Lesson in Elliott Waves: How to Identify Price Targets For Waves 2 And 4

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Lesson in Elliott Waves: How to Identify Price Targets For Waves 2 And 4
Elliott Wave Junctures newest video lesson gives you the ultimate advantage for anticipating major turns in financial markets

By Nico Isaac
Thu, 18 Oct 2012 15:00:00 ET

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Right now I’m reading a biography of the famous Wall Street trader Martin “Buzzy” Schwartz. In it, he describes his first days on the hectic, high-paced floor of the American Stock Exchange where one detail instantly stood out: The traders who went into the pit without a clear and defined discipline had the biggest sweat stains on their “members only” blue smocks at the end of the day.

Without discipline, trading in financial markets is like skydiving without a working parachute. Having one has always been the number one rule of every market success story, including EWI Senior Analyst Jeffrey Kennedy.

For over 20 years, Jeffrey’s primary discipline has been Elliott wave analysis, combined with traditional technical methods. By now, Jeffrey knows the specific rules and guidelines of the Wave Principle like the back of his hand, all the while bringing his own, original trading lessons and indicators into being.

It is with this stout arsenal that Jeffrey continues to navigate the volatile maze of dozens of markets, dodging popular decoys and overcoming hurdles to reach the ultimate goal: Identifying high-confidence trade set-ups.

In EWI’s brand-new educational service, Elliott Wave Junctures, Jeffrey picks one of these invaluable lessons off the shelf and, 3-5 times per week, creates for subscribers a short, simple instruction video on real-life Elliott wave application.

Right out of the gates was the April 23 Elliott Wave Junctures video episode, titled “Fibonacci Retracements within Impulse Waves.” Here’s a sneak preview of what happens after subscribers press PLAY:

Jeffrey shows you the most common Fibonacci relationships for waves 2 and 4 within a basic 5-wave impulsive Elliott wave pattern. They are:

The most common Fibonacci retracement of wave 2 is a .618 or .786 multiple of wave 1. A large 2nd wave retracement makes for a strong and solid base for a sizable 3rd wave, the “meat” of most price trends

And, the most common Fibonacci retracement of wave 4 is a .382 multiple of wave 3.

Next, Jeffrey illustrates how these common Fibonacci relationships for waves 2 and 4 play out in real time via these two charts: The first one is a chart of a major commodity market, and the second of Johnson & Johnson stock (NYSE:JNJ; time undisclosed):

In this 5-minute video Jeffrey drives home a life-changing message: Prices of financial markets follow a clear, mathematical formula. Knowing where and when certain waves may end means knowing when major trend changes will begin.

Don’t wait another minute. Enlist in Jeffrey Kennedy’s exclusive Elliott Wave Junctures “school of trading” and perfect your discipline. AND -- for a limited time only, EWJ subscribers have access to the complete EWJ video library. Simply pull down the April 2012 tab and click on the Apr. 23 selction to view the complete episode.

EWI's NEW Service Teaches You Real-World Trading Lessons in Real-Life Market Junctures; Edited by Renowned Trading Instructor Jeffrey Kennedy

Elliott Wave Junctures offers you practical, real-world trading lessons delivered in a powerful video format.

3-5 times per week, veteran Elliott wave analyst Jeffrey Kennedy walks you through REAL market junctures with one overarching goal: to help you master the critical aspects of spotting and acting on high-probability trading opportunities in the markets you follow.

Tags: Elliott wave, Elliott Wave trading, Jeffrey Kennedy, stock indexes, technical indicators, Wall Street

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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.