Category Archives: Free Stuff

Announcing Trader Education Week – a Free Event to Help You Learn to Spot Trading Opportunities

Dear Trader,

You have an opportunity to spend the next week learning how you can spot high-confidence trade setups in the charts you follow every day.

Elliott Wave International (EWI) is hosting a free Trader Education Week, October 2-9. Register now and get instant access to free trading resources — plus you’ll receive more lessons as they’re unlocked each day of the event.

Jeffrey Kennedy, EWI analyst and one of the world’s foremost market technicians, has taught thousands how to improve their trading through his courses, subscription services and as an adjunct professor of technical analysis at Georgia Tech University. Now you have the opportunity to be a student in his online classroom, as he takes complex technical methods and tools and breaks them down so that you can apply them to your trading immediately.

Don’t miss this opportunity to learn how to spot trading opportunities in the markets you follow.

Register today and get your first 4 free trading resources immediately, plus we’ll alert you to valuable new resources unlocked every day beginning October 2.

Register for Trader Education Week — It’s FREE!

Regards,

Alan

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

(Video) Top 3 Technical Tools Part 3: MACD

(Video) Top 3 Technical Tools Part 3: MACD
Enhance your trading confidence with a 2-minute lesson on how to combine Moving Average Convergence Divergence with other technical tools.

By Elliott Wave International

“Guessing or going by gut instinct won’t work over the long run. If you don’t have a defined trading methodology, then you don’t have a way to know what constitutes a buy or sell signal. Moreover, you can’t even consistently correctly identify the trend.”

-Jeffrey Kennedy

Jeffrey Kennedy is an accomplished teacher and a Senior Analyst here at EWI. Yet he often says that the Wave Principle alone is not a trading methodology. It does not tell you how much trading capital you can afford to risk, or specific guidance about which entry or exit levels are best suited for your trading style or where to set your protective stop.

Kennedy also says that along with risk management and emotional discipline, the right technical tools are a vitally important part of supporting your wave count.

To enhance trading confidence, Jeffrey’s 3 favorite technical
tools are Japanese candlesticks, RSI, and MACD. (read Part
1 on Japanese Candlesticks
and Part 2 on RSI ). Today’s lesson shows you how MACD can help identify trading opportunities with an example from USDCAD.

This 2-minute video and overview of MACD are adapted from Jeffrey’s Elliott Wave Junctures educational service (which empowers subscribers with information on nearly every aspect of trading. Try it risk-free for 30-days >> ).


Moving average convergence divergence (MACD) is a momentum indicator developed by Gerald Appel. It consists of two exponential moving averages, the MACD line and Signal line. The difference between these two lines yields an additional indicator, MACD Histogram.

Since these studies evaluate momentum, they work optimally in trending markets. When combined with reversal candlestick patterns, MACD and MACD Histogram can increase confidence in these patterns as well as continuation of the larger trend.

MACD divergence occurs when prices move one way and MACD moves the other. Bearish divergence forms when prices make new highs and MACD does not. Conversely, new price lows without lower MACD readings is bullish divergence. These conditions aid traders in identifying potential changes in momentum and trend.

MACD is constructed using two lines referred to as the MACD line and the Signal line.

When the MACD line appears to penetrate the Signal line, but fails to do so, a hook forms. The significance of a hook is that it coincides with countertrend price moves.

MACD is excellent technical tool provided you know how to use it and what to look for.


Learn the Best Technical Indicators for Successful Trading

This free report from Elliott Wave International will teach you how to incorporate technical indicators into your analysis to improve your trading decisions.

You’ll learn which technical indicators are best for analyzing chart patterns, which are best for anticipating price action, and which are best for spotting high-confidence trade setups. You’ll also learn how technical indicators can be used to complement Elliott wave and other technical methods.

Get your technical indicators report now >>

This article was syndicated by Elliott Wave International and was originally published under the headline (Video) Top 3 Technical Tools Part 3: MACD. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

(Video) Top 3 Technical Tools Part 2: Relative Strength Index (RSI)

(Video) Top 3 Technical Tools Part 2: Relative Strength Index (RSI)
EWI senior analyst Jeffrey Kennedy shows you how to identify quality trade setups with supporting technical indicators.

