econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 17 August 2016

When Does A Forecast Become A Trade?

from Elliott Wave International

Learn why it's important to wait for confirming price action before pulling the trigger. Jeffrey Kennedy, the editor of our popular Trader's Classroom educational service, weighs in on how you know when it's time to enter a trade. Register below for free daily video lessons that will teach you to find - and act on - trade setups in your own charts.

[Editor's Note: A text version of the video is below.]

Alexandra Lienhard: When does analysis become actionable? That's a question many ask themselves when analyzing and trading financial markets. To answer that question, I've got Jeffrey Kennedy joining me today. Jeff is the editor of Elliott Wave International's popular Trader's Classroom educational service.

Jeff, you recent published a Trader's Classroom lesson discussing the importance of waiting for confirming price action before entering a trade. Something you often tell your subscribers is that once you finish your analysis, you need to take off your analyst hat and put on your trader hat. But for many, perhaps easier said than done! So Jeff, how do you know when analysis becomes actionable?

Jeffrey Kennedy: Well, simply put, when you have enough evidence. For example, if you're counting a move to the downside as a counter-trend price move, say specifically a zigzag, it's going to be a 5-3-5 pattern typically contained within parallel lines. That's your foundation, that's your core. What you need to do next is simply wait. Wait for confirming price action because if your analysis is indeed correct, prices indeed will respond exactly the way you foretasted them to. So what sometimes I do is I'll actually wait for example a bullish engulfing pattern on the heels of an A-B-C decline to really provide additional evidence of the original forecast and then that's when I begin to take action. Simply put, again it goes all the way back to evidence, price evidence.

Alexandra: And the example you just spoke of actually reminds me of a section in your book, The Visual Guide to Elliott Wave Trading. You have a portion where you go through the 5 core Elliott wave patterns and offer guidelines for entering a trade upon the completion of each pattern. Can you take me through a conservative guideline on how to enter a trade upon completion of one or two of the core patterns?

Jeffrey: Well, there are 5 core Elliott wave patterns: the impulse wave, the ending diagonal, the zigzag, the flat and the triangle. In The Visual Guide to Elliott Wave Trading book I outline specific guidelines on how to enter a trade following each pattern. Just for an example, on the heels of a zigzag, a 5-3-5 pattern, A-B-C, I typically like wait for prices to exceed wave B extreme before actively looking for say a buyside trade setup. If we were working for example a flat pattern, then typically my confirmation point is that I want to see prices exceed the extreme of wave 4 of C before aggressively looking to take action.


Alexandra: And those are examples of how to enter a trade following the completion of two of the core patterns, but you go through many more in your book, The Visual Guide to Elliott Wave Trading, which as a side note, is a great read for any analyst or trader who are interested in learning how to spot high-confidence trade setups for themselves. Jeff, as always, it's been great to chat with you. Thanks for talking with me today.

Jeffrey: My pleasure Alex, any time.

Alexandra: If you analyze and trade financial markets and haven't read The Visual Guide to Elliott Wave Trading -- you should. Using more than 200 charts and 20 market examples, Jeffrey Kennedy and his co-author Wayne Gorman teach you how to identify high-opportunities trade setups in your own charts. Best of all, you get this book free when you subscribe to Jeff's Trader's Classroom educational service.


Learn "The 4 Best Elliott Waves to Trade -- and How to Trade Them" -- FREE.

Join Trader's Classroom editor Jeffrey Kennedy August 17 - 23 for free daily video lessons that will teach you to find -- and act on -- trade setups in your own charts. Learn which waves offer the best trade setups, how to set price target with Fibonacci and more.

Register now, free -- get instant access

This article was syndicated by Elliott Wave International and was originally published under the headline When Does a Forecast Become a Trade?.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Expected Effects of Petitions to Improve the Monetary System
Energy and Falling Productivity
News Blog
October 2016 Economic Forecast: Outlook Insignificantly Declines But Little Economic Strength Entering 4Q2016
1 Minute. 34 Seconds. In The U.S., That's All It Takes To Register To Vote. A Single Registration Lasts A Lifetime Of Elections. We've Made It Easy For You Here: Http://g.co/elections/134
Durable Goods New Orders Unchanged in August 2016
90% Rally In Sugar Prices Since Late 2015
U.S. Real Wage Growth: Slowing Down With Age - Part 2 Of 2
Infographic Of The Day: Four Tips To Grow Wealth
Early Headlines: Asia Stocks Down, Yen Rises, Oil Soft, Wells CEO Gives Up Bonuses, Trump Didn't Want To Embarass Clinton, US Asset Bubbles, US Crime Rates Falling And More
What is Democracy, Anyway?
Transcript Of Elizabeth Warren Questioning Wells Fargo CEO John Stumpf
Documentary Of The Week: Elizabeth Warren Indictment Of Wells Fargo
Clinton Wins Round One
Why Alzheimer's Research Is Failing To Hit Treatment Targets
Voters Still Distrust Both Presidential Candidates
Investing Blog
Banks Of Absurdity
Investing.com Technical Summary 27 September 2016
Opinion Blog
Trump Stumped In First Debate With Clinton - Will It Cost Him?
Why All Banks Should Be Federally Owned
Precious Metals Blog
War On Cash Turns To $20, $50, And $100 Bills
Live Markets
28Sep2016 Pre-Market Commentary: Wall Street Flat Again This Morning, Crude Prices Rise, US Dollar Down And Prospects Are Dim To Cut Oil Output, GS Says Crude Prices Going Down No Matter What
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government



Crowdfunding ....






























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved