Visual Guide to Elliott Wave Trading

The Bloomberg Financial Series Visual Guide to Elliott Wave Trading is an essential resource for anyone who wants to gain a firm understanding of one of the most effective technical trading methods. Written by Wayne Gorman and Jeffrey Kennedy—two highly qualified Elliott wave traders—this reliable resource puts the authors' personal trading experiences in perspective. It provides practical guidance on how to use the Wave Principle to find trades, assess trades, enter trades, manage trades by raising or lowering protective stops, and exit trades. And while it doesn't present perfect-world examples—because, honestly, there are none—it offers a realistic look, warts and all, at how you can become a better Elliottician and a more consistently successful trader. Divided into three comprehensive parts, the Bloomberg Financial Series Visual Guide to Elliott Wave Trading opens with an informative introduction to the anatomy of Elliott wave trading. Part Two then provides practical examples that walk you step by step through the authors' thinking during a number of trades they have made in real life. It also presents hypothetical setups that you might encounter in your own market experience and shows how to handle them. Part Three rounds out this detailed discussion by going beyond the basics to address how you can effectively apply other technical indicators to your trading and how you can use Elliott wave analysis and option strategies to form a powerful trading combination. While there may be no one perfect way to trade, there are various ways to trade successfully using the Wave Principle as your primary discipline. This book will show you how. The Bloomberg Financial Series Visual Guides cover today's most relevant finance and trading topics in a comprehensive, yet easy-to-follow style. The content brings to life key concepts for finance professionals and truly lives up to the series' name by examining concepts in a highly visual way—all charts are in color and presented in a large format for ease of use. Other strong visual attributes include consistent elements that function as additional learning aids for the reader, such as: Key Points, Definitions, Step-by-Step, Do It Yourself, and Bloomberg Financial Series Visual Guides functionality. And for e-reader users, the Bloomberg Financial Series Visual Guides are available as enhanced e-books offering special features, like a Test Yourself section where you can test your newly honed knowledge and skills. The enhanced e-book versions also include video tutorials and special pop-up features. They can be purchased wherever e-books are sold.

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

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.