Elliott Wave Trading

Transcription

Elliott Wave TradingA nuts-and-bolts professional approachExercises in REAL TIME CASES4Advanced Level---------------------------------------Dr Mircea Dologa

----------------------Elliott Wave TradingA Nuts-and-Bolts Professional ApproachExercises in REAL TIME CASESAdvanced LevelVolume -----------------------Copyright 2018 by Dr Mircea DologaDate of Publishing – January 10th, 2018Printed in FranceCopyrights NoticeALL RIGHTS RESERVED: No part of this material may be reproduced withoutwritten permission from the publisher and the author. No part of this book may bereproduced, stored in a retrieval system, or transmitted in any form or by any means,photocopying, electronic, mechanical, or otherwise, without the prior permission of thepublisher and the author.Library of Congress Cataloguing-in-PublicationProtected by United States Copyright LawCertificate of Registration issued under the seal of Copyright Office in accordancewith title 17, United States Code.ISBN (13) er.comParis – FRANCE

Why this Elliott Wave Trading Book?Common sense incites us to acquire a consistent technique that will give you confidenceand help you to obtain consistent profits. For the experienced traders the merits ofElliott wave technique are obvious. Most of them increased their profitability by morethan 40% since using the Elliott waves. But increasing profitability is a question ofmethod, not only on assimilating this technique, but also on practicing it. Compared tothe existing Elliott wave books, we tried to reach two objectives:o First, the presentation of applying the epistemology science in the process of fasterassimilation of basics and of advanced material of Elliott waves. This method ofbuilding knowledge blocks, sort of modules, is used in all our four Elliott wave booksin such a way that each module can be easily assimilated individually. Then, we willconsider them globally and then intricate them, for an immediate memory retentionand applicability. During the last century, along the decades, epistemology proved toaccomplish excellent results. There is more about this subject farther, in IntroductionSection.o Second, the sharing of our “know-how” of the practice of Elliott waves. We call it “thenuts-and-bolts professional approach”.Knowing that there is always a problem of finding the correct Elliott wave labelling,we have worked out a new approach towards a high probability outcome.We have also emphasized the dynamic aspects of the wave movements based onkinetic energy source building-up of the waves. This becomes highly beneficial to thetrader, knowing that an established highly probable scenario could be invalidated bythe market, in a blink of an eye. The transition phase from a highly probablescenario to the initially less probable one is here underlined with their invalidationand validation parameters. Once again, the trader’s flexibility based on soundcriteria, takes here all its importance.We consider that it is inconceivable to practice successfully Elliott waves without thetop-down approach using the multiple time frames. Taking a trading decision usingjust a small portion of a single time frame chart is an archaic way of trading. Wehave plainly emphasized this aspect of Elliott wave trading.Furthermore, we invite you to examine the Contents of our books for an extensiveperusal of our work.The essence of becoming a consistent trader is to understand the overall context of themarket, and specialize in one of the techniques that are working for various markets inany of the two possible states: trending or non-trending! This being said, the Elliott wavescan best fulfil these conditions.By writing these series of four Elliott wave books, our objective was to take the traderfrom the starting blocks to the high territories of the green grass plateaus !ConclusionAfter several decades of practice and teaching, we have decided to share our research andexperience with the trading community colleagues. We firmly believe that the intelligent Elliott WavePractice is one of the most reliable and consistent techniques for the astute trader. It harmoniouslyrespects and obeys the four principles enumerated below:ooooFinding where the market is coming from, where it is located now and where it is heading,A time-price ethereal space as the trading arena of the market flow evolvement,A ubiquitous usefulness in trending and even in sideways movements of various markets,And finally, an ergonomic and profitable intricacy with risk and money management.

