One of the most challenging tasks when trading is price forecasting, this meaning not only calling for turning points (tops or bottoms), but also for the time the specific forecast is going to happen.
Trading without taking into account the time element is a deadly mistake and should be avoided by traders at all costs. Knowing a certain price will be touched but not having any idea about when such thing will happen, it should be viewed like a job half done.
There are several trading theories that tried to incorporate the time element into any ones trading decision, but none come so close to reality like the Elliott Waves Theory and the works of W.D.Gann.
In the case of Elliott, for specific patterns/waves price makes, time can/should be considered when trying to count waves. For example, if price is developing a wedge, falling or rising, and this one comes as an ending diagonal, then it is typical for price to reach the fifty percent retracement from the whole wedge in less than the time taken for the whole wedge to form. And there you go you have a target, namely the price value given by the retracement level, and the possible time for that target to be reached. [Read more...]