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A 4-Part Quiz to Help YOU Increase Confidence in Your Wave Count - Day 4
Learn how Senior Analyst Jeffrey Kennedy uses an ancient Japanese method to support his Wave analysis from August 1st.
By Jill Noble
Fri, 31 Aug 2012 16:45:00 ET
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This week we've shown you excerpts from Jeffrey Kennedy's Elliott Wave Junctures service to show how you can use supporting indicators to gain confidence to your wave count.

Let's look at one more technical tool to increase confidence in our wave count: Candlestick charts.
 
It's been a very long time since Homma, a Japanese futures trader, wrote about market psychology in the rice markets of the Meiji era. Yet, his method of observing Yin and Yang (or, negative/bearish vs. positive/bullish) market movement still provides excellent insight to support modern-day Wave analysis.
 
Quiz Question 4: What Candlestick pattern can you see at wave 5 of (C)?

Answer: "The last two trading days of wave 5 of (C) formed a bearish engulfing pattern.

"If we look at the extreme of wave (C), you can see waves 3, 4 and 5 of (C) -- and even within wave 5 you can see five structures: waves 1, 2, 3, 4 and as wave 5 was coming to the culmination, we form a bearish Engulfing Pattern."

At the extremes of these completed wave patterns, the accompanying technical evidence allowed the analyst and trader alike to build confidence in their respective decisions.

If you've learned from this week's lessons (don't miss days 1, 2 or 3), now is the perfect time to try out Jeffrey's educational video service, Elliott Wave Junctures.
 

      Elliott Wave Junctures
 
Elliott Wave Junctures (EWJ) gives you 3 to 5 video-based trading lessons each week that help you master the many critical aspects of spotting -- and acting on  -- high-confidence trading opportunities for yourself. Now you can try EWJ risk-free for 30 days. Learn more >>

 

 

Tags: Elliott Wave Education, Elliott Wave trading, Jeffrey Kennedy, technical analysis, technical indicators, Traders, trading lessons
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