Elliott Wave Trading - A Nuts-and-Bolts Professional Approach – Volume 1Volume 4Advanced Level450 pagini – 410 charts – 10 Excel files & TablesbyDr Mircea Dologa, MD, CTAContents – Volume 4-------------------------IntroductionPush the Limits of your Learning CurveBehind the InvisibleWhy this book?EpistemologyConclusionDisclaimerChapter 1 – Nuts-and-Bolts of a Profitable Elliott Wave TraderWrite the trading plan, stick to it and trade the trading plan1. Conceive the Most Probable Scenario of the Market Flow2. Plan a Second Scenario and Specify when the First will be Invalidated3. Establish the Key-Levels & Limits of the End-Run Phenomenon3.13.23.33.4Price Key Levels LocationsDirectional & Inverted Drawn PitchforksOrthodox & Un-orthodox Drawn Trend LinesCurvilinear Limit Drawings4. Establish the Kinetic Energy Source Responsible for Wave Strength5. Apply the Top-Down Technical Analysis5.15.25.35.4Dominant Trend on Each Time FrameStructure of the Last Bar (s)Behaviour of the Last Bar (s)Projections of the Current Swing & Last Bars6. Gaps Employ in Immediate Wave Projections7. Detecting the Best Time-Zone for Intraday Trading ?8. Detecting the Best Time-of-the-Day for Intraday Trading ?9. Detecting the Correction Ending (usually a C-wave or a E-Wave) in Trade Preparation Process10. What is the Best Time Frame for Intraday Trading ?10.110.210.3Track a 5-min chart ?Track a 15-min chart ?Track an hourly chart ?11. Continuous Quote Monitoring of Entire Index Stock Array to Determine the Market FlowBehaviour12. Trader’s Journal – Keep Notes on Thoughts13. Key Points to RememberChapter 2 – Trading W1 WaveEarly ending detection of the ABC pattern of prior cycle guides the W1 trade profitability1.2.3.4.5.DescriptionSpecific Geometric PatternsFocus on Terminal Sub-Wave of C-Wave of ABC PatternErrors to be Avoided in W1 TradingTrading TechniquesCopyright 2016 by Dr. Mircea Dologa - All Rights Reserved - www.pitchforktrader.com487

Elliott Wave Trading - A Nuts-and-Bolts Professional Approach – Volume 16. Errors to be Avoided and their Corrections7. Key Points to RememberChapter 3 - Can W2 Wave be Traded ?Only a professional approach can succeed in W2 trading !1.2.3.4.5.6.7.DescriptionSpecific Geometric PatternsFocus on Terminal Sub-Wave of W1Professional Approach - Errors to be Avoided in W2 TradingTrading TechniquesErrors to be Avoided and their CorrectionsKey Points to RememberChapter 4 – Trading W3 WaveDepth degree of W2 guides the W3 trade profitability1.2.3.4.5.6.7.8.DescriptionSpecific Geometric PatternsFocus on Terminal Sub-Wave of C-Wave of W2Trend Line Angles as Strength / Weakness Mesures of W3Errors to be Avoided in W3 TradingTrading TechniquesErrors to be Avoided and their CorrectionsKey Points to RememberChapter 5 - Can W4 Wave be Traded ?Only a professional approach can succeed in W4 trading !1.2.3.4.5.6.DescriptionSpecific Geometric PatternsProfessional Approach - Errors to be Avoided in W4 TradingTrading TechniquesErrors to be Avoided and their CorrectionsKey Points to RememberChapter 6 – Trading W5 WaveWidth & depth degree of W4 guides the W5 trade profitability1.2.3.4.5.6.7.8.DescriptionSpecific Geometric PatternsFocus on Terminal Sub-Wave of C-Wave or E-Wave of W4Trend Line Angles as Strength / Weakness Mesures of W5Errors to be Avoided in W5 TradingTrading TechniquesErrors to be Avoided and their CorrectionsKey Points to RememberChapter 7 – Trading A-WaveEarly ending detection of the W5 guides the A- wave trade profitability1.2.3.4.5.6.7.DescriptionSpecific Geometric PatternsFocus on Terminal Sub-Wave of W5Errors to be Avoided in A-Wave TradingTrading TechniquesErrors to be Avoided and their CorrectionsKey Points to RememberCopyright 2016 by Dr. Mircea Dologa - All Rights Reserved - www.pitchforktrader.com488

Elliott Wave Trading - A Nuts-and-Bolts Professional Approach – Volume 1Chapter 8 – Trading C-WaveEarly ending detection of the wave B guides the C-wave trade profitability1.2.3.4.5.6.7.8.DescriptionSpecific Geometric PatternsFocus on Terminal Sub-Wave of B-Wave of ABC PatternTrend Line Angles as Strength / Weakness Mesures of C-WaveErrors to be Avoided in C-Wave TradingTrading TechniquesErrors to be Avoided and their CorrectionsKey Points to RememberChapter 9 – Trading A-B-C PatternStructure of the prior W1-2-3-4-5 impulsive pattern guides the ABC-pattern trade profitability1.2.3.4.5.6.7.DescriptionSpecific Geometric PatternsFocus on Terminal W5 of W1-2-3-4-5 PatternErrors to be Avoided in ABC-Pattern TradingTrading TechniquesErrors to be Avoided and their CorrectionsKey Points to RememberChapter 10 - Annexes : Tables & Excel CalculationsBibliographyCopyright 2016 by Dr. Mircea Dologa - All Rights Reserved - www.pitchforktrader.com489

