Visual Guide to Elliott Wave Trading

[Pages:29]Visual Guide to

Elliott Wave Trading

Since 1996, Bloomberg Press has published books for finance 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 finance 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.

Books in the series include:

Visual Guide to Candlestick Charting by Michael Thomsett Visual Guide to Municipal Bonds by Robert Doty Visual Guide to Financial Markets by David Wilson Visual Guide to Chart Patterns by Thomas N. Bulkowski Visual Guide to ETFs by David Abner Visual Guide to Options by Jared Levy Visual Guide to Elliott Wave Trading by Wayne Gorman and Jeffrey Kennedy

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Visual Guide to

Elliott Wave Trading

Wayne Gorman Jeffrey Kennedy

Foreword by Robert R. Prechter, Jr.

Cover design: C. Wallace. Cover images: Waves by Peter Firus/iStockphoto, charts courtesy Wayne Gorman and Jeffrey Kennedy.

Copyright ? 2013 by Elliott Wave International, Inc. All rights reserved.

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

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at . Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at .

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Library of Congress Cataloging-in-Publication Data:

Gorman, Wayne.

Visual guide to Elliott Wave trading / Wayne Gorman, Jeffrey Kennedy ; foreword by Robert R. Prechter, Jr.

pages cm.--(The Bloomberg financial series)

Includes index.

ISBN 978-1-118-44560-0 (paperback); ISBN 978-1-118-47953-7 (ebk);

ISBN 978-1-118-47950-6 (ebk); ISBN 978-1-118-47954-4 (ebk); ISBN 978-1-118-47951-3 (ebk);

ISBN 978-1-118-75405-4 (ebk); ISBN 978-1-118-75416-0 (ebk)

1. Speculation. 2. Stocks. 3. Elliott wave principle. I. Kennedy, Jeffrey (Business writer) II. Title.

HG6041.G593 2013

332.64'5--dc23

2013005664

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

Contents

How to Use This Book vii Foreword ix Acknowledgments xi Introduction xiii Disclaimer xv

Part I: Trade Setups

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

1

Chapter 1: The Anatomy of Elliott Wave Trading

Jeffrey Kennedy

Part II: Trading Examples

Chapter 5: Using Ending Diagonals to Trade Swift and

3

Sharp Reversals

125

Jeffrey Kennedy on DJIA, BSFT, SLW, and TCK Wayne Gorman on the euro

19

Part III: Going Beyond Elliott Wave Patterns

155

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

Chapter 6: Applying Technical Indicators

157

Wayne Gorman on silver and robusta coffee

Jeffrey Kennedy on CREE, WMT, and WYNN

v

vi Contents

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

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