Daily Trade Journal

from Module 4, video 2

DAILY TRADING JOURNAL

(Thomas Summary Sheet)

Part A Checklist: Daily chart

NOTE: When we look at the chart we are not only looking for Elliott Wave counts but also support
and resistance levels and key Fibonacci retracement and extension/projection levels.
Currency
General and daily trend

Levels
or

Notes

Use a 5 or 8 period versus a 13 period

moving average cross-over to determine
the general trend.

News releases
Review the news

Daily support levels:

S1, S2, S2
Daily resistance levels:
R1, R2, R3
Fibonacci retracement levels:
38.2%, 50%, 61.8%
Additional retracements that
analysts look at are: 0.236 and
0.786

Expected vs actual
Know what the daily releases are
and how they will impact the
market based on deviation from
market expectations.
Plot long term support levels.
What are the actual levels? Former
price lows? Pivot points?
Plot long term resistance levels.
Draw these levels on your chart.
Former price highs?
Draw these levels on the last
swing move.

When the news comes out note

the reaction.

Also draw your Fibonacci

extensions: 1.0, 1.618, 1.272
(square root of 1.618) Consider
using Fibo fans, circles or time
zones.

DAILY TRADING JOURNAL

Part B Checklist: Elliott Wave counts on Daily chart

NOTE: Determine where you are on the wave count on the daily chart and make your projections. Write it
down on the chart and on the checklist. For each leg determine what the measuring objective is and the
actual price reached. Depending where you actually are in the wave count will determine your next trade
using the Trading Map. This checklist provides the inputs to your Elliott Wave Trading Map.
As you are filling this checklist out you will also need to look at the hourly and 15 minute charts, as well, to
refine the wave counts.

Currency / Date
Find point 0, or the start of
wave 1.
Go through the 6 confirmations
and make sure at least 3 out of 6
confirm the end of the previous
trend..

Determine End of trend:

(from Module 2, Video 3)

1. Channeling to target
wave 5.
2. Projected price in the
target zone for wave 5
sequence and internal
sub-wave 5.
3. Divergence between wave
3 and 5 and a change in
direction of current
momentum.
4. Identify Reversal
Patterns:

Leading and ending

diagonals (wedges)
Broken trend lines
Double and triple tops
and bottoms (failed 5th
or 1-2.. when wave 2
corrects 100% of wave
1)
1-2-3 top or bottom

Elliott Wave Patterns

Notes

Head and shoulders

(wave 3-4-5-A-B-C)

5. 8, 13, 21, and 34 period

Fibonacci EMA filter.
6. Candlestick reversal
patterns

Look for the Fibonacci entry Determine the corrective

levels: (on hourly and 15 min pattern: zigzag? Double
charts)
zigzag? Triple zigzag?
Wave 2 Fibonacci
retracement levels 50%,
61.8%

Take notes on where each AB-C leg retraced and update

it. Look at the internal waves
to refine your entry.

Wave 3 targets:
1.618 times wave 1
2.618 times wave 1

We are long the greatest

number of lots here.

Wave 4 Fibonacci levels:

38.2, 50%
Wave 5 targets:
0.618 times wave 1
1.618 times wave 1
0.618 to 1 times waves 1-3

Where are we in wave 3?

When you are in wave 3 you
will be calculating how far it
has traveled relative to wave
1.
When it goes higher than
100% of wave 1 look for
1.618 times wave 1.
Then 2.618 times the length
of wave 1.
Notice if it is extended or not
(movement greater than
1.618 times wave 1 is an
extended wave 3.)
Determine the corrective
pattern: Flat? Triangle?
Combo? Be specific.
Is it a diagonal triangle? Is it
extended? Is it truncated?
Look for the end of the trend.
This is the determining point
for the end of the trend point
T for termination. This is
where you will take profits
and start looking to trade the
new trend.

Look for alternation of wave

2.
It is very important to
calculate the targets using the
5 wave sequence and the
internal sub-wave count.

DAILY TRADING JOURNAL

Part C Checklist: Hourly Chart (Indicators)

It is called Drilling Down when we go from the daily chart to the hourly chart. This is
what we call a Top Down Approach.
Currency / Date
Look at the hourly chart and take note of
Continuation chart patterns: (wave 2 & 4)
Bull and Bear Flags (Zigzags)
Triangles
Reversal chart patterns: (at end of wave 5)
Diagonal triangles (wedges)
1-2-3 tops and bottoms

Next, look at the moving average

crossovers:
8, 13, 21 and 34 period Fibonacci EMA
Filter; 55 and 89 EMAs can be useful to
add.
Oscillators: Look at the AO or MACD
momentum indicators. Look for divergence
between waves 3 and 5 signaling the end of
the trend.

Long /
Above
Put an X in
this column if
bullish
If its a
Continuation
Pattern of an
up trend.

Put an X in
this column if
long

Short /
below
Put an X in
this column
if bearish
If its a
Reversal
Pattern
We are
looking for
the trend to
turn
around.
Put an X in
this column
if short.

