The market follows the rules of Elliott Wave Theory (EW), but interpreting them requires skill and precision. The five strict rules identify areas of low risk and rule out many possibilities. The Fibonacci guidelines we use at L2T improve this further, focusing on the most likely scenarios. However, experience remains key.
The analyst identifies structure in what appears chaotic, and identifies the most likely scenario—even without all the information. When the market does not seem to follow the rules, it is often due to misinterpretation or the market is taking a less likely path.
Flexibility is key, as the details may change as new data emerges, while the overall outlook and fundamental analysis remain constant.
