The Ultimate Trading Guide

The Set-Ups or the Big Picture 8

Trading versus Investing 8

The Ultimate Timing Tool for All Markets 9

Technology Revolution 9

Stages of Market Action 10

How to Make Money with This Theory 19

Case Study of Trading Rules 22

To Trade or Not to Trade 25

Conclusion 26

Note 27

Chapter 2

Practical Applications of the Elliott Wave Theory 28

Targets for Major Movements 30

Corrective Waves or Phases 31

Case Study in Crude Oil 33

How to Trade A or ABC Corrections to a Thrust 34

Trading Plan 35

Other Works on Cycles 36

Summary 36

Chapter 3

Bar Charts and Their Forecasting Ability 37

How to Use Short-Term Patterns for Profit 39

Entry Techniques 43

System Development Based on Closing Prices 43

Three-Day Equilibrium Reverse 55

Pattern Gap 59

Hook Closing 60

Narrow Range Bars 64

Trading the Narrow Ranges 68

Trading the Wide Range Bar 68

Buy Zones 69

Stop Point 70

Taking Profits 71

Anticipation 71

Time Breakout Rule 72

Gap Higher/Low Openings 7-1

Chapter 4

Channel and Trendline Trading 76

Trend Lines and Parallel Movements 76

Trading the 0-2 Line 78

Trendline and Four-Close System (TL4C) 80

Trend Channel System 81

Chapter 5

Swing Trading 33

Swing Charts 83

Anticipation 86

Move Ending 87

Pullback Buys 87

Action and Reactions 88

Preliminary Demand 88

Time and Space 89

Sell Tops after a Trend Change 89

Three Bar Rallies 90

Holding Gain and Rally from Support 91

Setups for Trend Change 92

Trend Continuation 94

Three Drives to a Bottom 95

Support/Resistance Zones 95

Time and Price Projections 97

Trend 99

First Day in Rally 100

Chapter 6

Patterns 101

Opening Range Breakouts 102

Trend Up Confirmed 104

Spring Reversal Pattern 105

Upthrust Reversal Pattern 106

Yum-Yum Continuation Pattern 108

L Formation and Reverse L 109

Double Tops and Bottoms 110

Small Morning Tails 111

Clear Out Patterns 114

Overlapping and Non-Overlapping Bars 114

Two-Day Intersection 116

Channel Trading Systems 116

The Pullback 121

High of Low Bar for Buying/Low of High Bar for Selling 123

Three Bars Up/Down 124

Dynamite Triangle 125

Narrow Range/Wide Range 126

Two-Day Flip (2DF) 127

Tight Formation Breakout 128

The Important of Exits 128

Use of Tools in Trading the S&Ps 134

Chapter 7

Drurnmond Geometry and the PLdot:

An Introduction to the Fundamentals 139

What is Drumnond Geometry? 139

Conclusion 152

Chapter 8

Introduction to Mechanical Trading Systems 153

Why Use a Trading System? 155

Throw Those Ads Away 157

Should I Buy a Trading System? 159

Myths and Facts Concerning Trading Systems 160

Conclusion 163

Chapter 9

Where to Start 164

Hardware 164

Software 164

Data 166

Indicators 171

Five Approaches Used by the Best Trading Systems 185

Anatomy of a Trading System 185

Conclusion 206