Stock Market 64 to 67 Week Square Wave

Document Sample
Stock Market 64 to 67 Week Square Wave Powered By Docstoc
					P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010      18:46      Printer: Yet to come




                                                     Index




                                                                             AL
           AB = CD, 32, 33, 53, 74, 171                         for the week of March 9, 2009, 127–133




                                                                         RI
           ABC Elliott wave correction, 117, 123                for the week of October 19, 2009,
           ABC Zigzag, 27, 31–32, 52, 171                            109–117




                                                                    TE
           A-B leg, 46, 53                                    CFTC. See Commodity Futures Trading
           A-D move, 151                                             Commission (CFTC)
           Advantage Gambling, 6, 40, 171                     Charts:
           Alchemy, 7, 171
           Alternative Elliott wave count, 171
                                                            MA  calendar day, 171
                                                                setting up, 17–19
           Arithmetic scaling, 19, 20, 171                      swing, 20–21
           Astro Cycles: A Traders Perspective                Cluster, 171
                  (Pesavento), 47                             Collins, Charles, 47
                                                      ED

           Atlas Shrugged (Rand), 5                           Commodity Futures Trading Commission
                                                                     (CFTC), 9
           Baby, in Harami pattern, 86                        Commodity Trading Advisor (CTA), 6,
                                             HT


           Basics of My Forecasting Method, The                      172
                  (Gann), 150                                 Computers, trading and, 12–14
           B-C leg/move, 46, 53                               Continuous Chart, 171
                                        IG




           Bearish, 24, 27, 29, 63, 171                       Contract, 171
           Beck, Ross, 74–75                                  Contracting Geometric Series, 171
                                  R




           Beck’s emblem, 154–156                             Corrective phase, 27, 28, 30–32, 33, 171
             defined, 171                                      Counter-trends, 30–31, 172. See also
                               PY




             Gann emblem offset, 155                                 Corrective phase
             offset emblem with two triangles, 155            CTA. See Commodity Trading Advisor
             TCG example with, 156–164                               (CTA)
                        CO




           Beck Tool Group, 92
           Black Box, 171                                     Data sources, 24–25
           Broadening reversal, 65                            Day trader:
           Bullish, 27, 171                                     benefits and downside of, 96
                                                                defined, 172
           Calendar day charts, 171                           Decline:
           Candlestick entry method, 86–87, 171                 intermediate, 66
           Carney, Scott:                                       minor, 46, 67–68
             harmonic trading and, 51–52                      Derivatives, 172
             vs. modern methods, 74–75                        Divination, 17, 172
           Case studies:                                      DJI (Dow Jones Industrials) index, 19–20
             for the week of December 7, 2009,                Double reversal, 65
                  117–123                                     Double Top/Double Bottom, 172
             for the week of June 22, 2009, 123–126           Doubling-down concept, 104



