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3 Components of a Viable Trade Setup
Elliott Wave Junctures newest video lessons give you the ultimate advantage for anticipating major turns in financial markets

By Nico Isaac
Wed, 07 Nov 2012 10:00:00 ET
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Right now I’m reading a biography of the famous Wall Street trader Martin “Buzzy” Schwartz. In it, he describes his first days on the hectic, high-paced floor of the American Stock Exchange where one detail instantly stood out: The traders who went into the pit without a clear and defined discipline had the biggest sweat stains on their “members only” blue smocks at the end of the day.

Without discipline, trading in financial markets is like skydiving without a working parachute. Having one has always been the number one rule of every market success story, including EWI’s chief commodity analyst Jeffrey Kennedy.
For over 20 years, Jeffrey’s primary discipline has been Elliott wave analysis, combined with other technical indicators. By now, Jeffrey knows the specific rules and guidelines of the Wave Principle like the back of his hand, all the while bringing his own, original trading lessons and indicators into being.
It is with this stout arsenal that Jeffrey continues to navigate the volatile maze of dozens of markets, dodging popular decoys and overcoming hurdles to reach the ultimate goal: Identifying high-confidence trade set-ups.
In EWI’s newest educational service, Elliott Wave Junctures, Jeffrey picks one of these invaluable lessons off the shelf and, 3-5 times per week, creates for subscribers a short, simple instruction video on real-life Elliott wave application.
The September 7 Elliott Wave Junctures video episode titled “The 3 Components of a Viable Trade Setup” presents this holy, high-confidence trading trinity:
  1. Identify the larger trend: Look for strong, smooth, uninterrupted price action in ONE direction.  
  1. Look for a correction: Here, Jeffrey reveals several “key" signatures of counter-trend price action including number of waves and common Fibonacci relationships between waves. 
  1. Evaluate the technicals: “Make sure,” Jeffrey begins, “the momentum signatures are appropriate for the price move.”  
Next, Jeffrey applies these 3 components to the real-world price action of 2 financial markets:
  • Cree, Inc (CREE, NASDAQ)
  • Baxter International, Inc (BAX, NYSE) 
In the chart below, Jeffrey employs step 3 -- evaluating technicals -- to 1 of the 2 featured markets. There, he invites viewers to “look” at the recent “compression of the Bollinger Bands” (circled in green) and explains:
“What this tells me is that whenever this market is through compressing, it’s going to expand. A good example is what happened when compression occurred in late July/early August and then saw expansion to the upside. We’re seeing the same compression again.”  
Bottom line: The runtime of the September 7 Elliott Wave Junctures video is 4 minutes 14 seconds. The runtime of its lesson is the rest of your trading life. Knowing where and when waves may end means knowing when major trend changes will begin.
Don’t wait another minute. Enlist in Jeffrey Kennedy’s exclusive Elliott Wave Junctures “school of trading” and perfect your discipline.

      Elliott Wave Junctures
Elliott Wave Junctures (EWJ) gives you 3 to 5 video-based trading lessons each week that help you master the many critical aspects of spotting -- and acting on  -- high-confidence trading opportunities for yourself. Now you can try EWJ risk-free for 30 days. Learn more >>



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