Successful Elliott wave traders share common traits with successful Black Friday shoppers: the desire and preparation it takes to get ahead of the herd.
Some savvy shoppers camp out for days ahead of Black Friday specials. Now is the perfect time to think about what you can do over the Fall Break to prepare yourself to become a better trader.
Education is as important to trading as showing up early is for a day-after-Thanksgiving deal-hunter. There's no time like the present to start.
In his online, on-demand course,
How to Spot Trading Opportunities, EWI Senior Instructor Jeffrey Kennedy shares practical tips and strategies to help you identify trade setups using the Wave Principle.
In this excerpt he shows you the trade setups the Wave principle offers:
In the Bullish Trade Setups what we're trying to do is anticipate the rallies. As you can see, in the bullish trade setups in (2) and (4), what we're looking to do here, as a trader, is to buy the pullback and position ourselves within the larger uptrend.
Three-wave moves are corrections, they're counter-trend structures. Five-wave moves are trending moves, and they define the larger trend. As a trader, we want to define or determine what the trend is, and whenever the trend pauses, and forms a correction, that's our buying opportunity -- that's when we want to re-join the trend.
As you can see here, when a five-wave move is complete, it's retraced in three waves in a correction, so here's another trading opportunity that we can take advantage of to the short side; to the sell side. If you notice within the Bearish Trade Setups, this gives us shorting opportunities.
Within the classic, cornerstone Wave pattern of five waves up and three waves down, we have four really good opportunities to position ourselves within the trend.
So these are the four types of trade setups I like to focus on as a trader and as an Elliottician.
This is only a preview of Jeff's thorough teaching style.
Along with basics like this, Jeff also covers a unique Fibonacci technique he uses to assess risk v. reward, how to identify and trade diagonal triangles, and one of his long-used strategies that he calls trading the "Zone." You also learn how to calculate specific protective stop levels and trade objectives, all in just over 2 hours.
Want to get ahead of the herd this holiday season? Start by getting instant access to this on-demand course, as well as the online Q&A forum: prepare yourself to make better trades NOW.
You could even kill two birds with one stone and stream EWI educational content while you wait for the big sales!