                                                                                                         185
P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010      18:46       Printer: Yet to come




          186                                                                                           INDEX




          Drawdown, 8, 45, 105, 139, 172                      G222, 173
          Dynamic, 172                                        Gambling:
          Dynamic Trader software, 46                           defined, 6, 173
          Dynamic Trading (Miner), 135                          trading vs., 5–7
                                                              Gann, W. D., 4, 13, 46, 150, 173
          eBay, 92                                            Gann Angles, 152
          ED. See Entry dysfunction (ED)                      Gann Box, 73, 173
          Ego, 5, 172                                         Gann Fan, 152–153, 173
          Elliott, R.N., 143, 172                             Gann’s emblem:
          Elliott labels, 70, 71                                Beck’s emblem, 154–155
          Elliott wave. See Gartley and Elliott wave            circle, square, and triangle, 150–151
                  relationship                                  defined, 173
          Elliott wave obsessive compulsive disorder            offset angles, 152–154
                  (EWOCD), 30, 143, 172                         TCG example with Beck’s emblem,
          Elliott wave rules, 28                                     156–164
          Elliott wave theory, 27, 40, 52, 143–144.             timing element of trades, 151–152
                  See also Wave Principle, The                Garrett, William C., 30
                  (Elliott)                                   Gartley, H. M., 3, 5, 6, 7, 13, 173
            defined, 172                                       Gartley, Harold, 43
            trade wave 1, 3, or 5, 144–145                    Gartley 222, Pesavento and, 46–50
            wave 3 or C, 146–147                              Gartley and Elliott wave relationship:
          End of day. See EOD (End of day) data                 AB = CD, 32
          Entry, 172                                            all-important corrective phase, 31–32
          Entry dysfunction (ED), 145, 172                      the bottom line, 39–40
          Entry strategies                                      Elliott wave, 67
            candlestick entry method, 86–87                     Elliott wave theory, 27–30
            Fibonacci entry method, 83–84                       Fibonacci ratio, 32–34
            1-bar reversal entry method, 84–86                  price extensions, 36–39
            technical indicator entry method,                   price retracements, 34–36
                  87–89                                         trends and counter trends, 30–31
          EOD (End of day) data, 24                           Gartley Pattern, 10, 15, 16, 23, 24, 41, 45.
          EWOCD. See Elliott wave obsessive                          See also Elliott wave theory; Gartley
                  compulsive disorder (EWOCD)                        Pattern vs. classical technical patterns;
          Exit, 172                                                  Scott’s Gartley Pattern
          Exit strategies:                                      Carney and harmonic trading, 51–52
            entry strategies vs., 89–90                         defined, 173
            3-bar trailing stop, 90–95                          Gilmore and geometry of the markets,
          Extension clusters, 54–59                                  51
                                                                historical summary, 52–53
          Fib abbreviation of Fibonacci., 172                   objective pattern criteria, 53–54
          Fibonacci, 172                                        Pesavento and Gartley 222, 46–50
          Fibonacci entry method, 83–84, 99, 172                retracement and extension clusters,
          Fibonacci ratios, 32–34, 73–74                             54–59
          Fibonacci Ratios with Pattern Recognition             vs. modern methods, 74–75
                (Pesavento), 48– 50, 151                      Gartley Pattern vs. classical technical
          Fibonacci retracement, 22, 34–36                           patterns:
          Financial pornography, 39, 172                        basics of Gartley Pattern, 64–66
          Five-wave trend, 31                                   bearish pattern, 63
          Fundamental analysis, 172                             best trading opportunities revisited,
          Futures, 172                                               66–69
P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010       18:46   Printer: Yet to come




           Index                                                                                      187



             double bottom on the 60-minute NZD/USD         Intraday trading, 11
                  chart, 62                                 Investing for Profit with Torque Analysis of
             Fibonacci ratios, 73–74                               Stock Market Cycle (Garrett), 30
             Gartley and the double bottom, 62
             Gartley methods compared, 74, 75               Japanese candlesticks, 17, 173
             head-and-shoulder pattern in the AUD/USD,      Jenkins, Michael S., 152
                  63                                        Jones, Billy, 43
             new labeling conventions, 69–73
             trend continuation, 75–76                      Labeling:
             trend reversals, 76–79                           defined, 174
           Gartley’s labels, 66, 70                           new conventions, 69–73
           Gartley’s Stock Market Data - A                  Labels:
                  Comprehensive Tabulation of Stock           Elliott, 71
                  Market Data Digested for the Use of         Gartley, 70
                  Stock Market Students (Newsletter), 43      Gartley 222, 48
           Gartley Trader Forex Report, 109, 123, 124,        Pesavento, 70, 71
                  125                                         XABCD, 49
           Gartley Trader Futures Report:                   Lagging indicators, 22, 174
             for the week of December 7, 2009, 117–123      Late bears, selling from, 46
             for the week of June 22, 2009, 123–126         Leading indicator, 174
             for the week of March 9, 2009, 127–133         Leeson, Nick, 5
             for the week of October 19, 2009, 119–117      Liber Abacci (Fibonacci), 34
           Gartley Trading Method, 30, 138, 139, 143        Limit, 174
           Gates, Bill, 7                                   Lindsay, Charles, 48
           Gecko, Gordon, 4                                 Liquidate, 174
           Geometry of the Markets (Gilmore), 51            Livermore, Jesse, 10
           Geometry of the Markets II (Gilmore), 34, 51,    Logarithmic scaling, 19, 174
                  74                                        Long, 174
           Getty, J. P., 4                                  Loser, 174
           Gilmore, Bryce, 34, 51, 74                       Lot, 174
           Gray, Albert, 89                                 Lottery ticket contract, 174

