Hold onto your hats – the FTSE is plummeting

The FTSE 100 has fallen hard as forecast, says John C Burford. Elliott wave theory holds a clue as to where the index is heading next.

One of the terrific benefits of using the Elliott wave model is that when you believe you have identified the correct wave count and latched on to the start of a third wave, the market must give you immediate confirmation. In other words, the market must move sharply without delay in the direction you have forecast.

Third waves are usually the longest and strongest wave in a motive five-wave sequence where counter-trend moves are brief and shallow. As the market progresses along a third wave, it is increasingly obvious you have caught a big one to your delight!

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.