Hi!
I am from a forex background - having worked for 3 years for a forex systems developer. Recently I started investigating how Elliott Wave Analysis works on various types of markets. After having examined over 50 different instruments/timeframes I came to the preliminary conclusion that the Forex market is inferior to the Stocks/Commodities markets in terms of average Reward/Risk ratio you get per Elliott Wave Entry (second conclusion is that weekly and hourly charts are both inferior to the daily charts for this type of analysis). By this entry I mean capturing either the 3rd or the 5th waves of an impulse sequence. It looks like the Forex market is more efficient or rather slow in this regard and doesn't allow for a strong move to develop fast enough to lock in enough profits for a higher REWARD/RISK. This might be because the heterogeneity of the market participants for some of the lesser traded currency pairs is low....even if they trade large sums of money - thus the choppiness they demonstrate. My question is, therefore, what are the most liquid markets in terms of heterogeneity of the market participants and total volume traded. Not volume alone - which would give the FX the first place immediately.
Thanks!!!
Dima
PS: SHORT VERSION OF THE QUESTION:
IS THERE ANY RELIABLE STATISTIC ON DIFFERENT MARKET LIQUIDITY?
I am from a forex background - having worked for 3 years for a forex systems developer. Recently I started investigating how Elliott Wave Analysis works on various types of markets. After having examined over 50 different instruments/timeframes I came to the preliminary conclusion that the Forex market is inferior to the Stocks/Commodities markets in terms of average Reward/Risk ratio you get per Elliott Wave Entry (second conclusion is that weekly and hourly charts are both inferior to the daily charts for this type of analysis). By this entry I mean capturing either the 3rd or the 5th waves of an impulse sequence. It looks like the Forex market is more efficient or rather slow in this regard and doesn't allow for a strong move to develop fast enough to lock in enough profits for a higher REWARD/RISK. This might be because the heterogeneity of the market participants for some of the lesser traded currency pairs is low....even if they trade large sums of money - thus the choppiness they demonstrate. My question is, therefore, what are the most liquid markets in terms of heterogeneity of the market participants and total volume traded. Not volume alone - which would give the FX the first place immediately.
Thanks!!!
Dima
PS: SHORT VERSION OF THE QUESTION:
IS THERE ANY RELIABLE STATISTIC ON DIFFERENT MARKET LIQUIDITY?