DAY #09
1.主题
Bloomberg Visual Guide to Elliott Wave Trading.2013
2.摘要
Corrections generally move sideways and are often erratic, time-consuming, and deceptive.
Thus, it is emotionally exhausting to trade corrections, and the odds of executing a successful trade during this type of price action are low.
here is my most important analytical and trading rule: Let the market commit to you before you commit to the market. In other words, look for confirming price action.
Waiting for confirming price action allows traders to use an evidence-based approach and to focus their attention on higher- confidence trade setups.
The risk on a single trade should never exceed 1 to 3 percent of the total portfolio size.
Bottom line, on your way to becoming a consistently successful trader, you must realize that longevity is key.
A number of psychological factors that prevent traders from becoming consistently successful:
①.lack of methodology
②.lack of discipline
③.unrealistic expectations
④.lack of patience
The best hint I can give you about defining your trading methodology is this: If you can’t fit it on a 3" × 5" card, it’s probably too complicated.
The three essential parts of a trade are :
①.Analyzing Price Charts
②.Formulating A Trading Plan
③.Managing The Trade
Always ask first, “Do I see a wave pattern I recognize?”
From an Elliott wave perspective, price gaps form most often in the wave three position—especially in wave three of wave three—because that’s when prices are traveling far in a short period of time. Traditional technical analysts refer to this type of price gap as an acceleration gap.
Traditionally, technicians define price gaps as break- away, acceleration, and exhaustion.
From an Elliott wave perspective, you might experience :
①.a breakaway gap in wave three of wave one
②.an acceleration gap in wave three of wave three
③.an exhaustion gap in wave three of wave five
Remember the three phases of risk management during a trade: (1) lessen risk, (2) eliminate risk, and (3) protect open profits.
While an impulsive decline is unfolding, prior swing highs make suitable protective stops. From an Elliott wave perspective, these extremes tend to be second or fourth waves.
Did I trail my protective stops correctly or was I too aggressive or too conservative? My simple answer remains true: There is no right or wrong way to trade—only your way of trading.
Single-Bar Price Analysis :
By itself, this information seemed to be unimportant. But combined with the high and low of the day, which were .9192 and .9127, I could see that the daily close was above the 50 percent retracement of the daily trading range. If the bears were indeed in control of the market on April 14, then the close of the day would most likely have been in the bottom 20 percent or even 10 percent of the daily range, not above 50 percent.
If you do not already perform single- or multi- bar price analysis, I strongly recommend that you start doing so.
Understanding the relevance of the relationships among the open, high, low, and close are an integral part of technical analysis.
Use weekly price charts to determine trend, daily time frames to identify wave patterns, and intraday price charts to finesse entry and exit points of trades.
Golden Section
The beginning or end of wave 4 will often divide an impulse wave into the Golden Section (.618 and .382) or two equal parts(.500). This relationship is called a Fibonacci price divider.
For impulse waves, the strongest Fibonacci projections pertain to the manner in which wave 4 (beginning or ending) divides an impulse wave, when either wave 1 or wave 3 is not extended.
Trading lesson learned:
Most traders react to news, but they would be better off working with the wave pattern and completely ignoring the news.
That’s because newsworthy events normally lag market trends as opposed to leading them.
The best source of information about the future path for silver was the Elliott Wave Principle, because of the way it depicts mass psychology, the true driver of financial trends.
Crowd behavior results in patterned price movements. If you understand the pattern, you can predict the market.
It’s beneficial to start with the big picture and then work down to lower degrees for evidence to support your wave count before taking a position.
expanded flats often precede strong moves.
The best practice is to set a stop just beyond the point where the wave count becomes invalid.
However, setting stops using Elliott wave analysis is a function of both wave structure and personal risk tolerance.
In that case, traders have to pick a level that they’re more comfortable with.
More important, in a flat, wave C usually has a steeper slope than wave A.
If one of the subwaves of a triangle forms a triangle, it’s usually wave E.
The most advantageous situations occur when both the preferred wave count and the alternate wave count call for a move in the same direction.
3.心得感悟
波浪交易法三部曲
The three essential parts of a trade are :
①.Analyzing Price Charts——>图表分析——>根据五波推动浪或三波修正浪确定下一浪的多空方向
②.Formulating A Trading Plan——>计划制定——>从大周期到小周期分析波浪层级,定势+定位+定点
③.Managing The Trade——>管理交易——>依照RRR调整移动止损位或依照目标价位止盈
常用三级次波浪标注:
微浪==Minute wave ——> , [ii], [iii], [iv],[v]
小浪==Minor wave ——>1, 2, 3, 4, 5
中浪==Intermediate wave ——>(1), (2), (3), (4), (5)
波浪交易员眼里的缺口:
From an Elliott wave perspective, you might experience :
①.a breakaway gap in wave three of wave one——>突破缺口在1浪
②.an acceleration gap in wave three of wave three ——>加速缺口在3浪
③.an exhaustion gap in wave three of wave five——>衰竭缺口在5浪
两种分析工具:
①.Single-Bar Price Analysis——>进出场的中位触发点
②.Golden Section analysis——>黄金分割正推反推法
4.时间统计
昨日阅读5小时,累计445小时
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