Trading Implications

By: Dr. John Trapp | Fri, Apr 16, 2010
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Let's look at some trading implications of the first lesson on some of the basics of EW. These first two EW lessons are not meant to be exhaustive. My intent is to give those who are new to EW a taste of the practical side of this method of analysis. More lessons are to come, and this will be the general format. It will be didactic followed by practical applications to trading. Be patient. As you grasp the basics, the rest will come easy.

We will look at the rules first.

Elliott Wave 1

Elliott Wave 5 Ending Diagonal

Elliott Wave 5 Failure

I didn't have to look far to find at least a truncated W5 in recent ES history. This example is very instructional. Look at the correction from the weak W5!

ES 60-Minute

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I hope that my new subscribers who are also new to Elliott Wave Analysis are seeing the power of EW. I don't know how I could trade without it.

Thanks and have a great weekend!



Dr. John Trapp

Author: Dr. John Trapp

Dr. John Trapp a.k.a Mortie

Dr. John Trapp a.k.a. Mortie

Dr. John Trapp a.k.a. Mortie for Value of Perfect Information who offer stock market commentary, fundamental & technical analyses on the financial markets. Try MortiES' 30 day free trial. Visit:

A little about myself. My name is John Trapp and I write for the "Value of Perfect Information" exclusively. Trading didn't look too difficult to me 22 years ago, so I began trading October 1987. After that experience and a break from trading, I tried again. This time I was going to be a Bear. Perfect for the 90's. So I didn't have a great start as a trader. I paid a lot for my trading education. I was thrilled when I could finally break even on a regular basis. Trading is an avocation for me - one that I take seriously, and one that I consider the most difficult endeavor I have ever undertaken. I have a lot going against me as a trader. I was a Marine officer in Vietnam and fought in the Ashau with a Battalion called "The Walking Dead" ~ and so, like most combat Marines, I'm too aggressive. I'm a Doctor (one of the Dental specialties) ~ and everyone knows they are the worse investors/businessmen. I am a perfectionist and hate to be wrong ~ so I have a tendency to want to fight the market. Overcoming these liabilities makes the prize more rewarding. I'm still a work in progress, but am making headway. I think I have a lot of good advice for new traders. If I would follow my own advice more consistently, I would be a far better trader also. This is the article and charts my premium subscribers received this weekend.

Value of Perfect Information: Combined, the authors are providing you the investor with various and differing stock market commentary, fundamental and technical analyses on the financial markets that you can utilize to get as close to the "Value of Perfect Information" as if you had tomorrow's financial paper in front of you today. Perfect information would practically mean that all investors know all things, about all stocks, at all times, and therefore always make the best decision regarding investments; in a small way, the authors are attempting to provide you with this "Value of Perfect Information". Enjoy!

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