By Elliott Wave International

“There are many different forms of technical analysis. A completed Elliott wave pattern supported by additional evidence allows for more confident forecasts and higher probability trades.”

-Jeffrey Kennedy

Trader and technical analyst Jeffrey Kennedy has more than 25 years of experience using with the Elliott Wave Principle. To support his Elliott wave analysis, Jeffrey says that his 3 favorite technical tools are Relative Strength Index (RSI), MACD, and Japanese candlesticks.

This 3-part series includes Jeffrey’s practical lessons and proven techniques to support his wave counts (read Part 1 here >>). Today’s video clip shows you how RSI and range rules can help identify trading opportunities: Part 3 will cover MACD.

Jeffrey’s second lesson, excerpted from his Elliott Wave Junctures educational service, gives an overview of RSI followed by a video example.


Buying pullbacks in uptrends and selling bounces in downtrends are great ways to trade trending markets.

Developed by J. Welles Wilder, Jr. and presented in his 1978 book, “New Concepts in Technical Trading Systems,” RSI measures the strength of a trading vehicle by monitoring changes in closing prices and is considered a leading or coincident indicator. Andrew Cardwell popularized RSI as a trading tool by introducing the concept of range rules.

The theory behind range rules is that countertrend price action in trending markets has specific momentum signatures. RSI, for example will find support within roughly the 50-40 region when pullbacks in uptrends occur. Conversely, when bounces develop in downtrends, RSI will meet resistance in the 50-60 area.

Taking the path of least resistance is a benefit of trading in the direction of the trend. Moreover, the use of RSI and application of Andrew Cardwell’s range rules help identify when a trader can rejoin the trend.


Learn the Best Technical Indicators for Successful Trading

This free report from Elliott Wave International will teach you how to incorporate technical indicators into your analysis to improve your trading decisions.

You’ll learn which technical indicators are best for analyzing chart patterns, which are best for anticipating price action, and which are best for spotting high-confidence trade setups. You’ll also learn how technical indicators can be used to complement Elliott wave and other technical methods.

Get your technical indicators report now >>

This article was syndicated by Elliott Wave International and was originally published under the headline (Video) Top 3 Technical Tools Part 2: Relative Strength Index (RSI). EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Top 3 Technical Tools Part 1: Japanese Candlesticks

EWI senior analyst Jeffrey Kennedy shows you how to identify quality trade setups with supporting technical indicators.

By Elliott Wave International

“I always will be an Elliottician, but other technical tools have merit and are indeed worthwhile: they allow me to build a case, build a more confident reason for making a forecast and for taking a trade; making a trading decision.”

-Jeffrey Kennedy

I recently asked Elliott Wave International analyst Jeffrey Kennedy to name his 3 favorite technical tools (besides the Wave Principle). He told me that Japanese candlesticks, RSI, and MACD Indicators are currently his top methods to support trade setups.

In this 3-part series, we will share examples of how to use these 3 tools to “build a case” in the markets you trade. These practical lessons allow you to preview how Jeffrey applies techniques with proven reliability to support his analysis.

We begin this first lesson with a basic candlestick-style price chart.

This is excerpted from Jeffrey Kennedy’s teachings. Follow this link to learn more about Jeffrey Kennedy’s educational trading service, Elliott Wave Junctures.


You may be familiar with an Open-High-Low-Close (OHLC) chart: comprised of vertical lines with small horizontal lines on each side. The top of each vertical line is the high and the bottom is the low. The small horizontal lines on either side represent the open and close for that period.

Here’s an example of a Japanese Candlestick chart:

Japanese candlestick charts employ the same data that OHLC price charts do except that the data is expressed differently. The real body is the range between the open and close, and appears as a small block. Shadows are the lines that extend upward and downward from this block, and represent the highs and lows.

Next, take a look at the chart below.

