Update a current Zero-Wave of EUR/USD.
Zero-Wave or 0-Wave or trial wave is a part of a chart in which beginning point = ending point - A parabolic shape.
This could be by extreme emotions, and the market could come back its balance.
It appears in patterns as double, triple, bottom or top before It's change the trend of the market.
It also affects to count Elliott Waves-EW that traders follow pure theory of EW can't accept. A randomness are generating EW, but extreme emotions of traders make its shape. We should remove the extreme randomness in our calculations to have results better.
E/U's peak at 05/04/11 is 1.49374. It didn't reach to 1.49723 (5-ew at 15m-chart). Their differences are 37 pips!. It was degenerated into a 0-wave or a trial wave. Here, the beginning point of EW at 15m-chart is at 1.4505 and price chart came back the point at 5/5/11.
It's explained as a error of theory ( a randomness). Any theory gives results with a certain error degree. It couldn't have results with exactly degree 100%.
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|As an EUR/USD analysis "..It's also developping 3-EW at 1h-chart. Its 3-EW's target is at 1.49723. If 4-EW finishes at around 1.48323 then, its 5-EW's target at 1h-chart is at 1.52807..." It also was degenerated in to a 0-wave.|| |
Application Of 0-Wave.
We remove 0-wave and caculate EW back of the new chart that has removed the 0-wave.
I have been using 0-Wave in calculate EW. For example, I analyzed AUD/USD at Monthly chart at 11/04/10 as chart|
Look at AUD/USD's chart, you could see its high was at 1.10153 on 05/02/11 !.
0-Wave has origin from news
0-Wave has origin from breaking the local symmetry...