Appendix A: Introduction to the Wave Principle

• Intro
• The Basic Pattern
• Motive Waves
  • Impulse
    • 3 Rules
      • Wave 2 never moves beyond the start of wave 1 (2 retraces less than 100% of 1).
      • Wave 3 is never the shortest motive subwave, but it does not have to be the longest.
      • Wave 4 never enters the price territory of wave 1
    • See Picture of correct and incorrect counting based on these rules
  • Extension
  • Truncation
  • Diagonal
• Corrective Waves
  • Zigzag
  • Flat
    • Regular Flat
    • Expanded Flat
    • Running Flat
  • Triangle
    • Contracting (upper line declining, lower line rising)
    • Barrier (outer line flat, inner line sloping with larger trend)
    • Expanding (upper line rising, lower line declining)
    • Running Triangle
    • Post-Triangle Thrust Measurement
  • Combination
• Fibonacci Relationships
  • Intro
    • Double Three Combination
  • Retracements
  • Multiples
  • Dividers
  • Clusters
• For More Information
  • www.elliottwave.com/wave/ReaderResources

Chapter 1: The Anatomy of Elliott Wave Trading

• Intro
• How the Wave Principle Improves Trading
  • How the Wave Principle Improves Upon Traditional Technical Studies
  • Five Ways the Wave Principle Improves Trading
    • Identifying the Trend
    • Identifying the Countertrend
    • Determining the Maturity of a Trend
    • Providing Price Targets
    • Providing Specific Points of Invalidation
• The Four Best Waves to Trade
  • 3, 5, A, and C are the most advantageous to trade
    • because they are oriented in the direction of the one larger trend.
  • Five-waves moves determine the direction of the larger trend
  • Three-wave moves offer traders an opportunity to join the trend.
• Elliot Wave Trade Setups
• When to Trade Corrections
• Guidelines for Trading Specific Elliott Wave Patterns
  • Impulse Waves
  • Ending Diagonal
  • Zigzag
  • Flat
  • Triangle
• The Neglected Essentials– Risk Management and the Psychology of Trading
  • Intro
  • Risk-Reward Ratio
  • Trade Size
• The Psychology of Trading
  • Intro
  • Lack of Methodology
  • Lack of Discipline
  • Unrealistic Expectations
  • Lack of Patience
    • [Video on the Importance of Patience] www. wiley.com/go/elliottwavevg
  • For more information
    • www. elliottwave.com/wave/ReaderResources

Gorman, Wayne and Kennedy, Jeffrey: Visual Guide to Elliot Wave Trading, John Wiley & Sons, Inc., c. 2013, ISBN: 978-1-118-44560-0
Chapters: 1, Appendix A

Click chapter titles to see details.

PART 1: Trade Setups
Chapter 1: The Anatomy of Elliott Wave Trading
Appendix A: Introduction to the Wave Principle, by Wayne Gorman

Part 5: Volume and Time
Chapter 31: Open Interest

Part 5: Volume and Time
Chapter 30: Force Index

Part 5: Volume and Time
Chapter 29: Volume-Based Indicators

Part 5: Volume and Time
Chapter 28: Volume

Part 4: Computerized Technical Analysis

Chapter 27: Relative Strength Index

Part 4: Computerized Technical Analysis

Chapter 26: Stochastic