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EWMasterclassSlideDeck 200601 120631
EWMasterclassSlideDeck 200601 120631
EWMasterclassSlideDeck 200601 120631
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▸ All slides, materials and toolkits will be provided after the session
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DIRECTIONAL
BIAS
RECO
PATTE N
FOREC ET
AST
MARK
GNITIO
RN
S CON
I N T I O N FIR
O
P INA T FRA MAT
M CTA ION
TE R L
Lesson Objectives
DIRECTIONAL
BIAS 1. Impulse vs Correction
RECO
2. 3 Market Scenarios
PATTE N
FOREC ET
AST
MARK
GNITIO
T S N
1 CON
FIR
RN
3. Impulse Move Psychology
O IN
P INA T I O FRA MAT 5. Why We Trade the Impulse
M CTA ION
R L
TE 6. Be Patient with Correction
3 Market Scenarios
▸ Impulse wave provides the recent directional bias
▸ With Impulses and Corrections, there are only 3 combinations in the market
3 Market Scenarios
▸ Impulse then correction
3 Market Scenarios
▸ Impulse then impulse
3 Market Scenarios
▸ Impulse then crawl
▸ Fundamental shift
▸ Sentiment shift
▸ Corrective move are usually choppy, and the price move tends to overlap one
another significantly
Sell
Sell
Sell
Sell
Sell
Sell
▸ Because in the shortest time possible, we are able to see our trades in
profits
▸ When you are trading in a correction, your emotions will be affected by the
ups and downs
▸ When there is a major economic data for that week, usually price will be
corrective leading into the news
▸ For example, NFP on Friday, the USD will be corrective for most of the week
leading into Friday
▸ When there is a major central bank decision, usually price will be corrective
leading into it as well
Lesson Objectives
DIRECTIONAL
BIAS 1. Impulse vs Correction
RECO
2. 3 Market Scenarios
PATTE N
FOREC ET
AST
MARK
GNITIO
T S N
1 CON
FIR
RN
3. Impulse Move Psychology
O IN
P INA T I O FRA MAT 5. Why We Trade the Impulse
M CTA ION
R L
TE 6. Be Patient with Correction
Lesson Objectives
PATTERN 1. Flag / Flat
RECOGNITION
BIAS L
2. Channel
CONFI
TIONA
FRACT ON
RMATI
2
3. Wave Expectation of Flag & Flat
DIREC
AL
4. Diagonal
2014 Mercedes
2015 Mercedes
2016 Mercedes
2017 Mercedes
2018 Mercedes
2019 ?
▸ If historically out of 100 times, there are 60 times the pattern repeat itself
▸ What would you do the next time you see a similar pattern?
Flag / Flat
Flag / Flat
Flag / Flat
Flag / Flat
Channel
Channel
Channel
Channel
1 3
1 3
3
1
3
1
Diagonal
Diagonal
Diagonal
Diagonal
3
5
3
5
Double Top
Double Top
Double Bottom
Double Bottom
Head-and-Shoulder H
S S
Head-and-Shoulder H
S S
Head-and-Shoulder
S S
H
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Elliott Wave Mastery
Head-and-Shoulder
S S
H
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sell any part of this document unless you have written permission.
Elliott Wave Mastery
Lesson Objectives
PATTERN 1. Flag / Flat
RECOGNITION
BIAS L
2. Channel
CONFI
TIONA
FRACT ON
RMATI
2
3. Wave Expectation of Flag & Flat
DIREC
AL
4. Diagonal
Lesson Objectives
FRACTAL 1. Price Pattern Fractal Nature
CONFIRMATION
2. Larger Timeframe Provides More
TERM TS
Reliable Patterns
NITION
RECOG RN
POIN
PATTE
INATI
3
3. Lower Timeframe Provides
ON
Confirmation
▸ To build a house, we want to know how does the final design look like
▸ During construction, we want to make sure the bricks are placed properly
too
▸ If the bricks are not placed properly, the final design will not be ready
▸ Larger timeframe like Daily and Weekly provides more reliable patterns and
directional bias
▸ Lower timeframe like H4, H1, M15 provides confirmation that the price may
be ready to move
Daily Timeframe
Daily Timeframe
Daily Timeframe
▸ Zoom in to H4 timeframe
H4 Timeframe
H4 Timeframe
▸ Double Top, Channel
H4 Timeframe
▸ Zoom in to H1 timeframe
H1 Timeframe
H1 Timeframe
H1 Timeframe
▸ When the Daily, H4 and H1 all suggesting downside bias, the odds and
probability stack up to our favor
▸ Taking a short trade from here not only provide us with an alignment with
the larger direction from daily, but also indicating that the timing is ready
from the lower timeframes
Sell Here
Sell Here
Sell Here
Sell Here
▸ Often trader cut themselves short by taking profits too early, especially if we
are trading based on just one timeframe
▸ Some traders also cut themselves short based on the concept of support
and resistance, taking profits at the previous highs or lows
▸ With fractal confirmation and Elliott Wave, we want to ride the move as
much as we can
Sell Here
Sell Here
Sell Here
0.5 67%
1 50%
1.5 40%
2 33%
2.5 29%
3 25%
Stop Loss
Sell Here
▸ Can you still take a trade that is against the higher timeframe?
