Module 4

Putting It All Together

 Learning Multiple Time Frame Analysis
Objects
Daily Trading Journal

© 2012 FX Trader’s EDGETM All Rights Reserved

Finish every day and be done with it. You
have done what you could. Some blunders
and absurdities no doubt have crept in; forget
them as soon as you can.

Tomorrow is a new day; begin it well and

serenely and with too high a spirit to be
cumbered with your old nonsense.
This day is all good and fair. It is too dear, with its
hopes and invitations, to waste a moment on
yesterday’s.

Ralph Waldo Emerson

© 2012 FX Trader’s EDGETM All Rights Reserved
MULTIPLE TIME FRAME ANALYSIS

GOALS

 Learn the steps required to analyze a market

using multiple time frame analysis.

 Learn to use the Daily Trading Journal - a

daily checklist and daily trade plan - for trading
success.

© 2012 FX Trader’s EDGETM All Rights Reserved

MULTIPLE TIME FRAME ANALYSIS

Double Threes
Triple Threes
Triangles
Consolidation Patterns

A
C
Monthly Charts E

Weekly Charts
Daily Charts B D

© 2012 FX Trader’s EDGETM All Rights Reserved

DAILY TRADING JOURNAL

 Do your “trading work” to determine where you are in the

wave count

 Review your work with new information

 Trading Journal = Checklist + Trade Plan

 Remove the emotion and trade the plan

 Choose a time frame

 Short-term intraday (15-minute and hourly)

 Medium-term swing (hourly and daily)

 Long-term position (daily and weekly)

© 2012 FX Trader’s EDGETM All Rights Reserved

DAILY TRADING JOURNAL
Part A Checklist: Daily Chart

Currency/Date Levels Notes

General and daily trend  or 

News releases Expected vs. actual Note reaction

What are the actual

Daily support levels: levels? Print out your chart with
these levels on it when
S1, S2, S3 Look at barriers and done.
pivot points.
Daily resistance levels: Draw these levels on Keep the charts with
R1, R2, R3 your chart your journal
Fibonacci levels: Draw these levels on
38.2%, 50%, 61.8% the last swing move

© 2012 FX Trader’s EDGETM All Rights Reserved

DAILY TRADING JOURNAL
Part B Checklist: Daily Chart

Currency/Date Elliott Wave Patterns Notes

Point 0 – Wave 1 Determine the corrective Take notes on where each

Wave 2 Fibonacci retracement pattern: Zigzag? Double A-B-C leg retraced to and
levels: 50%, 61.8% zigzag? Triple zigzag? update it

Wave 3 targets:
Where are we in wave 3? We are long the greatest
1.618 times wave 1
Notice if it is extended or not. number of lots here
2.618 times wave 1

Determine the corrective

Wave 4 Fibonacci levels: pattern: Flat? Triangle?
Combo? Look for alternation of wave 2
38.2%, 50%
Be specific.

Wave 5 targets:
Is it a diagonal triangle? Is it
0.618 times wave 1
extended?
1.618 times wave 1
Look for the end of the trend
0.618 to 1 times waves 1-3

© 2012 FX Trader’s EDGETM All Rights Reserved

DAILY TRADING JOURNAL
Part C Checklist: Hourly Chart

Long/ Short/
Currency/Date Above Below Notes

Continuation chart patterns: Put an X

Put an X
Triangles, bull and bear flags (zigzags) in this
in this
column What pattern is it?
Reversal chart patterns: column if
if
Diagonal triangles (wedge), 1-2-3 tops/bottoms, etc. bullish
bearish

Moving averages (MAs):

8, 13, 21, and 34-day Fibonacci EMA filter; 55 and 89-day Where did the 8/13
EMAs Put an X Put an X cross the 21/34?
in this in this
Oscillators: Are there
column if column
5/34/5 Awesome Oscillator MACD, RSI, or momentum divergences?
long if short
indicator Type of candle?
Candlestick reversal patterns