           Harami pattern, 86, 173                          Mandorla (Almond), 160, 174
           HarmonicTiming.com, 47                           Market Analyst, 174
           Harmonic trading, Carney and, 51–55              Market Wizards (Schwager), 4
           Harmonic Trading (Carney), 51                    Martingale-style money management system,
           Harmonictrader.com, 51                                  104, 174
           Head-and-shoulder reversal, 65                   Mechanical style, 174
           Head and shoulders, 61, 63, 78, 173              Miner, Robert, 46, 54, 135
           Hobby, 173                                       Minor decline, 46, 67–68
           Holy Bible, The, 4                               Minor rally, 67
           Holy Grail, 173                                  Mirage, 10, 174
           Hopium, 89, 173                                  Mother candlestick, 86
           Humility, traders and, 4
                                                            National Futures Association. See NFA
           Impulsive phase, 27, 28, 30–31, 173                    (National Futures Association)
           Indicators, 22, 33, 173                          Nature’s Law-The Secret of the Universe
           Inside bar, 86                                         (Elliott), 27, 30
             defined, 173                                    Nausea, 174
             3-bar trailing stop with, 91                   Network (Movie), 36
P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010         18:46      Printer: Yet to come




          188                                                                                             INDEX




          New York Society of Security Analysts, 43               defined, 175
          NFA (National Futures Association), 9                   drawing the, 162
                                                                  price extension, 111
          Objective, 174                                          use of price-extension tool for, 76
          Offset angles, 152–154, 174                           Quigley, Ernie, 47
          OHLC (open, high, low, close), 17, 175
          1-bar reversal entry method, 84–86, 174               R. N. Elliotts Masterworks (Elliott), 27
          “One of the Best Trading Opportunities”,              Rally, minor, 67
                 44                                             Rand, Ayn, 5
          1X1 angle, 152                                        Rate of return, trading and, 8
          Open, high, low, close. See OHLC (open, high,         Ratios, Fibonacci’s, 32–34, 73–74
                 low, close)                                    Real body, 86
          Ordo ab Chao, 175                                     Real-time data, 24
          Oscillator, 22, 23                                    Reminiscences of a Stock Operator
            defined, 174                                                (Livermore), 10
            stochastic, 22, 176                                 Retracement(s):
          Overbalance, 175                                        clusters, 54–59
                                                                  Gartley’s Pattern vs. modern methods, 74
          Pesavento, Larry, 53                                    one-third and one-half, 69
            Gartley 222 and, 46–50                              Risk management, 175
            Gartley Pattern vs., 74                             Rogue Trader (Movie), 5
            labels, 70, 71                                      Rounders (Movie), 6
            meeting with Gilmore, 51, 175                       Rounding reversal, 65
          Philosophers’ stone, 7, 175
          Planetary Harmonics of Speculative Markets            Sacred Geometry, 175
                 (Pesavento), 48, 50                            Scale, 175
          Position trader:                                      Scale In/single out strategy, 95, 104–107, 175
            benefits and downside of, 96–97                      Schwager, Jack, 4
            defined, 175                                         Scott’s Gartley Pattern, 52
          Prechter, Robert, 143                                 Second target hit, 98, 99, 101, 103, 115, 121,
          Price behavior chart, 66                                      132
          Price extensions:                                     Secret of the Universe, The (Elliott), 143
            calculating with quadrilaterals, 39                 SEC Securities and Exchange Commission,
            calculating with trendlines, 37–39                          175
            defined, 175                                         Setup, 175
            plotting, 36–37                                     Short, 176
          Price retracements, 34–36, 110, 118, 123,             Simple ABC zigzag correction, 31
                 175                                            Single In/scale out strategy, 95, 96–104, 106,
          Professional, 175                                             118–119, 176
          Profits:                                               Software:
            stop levels and, 130                                  defined, 176
            time frame and, 11                                    Dynamic Trader, 46
          Profits in the Stock Market (Gartley), 3, 5, 6, 7,       setting up charts, 17–19
                 15, 23, 30, 43, 44, 45, 46, 47, 69, 75, 99,    Spot, 176
                 144                                            Square-Root Scaling, 176
          Pulling the Trigger, 4–5, 175                         Static, 176
                                                                Stochastic oscillator, 22, 176
          Quadrilateral, 110, 123, 124, 129                     Stop order, 176
           to calculate end of wave C, 39, 161                  Subjective, 176
           clustering with 78.6 percent, 111                    Success, trading and, 7–8, 40
P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010       18:46     Printer: Yet to come




