Since its creation in 1913, the primary intended role of the
U.S. Federal Reserve Bank has been that of protector. In theory,
the central bank was bestowed with the power to shape monetary
policy in a way that would keep both booms and busts in check.
The two main tools at its disposal — interest rates and money
creation — would provide a “ceiling of normalcy” above
expansions AND a “net of safety” below contractions.
This
article was syndicated by Elliott Wave International and
was originally published under the headline Basic Wave Patterns: How a Zigzag Differs from a Flat.
EWI is the world’s largest market forecasting firm. Its staff
of full-time analysts led by Chartered Market Technician
Robert Prechter provides 24-hour-a-day market analysis to
institutional and private investors around the world.
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