Two bearish candlestick reversal patterns that Jeffrey finds highly reliable are the Evening Star and the Bearish Engulfing Patterns. This weekly continuation chart for the Canadian Dollar combines a 20-period moving average to show that the trend is down — allowing you to focus on bearish reversal candlestick patterns to spot trading opportunities.

Jeffrey notes that “combining these reversal patterns with moving averages makes them even more dynamic because they focus your attention in the direction of the larger trend.”

Japanese Candlesticks begin our spotlight on Kennedy’s top 3 ancillary tools for trading with the Wave Principle. We’ll share parts two and three via how Kennedy uses RSI and MACD indicators to support his Elliott wave interpretation in coming weeks.


To learn more about these tools now, access our FREE 10-Lesson Trading Series, “How to Apply Some of the Most Powerful Technical Methods to Your Trading.”

You will gain access to an archive of lessons that includes a wealth of information: in-depth guidance and insight on the Elliott Wave Principle and other technical approaches. You’ll learn some of the best technical indicators for analyzing chart patterns, anticipating price action, and spotting high-confidence trade setups.

Learn how you can access your free lessons now >>

This article was syndicated by Elliott Wave International and was originally published under the headline Top 3 Technical Tools Part 1: Japanese Candlesticks. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Learn to Label Elliott Waves More Accurately

EWI Senior Analyst Jeffrey Kennedy shows you how to use momentum patterns to confirm your count

By Elliott Wave International

Are you looking for an easy way to improve your confidence as you analyze the charts you trade? Take a quick look at this chart (adapted from Jeffrey Kennedy’s December 26 Elliott Wave Junctures lesson) to see how divergence relationships help clarify your analysis.

According to Jeffrey, divergence relationships are easy to identify. Whenever prices make a new extreme, look for underlying indicators to move in the opposite direction. Specifically,

The momentum relationship most often seen in waves 3 and 5 is divergence. Bullish divergence forms when prices make a new low while an accompanying indicator does not. Conversely, bearish divergence occurs when prices register a new high while an accompanying indicator does not. Bullish and bearish divergences are common to waves A and C, just as they are waves 3 and 5.

Notice the bearish divergence between waves 3 and 5 in the daily price chart of Halliburton Company (HAL) — Prices reach a new high, yet the MACD indicator moves in the opposite direction:

Jeffrey notes that if you label an advance as a 5th wave move, and yet you do not see momentum divergence, that tends to argue for an extended 5th wave.

Next, at waves A and C, you can see an example of bullish divergence. Wave A bottomed at $32.90 in HAL and wave C ended much lower at $29.83. The histogram readings that correspond to waves A and C are -36.26 and -26.60, respectively.

Here’s another example of divergence between waves A and C in Akamai Technologies (AKAM).

Notice that wave C is lower in price than wave A. However, if you look at the MACD histogram, you’ll see that it registered a higher reading in wave C than it did in wave A, thus giving us a bullish divergence.

Understanding that Elliott waves demonstrate unique momentum relationships as well as price structure allows you to label waves more accurately and with greater confidence.


Learn to Use Technical Indicators to Improve Your Trading and Analysis

This is merely one chart example of how you can use technical indicators to strengthen your analysis. You can also learn about Moving Averages, one of Jeffrey Kennedy’s favorite indicators, in a Free 10-page eBook from Elliott Wave International.

Moving averages are one of the most widely-used methods of technical analysis because they are simple to use, and they work. Now you can learn how to apply them to your trading and investing in this free 10-page eBook. Learn step-by-step how moving averages can help you find high-confidence trading opportunities.

Improve your trading and investing with Moving Averages! Download Your Free eBook Now >>

This article was syndicated by Elliott Wave International and was originally published under the headline Learn to Label Elliott Waves More Accurately. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Don’t Expect the News to Tell You Where EUR/USD Is Going Next

Retrospective explanations of market moves don’t keep you ahead of the trend

By Elliott Wave International

On December 27, EUR/USD shot up as high as $1.3283. Forex news headlines were quick to comment:

“Dec 27 – The euro slightly extended gains against the dollar after strong U.S. new home sales data last month further lifted the market’s appetite for riskier currencies.”