           Index                                                                                          189



           Swing chart overlay, 176                             computers and, 12–14
           Swing charts, 20–21                                  debunking unrealistic expectations,
           Swing trader, 96                                           8–9
             defined, 176                                        probabilities and, 17
             moderate, 97                                       relationship between profits and time
                                                                      frame, 11
           TCG. See Trend-continuation Gartley (TCG)            setting realistic expectations and,
           Technical analysis, 176                                    7–8
           Technical analysis 101:                              success, goals of, 7
             data sources, 24–25                                vs. gambling, 5–7
             fundamentals vs. technicals, 15–16                 in the white space, 22
             oscillators and indicators, 22                   “Trading edge”, 10
             predicting the future, 16–17                     Trading Journal:
             setting up charts, 17–19                           defined, 176
             swing charts, 20–21                                keeping, 140
             trading in the white space, 22                   Trading multiple contracts, 95
             volume, 23–24                                    Trading plan:
           Technical Analysis of Stocks and                     defined, 176
                  Commodities, 9                                developing, 136–138
           Technical approach, defined, 15                       sample of, 138–139
           Technical indicator or entry method, 87–89,        Trailing stop, 176
                  176                                         Transactions:
           3-bar trailing stop, 102, 120                        prices and, 23
             above entry price, 103                             profits and, 11
             calculation of, 90–95                            Trend-continuation Gartley (TCG)
             on a daily chart, 95                               defined, 176
             daily chart with, 116                              explanation of, 75–76, 77, 78
             defined, 176                                        modern, 64, 65, 69
             indicator, 93                                      vs. trend reversal Gartley, 74–75
             with inside bar, 91                              Trendlines, 151
             long, 93                                           for calculating price extensions,
             1-bar reversal entry method and, 85                      37–38
             stopped out, 94, 117, 122                          defined, 177
             on weekly chart, 96, 133                         Trend-reversal Gartley (TRG):
           Three-wave correction, 31                            defined, 177
           Time analysis, 151–152                               explanation of, 76–79
           Time frame, profits and, 11                           trend-continuation Gartley Pattern vs.,
           Trader(s), see also Position trader. See also              74–75
                  Trading                                     Trends, 30–31, 176
             character traits of, 3–4                         TRG. See Trend-reversal Gartley (TRG)
             day, 96                                          Trident: A Trading Strategy (Lindsay),
             defined, 3                                                48
             of derivatives, 10                               Twentyman, Jim, 47
             moderate swing, 97                               21 (Movie), 6
             “pulling the trigger”, 4–5
             swing, 96                                        Vesica Pisces, 177
             top, returns of, 8                               Volume, 23–24, 74, 177
           Trade wave 1, 3, or 5, 144–145
           Trading. See also Trader(s)                        Wall Street (Movie), 4
             Carney and harmonic, 51–52                       Wave 3 or C, 146–147
P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010        18:46    Printer: Yet to come




          190                                                                                   INDEX




          Wave Principle, The (Elliott), 27, 30, 31          X-A leg, 53, 110, 117, 123, 127,
          Weekend Trading, 19, 177                                  151
          White space:                                       X Axis, 19, 177
           defined, 177
           trading in, 22
                                                             Y Axis, 19, 177
          Wolfe, Bill, 165
          Wolfe wave, 165–169, 177
          W-X leg/move, 46, 74, 127, 177                     Zigzag Indicator, 20, 21, 177
P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010   18:46   Printer: Yet to come
P1: OTA/XYZ    P2: ABC
ind    JWBT334-Beck    August 6, 2010   18:46   Printer: Yet to come

				
DOCUMENT INFO
Description: Stock Market 64 to 67 Week Square Wave document sample