Watch How One Elliott Wave Pattern Signaled a Sizable Price Move In A Key Commodity Market

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Watch How One Elliott Wave Pattern Signaled a Sizable Price Move In A Key Commodity Market
The May 8 Daily Futures Junctures video clip shows how editor Jeffrey Kennedy used a contracting triangle to anticipate the May slide in cotton to a 3 year low

By Nico Isaac
Fri, 08 Jun 2012 17:00:00 ET

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Everyone knows: If you want the best meal in a fancy restaurant, ask what the chef's favorite dish is. That's what you order.

Likewise, if you want to make the most of the near-term Elliott waves, well, you ask which of the 13 known Elliott patterns is the favorite of EWI's senior analyst, Jeffrey Kennedy. Then you wait for it to emerge on a price chart.

Jeffrey's answer, by the way, is the Elliott triangle, or better yet, the contracting triangle. Here's a brief definition:

A triangle is a 5-wave pattern labeled A-through-E, with a 3-3-3-3-3 subdivision. They always occur in a position prior to the final actionary wave of one larger degree; i.e. wave 4 of a 5-wave structure, or wave B of a 3-wave move. Once finished, triangles are followed by a sharp, swift move known as a "thrust," in the opposite direction.

Now, in his latest Monthly Futures Junctures' "Traders Classroom" segment, Jeffrey explains the flip-side of the "best-part" coin about triangles; namely, they not only precede sizable price moves, but you can also estimate how far said move will travel by using a one simple guideline: The Thrust Measurement.

It all sounds great in theory, but what about practice?

Well, in the May 8 Daily Futures Junctures, Jeffrey observed a huge, multi-month contracting triangle coming to an end in cotton. Here's an excerpt from the video portion of the May 8 DFJ publication.

From there cotton prices turned down in a violent selloff to their lowest level in 3 years, right into the cited 75-70 handle from the May 8 video. That, in our book, is a textbook "thrust" in action.

So, what are you waiting for? The latest Monthly Futures Junctures 3-page "Traders Classroom" video-and-print lesson on triangles reveals exactly how to use the "thrust measurement" to identify the likely target of post-triangle moves. AND the short-term sister Daily Futures Junctures publication reveals which key markets have triangles unfolding on their price charts right now.

The complete package is absolutely risk-free, today.

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Futures Junctures editor Jeffrey Kennedy is your personal opportunity scout as he searches the world's leading commodity markets and serves up his best picks 5 days a week.

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Tags: contracting triangle, cotton futures, Daily Futures Junctures, Elliott wave, Elliott Wave trading, futures trading, Jeffrey Kennedy, trading lessons

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