Visual Guide to Elliott Wave Trading (eBook)

Jeffrey Kennedy is Chief Commodity Analyst at Elliott Wave International (EWI), and editor of the Monthly Futures Junctures publication. A recognized expert in Elliott wave analysis and trading with more than 20 years of experience, Kennedy has taught thousands of people how to improve their trading with the Elliott Wave Principle. Kennedy's polished wit and proven trading wisdom have made him a sought-after public speaker. He teaches online learning courses and conducts in-person seminars at Elliott Wave International, and is also an adjunct professor of technical analysis at Georgia Tech's Quantitative and Computational Finance program. His precise and memorable trading maxims make technical analysis accessible to anyone with an interest in the markets, regardless of experience level or account size. Wayne Gorman is Senior Tutorial Instructor at Elliott Wave International. With more than 30 years of experience as a risk manager and trader, he began his career at Citibank managing money market and derivative portfolios, and then went on to forex trading and various treasury management roles in London and New York. Wayne has been using the Wave Principle since 1986, and traded full time with his own capital for more than four years. He has worked exclusively with Elliott Wave International since 2002. Known for his ability to explain the logic behind technical and contrarian trading methods in a careful and understated manner, Wayne is a consummate Elliottician. His experiences helped him develop an impressive breadth of educational materials, which any trader can use to learn Elliott wave analysis successfully.

How to Use This Book vii

Foreword ix

Acknowledgments xi

Introduction xiii

Disclaimer xv

Part I: Trade Setups 1

Chapter 1: The Anatomy of Elliott Wave Trading 3
Jeffrey Kennedy

Part II: Trading Examples 19

Chapter 2: How Zigzags and Flats Set Up a Trade for the Next Impulse Wave 21
Jeffrey Kennedy on CAT, TECH, and the Australian dollar

Wayne Gorman on silver and robusta coffee

Chapter 3: How a Triangle Positions You for the Next Move 77
Jeffrey Kennedy on GCA

Wayne Gorman on DELL

Chapter 4: Riding Wave C in a Zigzag 99
Wayne Gorman on S&P futures and T-bond futures

Chapter 5: Using Ending Diagonals to Trade Swift and Sharp Reversals 125
Jeffrey Kennedy on DJIA, BSFT, SLW, and TCK Wayne Gorman on the euro

Part III: Going Beyond Elliott Wave Patterns 155

Chapter 6: Applying Technical Indicators 157
Jeffrey Kennedy on CREE, WMT, and WYNN

Chapter 7: A Basic Options Trade 185
Wayne Gorman on the euro

Chapter 8: More Advanced Options Trades 195
Wayne Gorman on heating oil and soybeans

Chapter 9: Parting Thoughts 223

Appendix A: Introduction to the Wave Principle, by Wayne Gorman 229

Appendix B: Bloomberg Functionality Cheat Sheet 247

Glossary of Elliott Wave Terms 249

Educational Resources 253

About the Authors 255

Index 257