higher inflation triggers rate hikes, while lower inflation ignites rate cuts.

In a dual process called market easing or tightening, central banks change the interest rate level to tackle inflation. Basically, all the monetary policy tools are used to bring inflation to target.

However, this has been a challenging process lately. Capitalism, as we know it, posses specific situations in different parts of the world.

The same recipe to fix inflation challenges in one country, may not work in another. As such, central banks use different monetary tools to stimulate economic growth.

We talked about ESMA regulation to limit financial leverage on forex and CFD products for EU-regulated brokers.