Learn How to Trade in Forex Like a Pro

7/27/2019 Learn How to Trade in Forex Like a Pro

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SEMINAR

By

Asia Fx Traders

ike A Pro with Elliot Wave

Trade Inearn HowL Forex

L

Malaysia orexTraining CentreF


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Asia Fx Traders Risk Disclosure

Trading in the off exchange retail foreign currency market (FOREX) have large potential rewards,but also large potential risk. You must be aware of the risks and be willing to accept them in orderto invest in the futures and options markets. Dont trade with money you cant afford to lose. Thisletter is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is beingmade that any account will or is likely to achieve profits or losses similar to those discussed onthis letter. The past performance of any trading system or methodology is not necessarily

indicative of future results.

Trading in the off exchange retail foreign currency market (FOREX) is a challenging andpotentially profitable opportunity for educated and experienced investors. However, beforedeciding to participate in the Forex market, you should carefully consider your investmentobjectives, level of experience and risk appetite. Most importantly, do not invest money youcannot afford to lose.There is considerable exposure to risk in any foreign exchange transaction.Any transaction involving currencies involves risks including, but not limited to, the potential forchanging political and/or economic conditions that may substantially affect the price or liquidity of

a currency.More over, the leveraged nature of FX trading means that any market movement willhave an equally proportional effect on your deposited funds. This may work against you as wellas for you. The possibility exists that you could sustain a total loss of initial margin funds and berequired to deposit additional funds to maintain your position. If you fail to meet any margin callwithin the time prescribed, your position will be liquidated and you will be responsible for anyresulting losses. Investors may lower their exposure to risk by employing risk-reducing strategiessuch as stop-loss or limit orders.

But in addition that, you may not imply or infer that stop-loss eliminate or manage risk.

Risk with News Trading :- As with all major economic releases there could be significant pricevolatility with this announcement. Currency spreads will typically widen just before the releaseand will remain wide for a few minutes after. If the announcement is a shock to the consensusestimate, the price of the currency pair could gap significantly. For example, the price on theEURUSD trading at 1.2820 - 1.2822 just before release could gap up 60 pips to 1.2880 - 1.2882,without any available prices available between the price of 1.2820 and 1.2882. A Buy Stopplaced before the announcement at 1.2830 would turn into a Market Order and would be filled atthe prevailing price 1.2882. The same would be true with a Sell Stop.Approximately four years

ago we saw a gap of approximately 200 pips on the GBPUSD on a Non-Farm Payrollannouncement. While this is an extreme example, this is what is possible with trading duringeconomic announcements. Basically, plan on the spreads widening and if you are trading with aBuy or a Sell Stop entry order, do not anticipate being filled at your entry price. You will be filled atthe prevailing market price after the release, and this market price could be significantly differentfrom your desired price of your entry order.


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No representation is being made that these products or services, and any associated advice ortraining, will guarantee profits, or not result in losses from trading. Neither the products, nor anytraining services held in conjunction therewith, including, without limitation, through onlineseminars, alert services, in conjunction with our advertising and promotional campaigns, duringour in-person seminars or otherwise, should be construed as providing a trade recommendationor the giving of investment advice. The purchase, sale or advice regarding a currency can only beperformed by a licensed Broker/Dealer. Neither Asia Fx Traders (operators of

http://asiafxtraders.com/), nor any of its affiliates, partners or associates involved in the in theproduction and maintenance of these products, services or this site, is a registered Broker/Dealeror Investment Advisor in any State or Federally-sanctioned jurisdiction. All purchasers of productsand services referenced at this site are encouraged to consult with a licensed representative oftheir choice regarding any particular trade or trading strategy.

Asia Fx Traders only provides a Forex Training in the Forex Trading. All Forex TechnicalAnalysis information on this website or during the Forex Trading Seminar is for educationalpurposes only and is not intended to provide financial advice. Any statements about profits or

income, expressed or implied, does not represent a guarantee. Your actual trading may result inlosses as no trading system is guaranteed. You accept full responsibilities for your actions, trades,profit or loss, and agree to hold Asia Fx Traders harmless in any and all ways.

Trading in the off exchange retail foreign currency market is one of the riskiest forms ofinvestment available in the financial markets and suitable for sophisticated individuals andinstitutions. The possibility exists that you could sustain a substantial loss of funds and thereforeyou should not invest money that you cannot afford to lose. Nothing in this presentation is arecommendation to buy or sell currencies and Asia Fx Traders is not liable for any loss or

damage, including without limitation, any loss of profit which may arise directly or indirectly fromthe use of Asia Fx Traders tools or reliance on such information.

All content copyright 2007 Asia Fx Traders. All rights reserved.

* Disclaimer -Asia FX Traders does not solicit or accept clients from the United States.


