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VIDEO: 3 Ways To Set Price Targets
How do you identify price points where a market rally or decline may stop and reverse?

By Vadim Pokhlebkin
Fri, 16 May 2008 17:15:00 ET
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If you're a frequent guest at elliottwave.com, you may remember a free video on how to set price targets using Fibonacci technique we shared with you a few days ago.
 
Jim Martens, Elliott Wave International's Senior FX Strategist and the author of that video, is not the only EWI analyst who records video updates for his subscribers. Tom Denham, EWI's Senior European Equity Analyst, does the same – several times a week.
 

Need a forecast for DAX, FTSE, CAC40
, or other European stock market? Investors: Try EWI's European Financial Forecast for a longer-term perspective. Traders: See EWI's Stocks Specialty Service for intensive, intraday and daily coverage.
 
In the video update you're about to see, Tom Denham demonstrates his technique of setting price targets for a potential trade using three factors: Common length proportions between market rallies, the theory of "round numbers," and Fibonacci projections.
 

May 11, 7:08 PM: "[Tom ], I thought I would let you know how much I appreciate the video updates. They are enlightening, and are a really effective communication tool. Thank you for your consistency and perseverance! Bw, S.N."

 
Watch Tom Denham's 3 Ways To Set Price Targets now.
 
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Every Monday, Wednesday and Friday
, Tom Denham's European Short Term Update brings you forecasts of the FTSE, DAX, CAC, SMI, AEX, IBEX 35, S&P/MIB and Euro Stoxx 50. The latest, May 16, Update also gives you short-term forecasts for stocks in India, China and Turkey.

Tags: dax, ftse, cac40, smi, aex, ibex 35, S&P/MIB, euro stoxx 50, Forecast, fibonacci, THEORY OF round numbers, European EquitY

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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.