But after EUR/USD hit that high, it promptly reversed and fell back down to the $1.3200 level, where it had been stuck all week.

You may ask: What happened to that “appetite for riskier currencies”?

Good question, and here’s the answer: That explanation came after the EUR/USD rally, not before.

See, it’s easy to fit the news to market action after the fact: Just grab the news story that best “explains” the move. But retrospective explanations don’t keep you ahead of the trend. To win in forex, you need forward-looking analysis, and you need it before the market moves.

On December 26, the editor EWI’s forex-focused Currency Specialty Service, Jim Martens, posted this comment on his Twitter feed:

EWI Forex Insider: @FX_ElliottWave
Now that we got the EUR rise we expected, the double zigzag rise from 1.3158 to 1.3256 leaves EUR/USD vulnerable to a decline.

Then, on the morning of December 27, Jim updated his Currency Specialty Service subscribers via this intraday forecast (excerpt):

EURUSD (Intraday)
Posted On: Dec 27 2012 10:01AM ET / Dec 27 2012 3:01PM GMT
Last Price: 1.3269
The overlapping rise and possible double top near 1.3309 could lead to a larger correction. A flat or triangle would lead to weakness…

And here’s the decline EUR/USD saw shortly after:

Note that neither of these two forecasts mentioned the news. And for good reason: The December 27 euro-bullish news would have had you buying EUR/USD all the way into the top.

Instead of the news, we at EWI look at objective Elliott wave chart patterns. That, and not the news, is what helps us to forecast the markets before they move.

We don’t always succeed. However, as you can tell from this example, our Currency Specialty Service delivers true forward-looking analysis. Get our forecast for the U.S. dollar plus 5 hidden market opportunities for 2013 in a brand-new FREE report >>


Free Report: 5 Hidden Market Opportunities for 2013

In this special 21-minute video report, EWI Senior Currency Strategist Jim Martens looks past the obvious — the “fiscal cliff,” the Fed, etc. — to give you a U.S. dollar forecast for 2013 that would astonish the mainstream experts. Jim then walks you through 5 precise Elliott wave “roadmaps” for 5 key FX market opportunities in the year ahead.

BONUS: You also get Jim’s new 5-minute video update featuring 2 major currency pairs.

All you need to access this video report is a FREE Club EWI profile.

Complete your free Club EWI profile now and get instant access to these special videos >>

Club EWI is the world’s largest Elliott wave community with more than 325,000 members. Membership is 100% free and includes free reports, tutorials, videos, special events, promotional offers and access to the valuable EWI Q&A Message Board.

This article was syndicated by Elliott Wave International and was originally published under the headline Don’t Expect the News to Tell You Where EUR/USD Is Going Next. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

EWI’s FOREX FreeWeek is now on: Get charts, analysis and forecasts for the dollar, euro, yen and more

Greetings,

Our friends at Elliott Wave International have just announced the start of their popular FreeWeek!

That’s where they throw open the doors for you to test-drive some of their most popular premium services — at ZERO cost to you.

You can access all the charts, analysis, videos and forecasts from EWI’s trader-focused Currency Specialty Service right now through noon Eastern time Wednesday, Oct. 24. This service is valued at $494/month, but you can get it free for one week only!

It is an exciting time of year for forex traders who are in the know:

  • There’s the upcoming Obama/Romney U.S. Presidential election
  • The “fiscal cliff” the U.S. might be standing on
  • And the ongoing European debt crisis

Wouldn’t you want to know where the currency markets are headed in the days and weeks ahead?

Don’t wait on “the fundamentals.” Elliott wave patterns are telling you — right now! — where the major forex markets should go soon. Find out now during EWI’s Forex FreeWeek!

Learn more and get instant access to EWI’s FreeWeek of FOREX analysis and forecasts now — before the opportunity ends for good.

Regards,

Alan

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

How Does a Trader Who Runs from Risk Achieve THIS Track Record?

