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Forex Trading

Many forex traders look to trade scientifically using the theories of Gann, Elliot and Fibonacci to name but a few

onacci, as this is not a financial theory at all but was devised to solve a problem to do with copulation of rabbits in the 12th century!

So why don't they work?

The answer is obvious:

If there was a scientific theory for market movement we would all know the price in advance and their would be no market! A market moves due to the difference of opinions and is unpredictable.

This really is common sense and trading is really an odds game not a scientific theory but the far out investment crowd can't get enough of these theories and buy into them.

Of course there is another problem with these theories which is never mentioned:

If a theory is scientific then it should be objective and tell you exactly what to do as it is following the law of the market. Check out Elliot wave, it's supposed to be objective but it's totally subjective!

It's a scientific law and you have to decide which way prices are going -does that sound scientific to you?

Fibonacci levels are great though, you get specific retracements
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3.22 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."