▸ And more importantly, now you have clarity when taking this trade
▸ For me, I do not take trades that are less than reward ratio of 3
Lesson Objectives
FRACTAL 1. Price Pattern Fractal Nature
CONFIRMATION
2. Larger Timeframe Provides More
TERM TS
Reliable Patterns
NITION
RECOG RN
POIN
PATTE
INATI
3
3. Lower Timeframe Provides
ON
Confirmation
Lesson Objectives
TERMINATION 1. Why this is important
POINTS
2. Price Tends to Break High & Low
TION
CONF TAL
FOREC
MARK ST
IRMA
FRAC
IT I O
4
N
DIR BIA
ET
A
4. Be Patient for Correction to Confirm
Termination Points
3 Touches
▸ The 3rd touch of a pattern (often the diagonal) is where the correction is
likely completed
3 Touches
3 Touches
3 Touches
3 Touches
3 Touches
3 Touches
3 Touches
3 Touches
▸ End of impulse
▸ End of impulse
▸ Start of correction
▸ Start of correction
▸ Start of correction
▸ Start of correction
▸ Start of correction
▸ Start of correction
Putting it Together
Putting it Together
Putting it Together
Putting it Together
Putting it Together
‣ Price broke the low and impulse up
Putting it Together
‣ Correction forming
Putting it Together
‣ Flat forming
Buy Here
Stop Loss
Putting it Together
Buy Here
Stop Loss
Putting it Together
Buy Here
Stop Loss
Putting it Together
TP
Buy Here
Stop Loss
Lesson Objectives
TERMINATION 1. Why this is important
POINTS
2. Price Tends to Break High & Low
TION
CONF TAL
FOREC
MARK ST
IRMA
FRAC
IT I O
4
N
DIR BIA
ET
A
4. Be Patient for Correction to Confirm
Lesson Objectives
MARKET 1. Why We Forecast
FORECAST
DIREC
POINT N
BIAS
TIONA
3. Your Go-to-Setups
5
TERMI
L
4. Trade Management
N REC
ATI O OG 5. Risk Management
I R M AL PAT NIT
N F CT TER ION
CO FRA N 6. How to Scale In
▸ Just like running a business, we want to plan out the various scenarios,
budgeting, targets, milestones, etc.
▸ This process not only help us in the mental state, but also in the execution
state
▸ Reviewing ▸ Tracking
▸ Focus on the near term opportunities, with long term profit targets
▸ Lookout for instruments that are near (1) high or low, and (2) 3rd touch on
higher timeframe
▸ AUDUSD
▸ EURUSD
▸ USDJPY
▸ Microsoft
Your Go-To-Setup
▸ It’s important to know what you are looking for to give you the reason to pull
the trigger
Flag Framework
Flag Framework
1
3
Be patient with
correction
Flag Framework
Entry
1 Stop Loss
3
Flag Framework
Entry
1 Stop Loss
3
Flag Framework
2
Stop Loss
Entry
1
3
Flag Framework
2
Stop Loss
Entry
1
3
Flag Framework
2 Stop Loss
Entry
1
3
Diagonal Framework
Diagonal Framework
5
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sell any part of this document unless you have written permission.
Elliott Wave Mastery
Diagonal Framework
Entry
1
3
Stop Loss
5
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sell any part of this document unless you have written permission.
Elliott Wave Mastery
Diagonal Framework
Entry
1
3
Stop Loss
5
© eSmart Technologies Sdn Bhd. Do not share, copy, reproduce or
sell any part of this document unless you have written permission.
Elliott Wave Mastery
Diagonal Framework
4
Stop Loss
1 Entry
3
5
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sell any part of this document unless you have written permission.
Elliott Wave Mastery
Diagonal Framework
4
Stop Loss
1 Entry
3
5
© eSmart Technologies Sdn Bhd. Do not share, copy, reproduce or
sell any part of this document unless you have written permission.
Elliott Wave Mastery
Diagonal Framework
4
Stop Loss
1 Entry
3
5
© eSmart Technologies Sdn Bhd. Do not share, copy, reproduce or
sell any part of this document unless you have written permission.
Elliott Wave Mastery
▸ Higher timeframe
▸ Higher timeframe
▸ Downside bias
▸ Lower timeframe
impulse move down
▸ Lower timeframe
impulse move down
Stop Loss
Entry
Stop Loss
Entry
Entry
Stop Loss
Entry
Stop Loss
Entry
Stop Loss
Stop Loss
Entry
Target
Risk Management
▸ “It’s not whether you’re right or wrong, but how much money you make
when you’re right and how much you lose when you’re wrong.”
https://youtu.be/
zyErqQ3yhzg
▸ First you need to know your risk tolerance, your risk profile
▸ For example, if you lost a total of $2,000 from a $10,000 account, that’s
a 20% drawdown
▸ How many of you know what’s the worst case scenario for trading /
investing?
▸ For example
Scaling In
▸ The idea is to maximize our profit in a single trade idea, while maintaining or
reducing our risk
1st Entry
1st Entry
2nd Entry
1st Entry
Trading Psychology
▸ How are you feeling / reacting / responding to positive and negative events?
Visualize this
▸ You just won a trade
▸ Which of these are you in? How can you neutralize it?
Visualize this
Visualize this
Visualize this
References
▸ Brett Steenbarger
▸ Trader Psychology: Every Elite Trader Has These Six Qualities With Dr.
Brett Steenbarger - https://youtu.be/lsmnlIoH5qA
Lesson Objectives
MARKET 1. Why We Forecast
FORECAST
DIREC
POINT N
BIAS
TIONA
3. Your Go-to-Setups
5
TERMI
L
4. Trade Management
N REC
ATI O OG 5. Risk Management
I R M AL PAT NIT
N F CT TER ION
CO FRA N 6. How to Scale In
▸ This process is important to help you firm up what you have just learned
▸ Write down 3 biggest takeaways you got from this session, and share your
them in the Mastermind Group
▸ Be specific in how you are going to apply these 3 takeaways and how they
benefited you
▸ So that you can also pick up on the lessons that you might have missed