Mastering Elliott Wave Principle E-Book

Constance Brown

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Bloomberg Professional
• Sprache: Englisch

Seitenzahl: 166

Veröffentlichungsjahr: 2012

Beschreibung

An innovative approach to applying Elliott Wave Principle By convention, most Elliott Wave Principle (EWP) practitioners focus on individual market price movement. Connie Brown has a global reputation of developing analysis that focuses on the integration of global markets. In a two book series you will be taken through the steps to master the global cash flows of today's financial markets. The approach found in this first book differs from the traditional view of EWP because it shows you how geometry and the use of simple boxes drawn within a trend will guide you away from the common complaint of subjectivity, thereby making smarter trades of higher probability. While EWP can be a challenging topic, the structure of this book eases you into the analysis principles. With Mastering Elliott Wave Principle you are guided step-by-step through the learning phases of Elliott Wave analysis and then your understanding is further challenged through self-examination. The preliminary coaching unravels common misunderstandings that sabotage the beginner. You will discover how price swings and waves are not the same. Elements of balance and proportion are mathematical concepts taught through geometry and not subjective. These basic skills establish a foundation that allow beginners to understand what to expect from their level of skill. There are three distinct levels of skill that all masters of the EWP have learned. Now there is a series to guide your understanding at each skill level so you can develop a working knowledge of how to define market positions around the world in short or long term time horizons. Bring your biases, bring your past concerns and discover how this breakthrough and original approach to teaching the Wave Principle can help you. * Traders, from beginners to advanced, can use this book to become proficient in the Elliott Wave Principle * Contains practice charts to compare your understanding and skill level with follow-up discussions of how you may have differed based on the results from twenty years of coaching

Leseprobe

Contents

Acknowledgments

Introduction

Chapter 1: Using the Elliott Wave Principle to Evaluate Mass Psychology

Geometric Proportion in Market Data

Chapter 2: The Patterns That Describe Trending Market Movement

Impulse Waves Create Market Trends

How to Label a Specific Price Pivot

Using Fewer Bars to Represent Complete Impulse Waves

Working with Impulse Waves in Strong Trends

Termination Diagonal Triangles: An Introduction

Chapter 3: The Basic Patterns That Describe Corrective Market Movement

How to Examine Corrective Price Movement

A Zigzag Corrective Pattern

A Flat Corrective Pattern

An Expanded Flat Corrective Pattern

The Triangle Corrective Patterns

Chapter 4: Diagonal Triangles (Wedges)

Termination Diagonal Triangle Pattern

Leading Diagonal Triangle Pattern—Type 2

Chapter 5: A Summary with Study Flash Cards for Patterns, Rules, and Guidelines

Study Flash Cards for the Basic Patterns

A Summary of Rules and Guidelines

A Table of Degree Labels and Names

Beginner Level: Practice Examination

Beginner Level: Final Examination

Exercise Appendix

About the Author

Index

Since 1996, Bloomberg Press has published books for financial professionals on investing, economics, and policy affecting investors. Titles are written by leading practitioners and authorities, and have been translated into more than 20 languages.

The Bloomberg Financial Series provides both core reference knowledge and actionable information for financial professionals. The books are written by experts familiar with the work flows, challenges, and demands of investment professionals who trade the markets, manage money, and analyze investments in their capacity of growing and protecting wealth, hedging risk, and generating revenue.

For a list of available titles, please visit our Web site at www.wiley.com/go/bloombergpress.

Books by Constance Brown

Aerodynamic Trading (1996)

All About Technical Analysis (2002)

The Illustrated Guide to Technical Analysis Signals and Phrases (2004, e-book only)

Technical Analysis Demystified: A Self-Teaching Guide (2007)

Breakthroughs in Technical Analysis: New Thinking from the World’s Top Minds (2007, Edited by David Keller)

Fibonacci Analysis (2008)

Technical Analysis for the Trading Professional 2nd Edition (2011)

Mastering Elliott Wave Principle: Elementary Concepts, Wave Patterns, and Practice Exercises (2012)

Advanced Elliott Wave Analysis: Complex Patterns, Intermarket Relationships, and Global Cash Flow Analysis (to come)

Copyright © 2012 by Constance Brown. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Charts by Market Analyst 6, Copyright 1996–2011.

Charts created using TradeStation © TradeStation Technologies, Inc., 2001–2011. All rights reserved. No investment or trading advice, recommendation, or opinion is being given or intended.

Figure 5.7 © Robert R. Prechter, Jr.

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Library of Congress Cataloging-in-Publication Data:

Brown, Constance M.

Mastering elliott wave principle : elementary concepts, wave patterns, and practice exercises / Constance Brown.

p. cm. — (Bloomberg financial series)

Includes index.

ISBN 978-0-470-92353-5 (cloth); 978-1-118-23515-7 (ebk); 978-1-118-22130-3 (ebk); 978-1-118-25977-1 (ebk)

1. Elliott wave principle. 2. Speculation. 3. Stocks. I. Title.

HG6041.B748 2012

332.63'2042—dc23

2011046138

An ocean travelerhas even more vividly the impression that the ocean is made of waves than that it is made of water.

—Sir Arthur Stanley Eddington in a lecture at the University of Edinburgh, March 1927

Acknowledgments

I would like to express my sincere appreciation to the team at John Wiley & Sons: Kevin Commins, Meg Freeborn, and Stacey Fischkelta. The subject of the Elliott Wave Principle presents several unique challenges. The fractal nature of the method carries a message in charts that reflects on the bigger picture of the market in discussion. Therefore timing was an issue for the manuscript. I would also like to acknowledge and thank the efforts of the creative team.

There is no topic more difficult to edit as a number within a chart could mean a point to help focus the reader’s attention, or it could be a critical number within a larger wave interpretation. The editorial team has helped us all by allowing me to use quote marks to define the start and end of wave notations. In practice this has helped my followers find it a little easier to read the unique dialog that develops within the analysis of wave patterns.

A special acknowledgment must be given to Robert Prechter, Jr., who saved this analysis method from obscurity. The work of R.N. Elliott might have been lost had it not been for his efforts. I once analyzed the S&P 500 market throughout the trading day before a real-time global audience for Elliott Wave International. It was the last step I needed to build my confidence that I could step out on my own and start my own company and Hedge Fund in 1996.

I cannot let it be unsaid that all eight of my books can be traced back to the confidence and guidance of Stephen Isaacs with Bloomberg Press. My loyalty to him explains the multiple publishers I have worked with over the years.

Introduction

After 20 years of experience helping other traders become more confident in how they apply the Elliott Wave Principle, I know how difficult it can be for many people. But over the years these people have helped me evolve my way of teaching this subject so that even the most challenged may finally see markets move in repeating fractal price patterns.

Why This Teaching Approach Is Different