Elliott Wave Trading - A Nuts-and-Bolts Professional Approach – Volume 4Introduction“If you don’t try to be the best, it means that you ceased to be good”Common sense compels us to acquire a consistent trading technique that gives us theconfidence to learn how to trade successfully. Elliott wave principle is one of theprofitable choices. This will not come without “sweat and tears”, but like the wisdomfrom sagacious China says: “What first brings pleasure, in the end gives only pain, butwhat at first causes pain, ends up in great pleasure”.This volume is uniquely specialized in presenting real time trading cases, thus showingthe apprentice trader how to apply the assimilated knowledge to an ongoing market.Like the sniper, the trader will have the patience to wait for the well-assessed and waitedfor set-up and only then, it will take action. The book is composed of 10 chapters (450pages, 410 charts and 10 Excel & Table files). The successful outcome is simple Onetarget, one hit.The main purpose of writing this manual was dictated by the author’s desire to help thetraders in their process of applying the trading rules for each of the impulsive Elliottwaves: W1, W3, and W5. Even if classically, it is not advisable for the beginner orcommon experienced trader to trade the corrective waves, the author emphasizes herethe high caution of doing just that, but only once the trader has acquired the necessaryexperience. Thus, the W2 and W4 trading will not have any secrets for the astute trader.The trading approach of the impulsive waves, A and C, of corrective A-B-C patterns arenot neglected, neither.Numerous and efficient little known topics are described and illustrated here by meansof many charts: conceiving of the most probable scenario, always having an alternateone with their invalidation/reinitiating conditions, establishment of the end-runphenomenon, the source of building the kinetic energy indispensable to the momentumstrength of Elliott waves, the top-down technical analysis, the identification of dominanttrend, the role of the last bar and also the last swing to forecast the identification of theincoming swing/trend, the most optimal trading time frame to be used; all these arescrupulously and methodically written in the trader’s journal. The module of risk andmoney management is considered here as one of the most important elements, a truthfulgearwheel indispensable to the well oiled mechanism of getting a highly profitable trade.In practicing these real time cases presented in this manual, we have conceived andleaned on a strategic analysis composed of five-tactical precursory parameters of everytrade.1. Pre-Market Momentum Evaluation :o External: Nikkei 225, US News at 14:30hrs (CET),o Internal: Energy sourced out of previous day.2. Quantifying the Internal Strength / Weakness of the Ongoing Market3. Evaluation of the most Current Deploying Momentum (Vertical & Horizontal Axis)4. End-Run Limits forming Clusters & Confluences5. Strict Monitoring for Reversals / ContinuationThe Annex chapter at the end of this volume will efficiently serve the trader with itsExcel spreadsheet and tables. They were conceived, not only to enhance the assimilationof the entire material, but also to give the trader a better chance to be ahead of thecrowd. Always remember that “The Elephants don’t like to be accompanied!”.Elliott Wave Trading - A Nuts-and-Bolts Professional Approach – Volume 1

About us:Email: mircdologa@yahoo.comDr Mircea Dologa began his investment and trading career in 1987, in pharmaceutical and real estateindustries. Once he passed the Series 7 and Series 3 exams, he obtained the two indispensable tradinglicences controlled by United States Government: the Registered Commodity Trading Adviser (CTA)Licence and Registered General Securities Representative - Investment Adviser Licence. During thetraining periods, he realized the scarcity in financial literature and trading seminars, of the true ‘knowhow’ practical tools. After reading hundreds of books and attending numerous seminars, the samequestion kept popping up: Where is the meat? Most of the time, besides the classics it wasn’t there!As a registered Commodity Trading Advisor (CTA) with National Futures Association of U.S.A., hefounded a new teaching concept, based on practical aspects of trading, for both newcomers andexperienced traders.He published more than 100 articles and he is an international contributor to trading magazines in theUSA (‘Technical Analysis of Stocks & Commodities’, ‘Futures’ and ‘eSignal.com Education Sec

Elliott Wave Trading - A Nuts-and-Bolts Professional Approach – Volume 1 Introduction “If you don’t try to be the best, it means that you ceased to be good” Common sense compels us to acquire a consistent trading technique that gives us the confidence to learn how to trade successfully. Elliott wave principle is one of the profitable choices. This will not come without “sweat and .