Peter Brandt is the “Real McCoy”

By Elliott Wave International

In the late ’70s, Peter Brandt emptied his trading accounts several times. He’d lose a string of trades, then refund his account, then “wipe out” all over again.

But he persisted because he knew he was meant for a trading career. His determination paid off.

In 1982, a currency chart “sang a song” for Brandt. By that time he had saved his earnings and supplied his trading account with a healthy sum.

The currency trade worked out very well. After that trade, he believed he could call himself a competent full-time trader.

Eventually, Peter Brandt’s trading earned an annual 42% return over an 18-year period.

Did he achieve this by “swinging for the fences” on every trade? No. In fact, he believes that successful speculation requires strict risk-management.

One other message became clear when I recently called and spoke with Brandt: successful speculation is also about managing yourself.

Here’s an excerpt from our Q&A:

——————

Q: What’s the human factor and why is it so important to successful trading?

The biggest barrier to profitable trading is not the markets themselves. It’s not other traders. It’s not high frequency trading operations. It’s not the Wall Street trading machine out to get us. The biggest hurdle is ourselves. We have met the enemy, and the enemy is ourselves.

The human element comes into play immediately when an individual thinks he or she can make their living from trading. The human components that drive this mentality include pride, unrealistic expectations, wishful thinking, greed, disconnected hope.

If an aspiring trader can learn from and survive the mistakes of the first three to five years, they will finally figure out the real rules of the game…Most aspiring traders with four or five years of experience who know what they must do will readily agree that their real problem is actually doing what they must do. It is said that successful trading is an uphill run or upstream swim against human nature. How true!

Q. Risk management is very important to you as a trader, why? How do professional traders view risk differently from beginners?

I see this in two manifestations. First, professional traders expect to have losses — most lose more often than they win. They build losses into their processes and expectations. They factor losses into the equation.

Second, while the default expectation for professional traders is a losing trade, the default expectation of a beginner is for a winner. As a result, professional traders build aggressive risk management protocols into their trading operations.

One of the best traders I have ever known was a man named Dan Markey, who mentored me at the Chicago Board of Trade. He once told me that his job as a trader was as simple as liquidating every trade that closed at a loss. He focused on his losers. He ignored his winners.

Q: What steps did you take that led you to your successful track record of 42% over 18 years?

This is not easy to answer, mainly because I don’t want to give myself credit for any success I have achieved.

First, I didn’t need to make money from trading when I broke into futures. So that pressure was absent. I had income from several very large accounts. My proprietary trading started four years into my career in the markets.

Second, I had two very wise mentors. These were guys who told me about all the landmines I would encounter. They directed me to less risky paths. They were also very excellent traders and I could observe their habits.

Third, I stumbled across classical charting principles. Every successful trader has an approach that fits their personality, level of capitalization and risk tolerance. Some beginners never find a niche. I found a niche early on.

Fourth, I didn’t have my ego tied to every trade. I was able to take losses in stride.

Finally, I got lucky on a big score within the first two years of my proprietary trading. Now, people can say that luck is a process of a lot of things that come before it. But, luck is luck. I had a hunch and I bet a bunch — and I was right. I might have been wrong and the outcomes could have been very different.

I should also say that I’m a sequential thinker. For me that works because I go through the mental process of accounting for all the contingencies I can think of. If this happens, I’ve planned my response. If that happens, I’ve got my other response planned.


Learn more about Brandt — a veteran trader and one of a select few contributors to Bob Prechter’s Elliott Wave Theorist — in this exclusive FREE report:

Foundations of Successful Trading: Insights on Becoming a Consistently Successful Trader from Peter Brandt.

Whether you are an average investor, a novice trader, or an industry professional, you stand to benefit from what Peter Brandt has to say. You can learn more about Brandt and gain insights on his consistently successful approach to market speculation in this free 16-page excerpt from Part I of his book, “Foundations of Successful Trading.”

Download your free report and learn what leads to a lifetime of trading success >>

This article was syndicated by Elliott Wave International and was originally published under the headline How Does a Trader Who Runs from Risk Achieve THIS Track Record?. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.