guidelines & fibonacci applications michael madden, cmt ... · recommended study (not just a...
TRANSCRIPT
Elliott Wave
1
Guidelines
Elliott Wave Rules & Guidelines of Wave
Formation
Fibonacci Applications
How we can use them to define &
improve pattern recognition
2
Complete Market Cycle
3
Not This Easy…
4
But not so difficult either….
5
See something familiar?
6
Qualify The Pattern
7
Fib Targets - Head
8
Fib Targets - RS
9
Fib Targets - LS
10
11
Entry
12
Stop & Targets
13
Trigger Point
14
Retest
15
Bingo !!
16
Manage Trade
17
And with Elliott…
18
EW Guidelines of Wave Formation
1. Alternation
2. Depth of Corrective Waves
3. Extensions
4. Wave Equality (Time & Magnitude)
5. Channeling (Throw Over and Under)
6. Volume – (Divergence)
7. The Right Look
8. Wave Personality
19
1. Alternation
Waves 2 and 4 of Impulses
Sharp for wave 2 – Sideways for wave 4 (new
price extreme)
Often a Fib time relationship also
Waves A and C of Corrections
20
2. Depth Of Corrective Waves
Second Waves
50%, 61.8%, 78.6%, 88.6% Retrace of
Wave One
Fourth Waves
23.6%, 38.2%, 50%
Retrace of Third Wave
21
3. Extensions
Wave 3 of an Impulse Most Common in
Stock Market
Wave 5 in commodities and Currencies
First Wave Extensions are rare
22
4. Wave Equality (Time & Magnitude)
23
5. Channeling (Throw Over and Under)
24
6. Divergence – Volume &
Momentum Indicators
Wave 5 and wave 3
Wave A and C
25
7. The “Right Look”
26
8. Wave Personality
27
Wave Personality
28
EW Guidelines - Extra
Triangles
Ending Diagonals
Truncated Waves
Third Waves
Primary Angle of Trend
29
Example
30
Silver
31
32
Channeling
33
Fibonacci Applications
At Least 2 Degrees of Trend
Golden Ratio
34
Fibonacci Retracements
35
Impulse Wave Price Divider
36
Impulse Wave Time Divider
37
AUDJPY - WK
38
Channel & Alternation
39
Fibonacci Projections
40
Fibonacci Retracements
41
Add Labels
42
What Next?
43
Begin the process again
44
Gold – Intra Day
45
Qualify Structure / Pattern
46
Good old channels
47
Five Waves Down?
48
Corrective Price Channel
49
Something not right
50
Re-draw Channel
51
2nd Time lucky !
52
Summary
Using the WP successfully is not just counting 1-5
There are excellent rules & guidelines we can use to formulate a trading plan with the WP
Fibonacci is an integral component to the WP
53
Recommended Study (Not Just a Read !!)
Elliott Wave Principle – Frost & Prechter
Visual Guide to EW Trading Wayne
Gorman & Jeffrey Kennedy
Mastering Elliot – Constance Brown
Fibonacci Analysis Constance Brown
Technical Analysis for the Trading
Professional Constance Brown
54
Contact
www.elliottwaveireland.com
55