Notes
What pattern is it?
Draw the trend lines

Where did the 8/13 cross the

21/34?
Is there divergence?

If price is
above the
MAs.

If price is
below the
MAs.

Type of candle?

Also, notice the large hump in the AO and

MACD during the 3rd wave. When the
histogram comes back to the zero line it
means that the minimum requirements of
wave 4 have been met. And you are then
looking for a wave 5 move to complete the
sequence.
Candlestick reversal patterns: Look for
candlestick reversal patterns to give you a
clue of the end of wave 3 or wave 5.
Remember to use your Fibonacci tool to
draw the retracements on the last leg of the
move. This will tell you where you are on

Draw levels on chart with

tool.

the current move. Currency moves tend to

respect Fibonacci levels quite well.
38.2%, 50%, 61.8% retracements.
FINALLY Count your Elliott Waves.
Count the sub-waves

1, 3, and 5

2 and 4

Comments?

DAILY TRADING JOURNAL

Part D Checklist: 15-minute (Indicators)

Look at the same things as on the hourly chart, as follows:
Look for patterns and take notes.
Look for the EMA crossovers
Make a note whether you are long or short.
Look at oscillators for divergences.
Calculate retracements with Fibo too.
Currency / Date
Look at the hourly chart and take note of
Continuation chart patterns: (wave 2 & 4)
Bull and Bear Flags (Zigzags)
Triangles
Reversal chart patterns: (at end of wave 5)
Diagonal triangles (wedges)
1-2-3 tops and bottoms

Next, look at the moving average

crossovers:
8, 13, 21 and 34 period Fibonacci EMA
Filter; 55 and 89 EMAs can be useful to
add.
Oscillators: Look at the AO or MACD
momentum indicators. Look for divergence
between waves 3 and 5 signaling the end of
the trend. Also, notice the large hump in the
AO and MACD during the 3rd wave. When
the histogram comes back to the zero line it
means that the minimum requirements of
wave 4 have been met. And you are then
looking for a wave 5 move to complete the
sequence.
Candlestick reversal patterns: Look for
candlestick reversal patterns to give you a
clue of the end of wave 3 or wave 5.

Long /
Above
Put an X in
this column if
bullish
If its a
Continuation
Pattern of an
up trend.

Put an X in
this column if
long

Short /
below
Put an X in
this column
if bearish
If its a
Reversal
Pattern
We are
looking for
the trend to
turn
around.
Put an X in
this column
if short.

Notes
What pattern is it?
Draw the trend lines

Where did the 8/13 cross the

21/34?
Is there divergence?

If price is
above the
MAs.

If price is
below the
MAs.

Type of candle?

Remember to use your Fibonacci tool to

draw the retracements on the last leg of the
move. This will tell you where you are on
the current move. Currency moves tend to
respect Fibonacci levels quite well.
38.2%, 50%, 61.8% retracements.
FINALLY Count your Elliott Waves.
Count the sub-waves

Draw levels on chart with

tool.

1, 3, and 5

2 and 4

Comments?

DAILY TRADING JOURNAL

Part E Trade Plan Hourly and 15-minute chart

Part E is the TRADE PLAN. This is all about pulling the trigger. The checklist and
chart analysis is the research we do in order to be able to complete the trade plan. Once
we plan the trade, we trade the plan. Completing a trading plan enables us to remove
emotion from the trade and not get caught up in the psychology of wave personalities.
It is crucial to your success as a trader. On a personal note whenever I do not
complete a trade plan my trade is doomed to failure. Jody Samuels.
Recall the general and daily trend from the daily chart.
If they are both up it makes sense to look for a buy entry.
If they are both down it makes sense to look for a sell entry.
If they are mixed, take a smaller position.

Currency / Date
Analysis and trade recommendations
(follow the Elliott Wave trading map)
Entry strategy
Position size (# of lots)
Long or short
Price

Exit strategy:
Stop-loss (# of lots and price)
Profit level 1 (# of lots and price)
Profit level 2 (# of lots and price)

Trade 1

Trade 2

Trade 3

Look to buy the wave ii retracement of wave I between

115.66 (50%) and 115.14 (61.8%)
Note: We are
5
5 lots long above
starting a wave
Long at
wave (1) of (3)
(C) down of a
115.66/14
wave ii (A) (B) (C)
correction look
at the 15 minute
chart for entry.
Sell 9 lots at
(Stop moves to
113.42
bottom of (i) point Keep t lots long
Sell 7 lots at top
0)
of [3]

When the trade is over take note of the

pip profit and loss. Make notes about
lessons learned.
Define your entry strategy on the hourly chart and confirm price action on the 15 minute chart to enter the
trade.
Be clear about your entry requirements under the notes column.

Determine your exit strategy, stop loss and profit levels.

State in words what you expect to happen and how the market should behave. (Is it impulsive or corrective?)