You feature among the first traders in Mauritius to receive the distinct recognition, Certified Elliott Wave Analyst (CEWA) from Elliott Wave International and joining the elite group of technical analysts. What does this certification represent for you and for AfrAsia Bank? How has your approach to the FX market and trading evolved over the years?
CEWA epitomizes a milepost brushed off my shoulders, diligent work discipline and a hefty forecasting tool for my current position as an Assistant Trader to the uttermost. Often accompanied by prestige, this award provides a fulfilling feeling of giving back and contributing to technical analysts’ society in the financial markets. Besides, this certification further enhances the competitive edge of AfrAsia Bank’s Treasury department in technical market analysis, market forecasts and risk management on forex and other asset classes. Personally, I consider this achievement as a turning point in the early stages of my career. My trading style is even more scientifically oriented. One should look at the currency market with discerned eyes, poise and vigour. The trick is to understand the difference between being good and merely being lucky. Two years ago, I set myself a target to overcome the initial challenges of Elliott Wave analysis and master it. I am still in pursuit of finding the best way to make money with calculated risk and become a fully-fledged trader. Amanda Gorman depicts such aesthetic in her poem The hill we climb : “For there is always light, if only we’re brave enough to see it. If only we’re brave enough to be it.” I tend to manoeuvre fundamental news as a spur that trigger moves and shape the anticipated patterns in the technical analysis. I would say a plethora of news is noise and mostly meaningless. Combined with Relative Strength Index, Elliott Wave analysis are the two main instruments that dominate my trading environment and that I use to leverage my abilities. At the end of the day, the aim is to win more than lose.
Elliot Wave international provides timely analysis of every major world market. What do you find most useful about using the Wave Principle to forecast the financial markets? How does the Elliott Wave analysis differ from other technical analysis tools?
The patterns of an Elliott Wave analysis are repetitive in form, but not necessarily in time and amplitude. It engineers an estimation of the neighbouring region or level through Fibonacci sequences, ratio analysis and waving counting. In markets, the concept integrates certainty in an unpredictable world especially after recently experiencing the aftermath of covid-19. The Wave principle provides the basis for disciplined thinking and a perspective on the market’s general position and outlook. Progression in markets unfolds in waves which are patterns of directional movement. Its movement reflects a repetition of forms that is independent of both presumed causal events and periodicity. Indicators like Moving Average lagged behind and most of the time, moves are already made before they shout clear signals. Hurst cycle, Harmonic patterns and Gann angles are technical analysis structures that necessitate proper investigation.
There is a growing interest towards Forex trading with diverse options for would-be investors out there. How do you become a successful forex trader? What are the strong skills required to master the complexities of the forex market?
Traders learn through study, through trial and error, and through intense analysis of markets, strategies, and techniques. Most of all, traders learn through experience. Self-discipline primes among all skills. As a trader, our opinion is tested each time a trade is placed. Our emotions are tested as individual trades often fail. Having a control over our emotions benefit successful trading. One should weigh out the risks associated before entering any trade, devise a trading strategy, not be tempted to widen stop loss or be greedy to expand targets. Resilience helps to stay in the trade because you need to respect all the rules and guidelines of the Elliott Wave framework. As markets evolve, so should the traders while reinventing their strategies to remain profitable. The currency market can intimate all novice but as John Coates describes in his book, The hour between the dog and the wolf, “Enterprise is driven to a great extent by a pure love of risk taking.”
COVID-19 outbreak has triggered much stress into the Forex Markets. How do you foresee the situation for asset classes in 2021?
U.S dollar could bounce back to pre-covid level in 2021. USD/JPY could be a brilliant illustration of this scenario.
From an Elliott Wave standpoint, USD/JPY percolated in a lengthy corrective phase in wave ((2)) since March 2020 from 111.71 high to 102.57 low on January 2021, a level representing 88.6% Fibonacci retracement of wave ((1)). The pair ended 2020 in an ending diagonal, which signalled reversal of larger trend. On the daily chart, bulls have far remained very responsive this year. If the pair remains above Wave ((2)) at 102.57, impulse Wave ((3)) formation above support at 101.16 could be anticipated with little fanfare, with target neighbouring zone 119.63 to 120.88. Therefore, a flight above 111.71 would cherish upside momentum. Failure to propel above support at 101.16, stemming from wave ((0)) will catalyse a jolting collapse and invalidate the technical analysis count.