Fibonacci levels on last leg of move: Draw levels on chart

38.2%, 50%, 61.8% retracements with tool

Elliott Wave count: 1, 3,

2 and 4 Comments?
Count sub-waves and 5

© 2012 FX Trader’s EDGETM All Rights Reserved

DAILY TRADING JOURNAL
Part D Checklist: 15-Minute Chart

Long/ Short/
Currency/Date Above Below Notes

Continuation chart patterns: Put an X

Put an X
Triangles, bull and bear flags (zigzags) in this
in this
column What pattern is it?
Reversal chart patterns: column
if
Diagonal triangles (wedge), 1-2-3 tops/bottoms, etc. if bullish
bearish

Moving averages (MAs):

8, 13, 21, and 34-day Fibonacci EMA filter; 55 and 89-day Where did the 8/13
EMAs Put an X Put an X cross the 21/34?
in this in this
Oscillators: Are there
column column
5/35/5 Awesome Oscillator MACD, RSI, or momentum divergences?
if long if short
indicator Type of candle?
Candlestick reversal patterns

Fibonacci levels on last leg of move: Draw levels on chart

38.2%, 50%, 61.8% retracements with tool

Elliott Wave count: 1, 3,

2 and 4 Comments?
Count sub-waves and 5

© 2012 FX Trader’s EDGETM All Rights Reserved

DAILY TRADING JOURNAL
Part E Trade Plan: Hourly/15-Minute Chart

Currency/Date Trade 1 Trade 2 Notes

Analysis and trade recommendations (follow the Look to buy the wave ii retracement of wave i between 115.66
Elliott Wave trading map) (50%) and 115.14 (61.8%)

Note: We are
Entry strategy: starting a wave (C)
Position size (# of lots) 5 down of a wave ii
5 lots long above
(A) (B) (C)
Long or short long at sub-wave (1) of 
correction—look at
Price 115.66/14 the 15-minute chart
for entry

Exit strategy:
Sell 9 lots at 113.42
Stop-loss (# of lots and price) (stop moves to
Sell 7 lots at top of Keep 2 lots long
Profit level 1 (# of lots and price) bottom of (i) point 0)

Profit level 2 (# of lots and price)

Pip and $ profit/loss

Lessons learned

© 2012 FX Trader’s EDGETM All Rights Reserved

 Module 1: Elliott Basics Module 2: Impulsive Patterns
 Wave rhythms, pattern or form  Impulsive wave structures
 Fibonacci  Diagonals and measuring objectives
 Wave personalities for impulsive waves

 Wave counting  Finding the end of a trend

Module 3: Corrective Patterns Module 4: Putting It All Together

 Corrective sequences and alternation
 Elliott Wave Trading Map
 Zigzags, flats, triangles
 Trading Journal
 Double and triple threes combined
patterns

© 2012 FX Trader’s EDGETM All Rights Reserved

 Module 4: Putting It All Together

 Elliott Wave Trading Map  Maximizing profit potential

 Money management  Putting It All Together

 Rules to enter and exit  Daily Trading Journal

positions
 Checklist
 Multiple time frame set-ups  Trade Plan

© 2012 FX Trader’s EDGETM All Rights Reserved

 Applying Your Knowledge

 Practice and study means labeling the charts every day.

 It is often possible to make money even when you are in error.

 Knowledge can prepare you psychologically for the ups and

downs.

© 2012 FX Trader’s EDGETM All Rights Reserved

YOUR ELLIOTT WAVE SOLUTION

You have been given a within which you have the

answers to many You have learned the

and can now fit the pieces of the Elliott together.

Learning to surf the is like learning to ride a

You probably feel like you just climbed a Keep practicing

and you will hit the over and over again. Happy trading!

© 2012 FX Trader’s EDGETM All Rights Reserved

 End of Learning Object
Continue on to the Quiz

© 2012 FX Trader’s EDGETM All Rights Reserved

 Module 4 Learning Object 2 Quiz

© 2012 FX Trader’s EDGETM All Rights Reserved

 Module 4 Learning Object 2 Quiz

© 2012 FX Trader’s EDGETM All Rights Reserved

 Module 4 Learning Object 2 Quiz

© 2012 FX Trader’s EDGETM All Rights Reserved

 Module 4 Learning Object 2 Quiz

© 2012 FX Trader’s EDGETM All Rights Reserved

 Module 4 Learning Object 2 Quiz

True or False: If wave 4 is a reverse symmetrical triangle, each sub-wave is

most commonly 0.618 times the length of the previous alternative sub-wave.

a) True
b) False

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