Mastering Elliott Wave Principle: Elementary Concepts, Wave Patterns, and Practice Exercises

Praise For Mastering Elliott Wave Principle

"By the second chapter, one thought kept repeating, ′Oh my, I′mreally going to understand how to do this!′ Interpreting wavecounts was just too difficult before with no one to highlightmy mistakes and point out the real clues to the next probable move.Reading this book is just like sitting next to Connie and hertrading screens . . . patiently walking through, bar–by–bar, thehints and indications exposed by the market. She holds nothingback."
Annette M. Koberlein, CAIA, CMT, Trader, SAC CapitalAdvisors

"The application of balance, proportion, and symmetry iscarefully explained step by step through the use of actualscreenshots and examples that cover a variety of markets and timehorizons. This is the first half of the new gold standard for anyserious practitioner of the Elliott Wave Principle."
Stephen Andersen, Senior Manager, Janus Capital Group

"This is Elliott Wave Theory in the eyes of a Gann expert.Connie definitely took the theory to a whole new level and made iteasier to understand. True work of a master."
Mohammad Alkhabbaz, Kuwait

"Connie Brown′s understanding of the Elliott Wave Principle issubstantial and comprehensive. She has an exceptional ability toteach students how to bridge the gap between traditional text bookdiagrams and real–world application. Mastering Elliott WavePrinciple is required reading for anyone looking for a solidfoundation in Elliott Wave analysis."
Kyle Crystal, CMT, Hedge Fund Manager

Introduction xiii

Why this Teaching Approach is Different xiii

Elliott Waves and Market Swings Are Not the Same xvi

Are Attributes of Balance and Proportion Subjective? No. xxi

CHAPTER 1 Using the Elliott Wave Principle to Evaluate MassPsychology 1

Geometric Proportion in Market Data 2

CHAPTER 2 The Patterns That Describe Trending Market Movement17

Impulse Waves Create Market Trends 18

How to Label a Specific Price Pivot 23

Using Fewer Bars to Represent Complete Impulse Waves 24

Working with Impulse Waves in Strong Trends 26

Termination Diagonal Triangles: An Introduction 35

CHAPTER 3 The Basic Patterns That Describe Corrective MarketMovement 39

How to Examine Corrective Price Movement 40

A Zigzag Corrective Pattern 43

A Flat Corrective Pattern 49

An Expanded Flat Corrective Pattern 53

The Triangle Corrective Patterns 58

CHAPTER 4 Diagonal Triangles (Wedges) 67

Termination Diagonal Triangle Pattern 67

Leading Diagonal Triangle Pattern Type 2 73

CHAPTER 5 A Summary with Study Flash Cards for Patterns,Rules, and Guidelines 77

Study Flash Cards for the Basic Patterns 78

A Summary of Rules and Guidelines 83

A Table of Degree Labels and Names 85

Beginner Level: Practice Examination 86

Beginner Level: Final Examination 95

Exercise Appendix 105

About the Author 137

Index 139

Constance Brown, CMT, is the founder of Aerodynamic Investments Inc. (www.aeroinvest.com). Connie trades for an institutional bank and offers research and analysis to financial institutions worldwide. She also trains other advanced professionals and hedge fund managers. The Market Technicians Association in New York has members in seventy countries. The organization selected her book Technical Analysis for the Trading Professional, Second Edition as required study for the final certification examination for the CMT (Chartered Market Technician). She has written nine books and was recently the editor of the Journal of Technical Analysis. Brown has been a professional trader with extensive global experience trading futures markets since 1991.