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CONTENTS

1. Knowing the basic of Elliott Waves and Principles

2. Trading with Ell iott Waves, Strategy and Target.

3. Trading System BujangSenang


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The Basics of the

Wave Principle

Presented by Elliot Wave MasterTrader


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1.00 Introduction Ralph Nelson Elliotts Discovery

2.00 Motive Waves3.00 Corrective Waves

4.00 Rules

5.00 Guidelines6.00 Wave Personalities

7.00 Fibonacci Relationships

The Basics of the Wave Principle

1.01


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Financial Market Behavior Characteristics

Emotional (Unconscious)

Subjective

Impulsive

Ignorance and Uncertainty

Herding

Values Cannot Revert To Anything

1.02


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The Wave Principle

Financial Markets are Patterned

1.03


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Ralph Nelson Elliott

(1871 1948)

Crowd behavior trends and reverses in recognizable patterns,that he called waves.

These structures link together to form larger versions of thesame patterns and how those, in turn, become the buildingblocks for patterns of the next larger size and so on.

In 1938, he coined this phenomenon The Wave Principle. Natures Law The Secret of the Universe

1.04


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1.05


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1.06


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1.07


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1.08


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1.09


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A More Realistic Wave Depiction

1.10


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1 2 3

4 5 6

1.11


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65 7

1.12


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Predict Market Direction

Identify turning Points

Provide Guidance for Entering and Exiting Positions

The Wave Principle

1.14


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MOTIVE WAVES


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MOTIVE WAVES

Key Characteristics

Five-wave structures, numbered 1-5

In the direction of the main trend of one larger degree Wave 2 cannot retrace more than 100% of wave 1

Wave 3 can never be the shortest and is often thelongest

2.01


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2.00


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MOTIVE WAVES

Five-Wave Structures

Impulse

1. Extensions

2. Truncations

Diagonal Triangles

2.02


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IMPULSE WAVES

Key Characteristics

Wave 4 never enters the price territory of wave 1. Actionary waves 1, 3 and 5 are motive waves. Wave 3 is always an impulse wave.

2.03


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2.04


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2.05


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2.06


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2.08


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EXTENSIONS

Key Characteristics

Elongated impulse wave Appears in either wave 1, 3 or 5

Often seen in wave 3 for the stock market Often seen in wave 5 in commodities

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2.10


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2.11


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2.12


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2.13


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2.14


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TRUNCATIONS

Key Characteristics

Wave 5 does not exceed the end of wave 3 Contains necessary five subwaves

Often occurs after a strong third wave

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2.16


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2.17


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2.18


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DIAGONAL TRIANGLES

Key Characteristics

Wave 4 almost always moves into the priceterritory of wave 1 Waves 1, 3 and 5 are composed of three

subwaves, not five

Found at termination points of larger pattern,indicating exhaustion of larger pattern

Normally has wedge shape within twoconverging lines

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Diagonal Triangles

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2.21


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2.23


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2.24


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2.25


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2.26


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SUMMARY

The Wave Principle = Graphic of Mass Psychology

Motive Waves = 5 Wave Structures, Main Trend of One Larger Degree

Types of Motive Waves = Impulse, Diagonal Triangle

Impulse:Waves 1, 3, 5 = 5 Impulse Subwaves

(Extensions, Truncations)

Wave 4 ! Price Territory of Wave 1

Diagonal Triangle: Waves 1, 3, 5 = 3 Subwaves

Wave 4 = Price Territory of Wave 1

Signal = Imminent Major Trend Reversal

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CORRECTIVE WAVES


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Characteristics of Corrective Waves

Zigzag

3.01


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3.00


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3.02


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Flat

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3.04


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Triangle

3.05


Horizontal Triangles


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g

3.06


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Running Triangles

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3.09


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3.11


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3.12



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3.13


Combination

Combination


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3.14

Combination


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3.15


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3.16


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3.17

Corrective Waves Summary


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Corrective Waves Summary

A B C D E Shape Position

Zigzag 5 3 5 Sharp Wave 2

Flat 3 3 5 Sideways Wave 4

Triangle 3 3 3 3 3 Sideways Wave 4

Combination X wave Sideways Wave 4

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Rules


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Rules

Of waves 1, 3 and 5, wave 3 can never be theshortest wave.

Wave 2 can never retrace more than 100% of

wave 1.

The end of wave 4 can never overlap theorthodox end of wave 1.

Strong Guideline

No portion of wave 4 can enter the price territoryof wave 1 or wave 2.

4.00

Rules


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Rules

4.01

Rules


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4.02

Rules


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This five-wave move

cannot be the start of

a new trend. It can bewave C of a

corrective pattern.

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Rules


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What might this be?

Significant Bottom

4.04

Rules


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What might this be?

4.05

Rules


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Wave 3 is never the shortest of

waves 1, 3 and 5. This could be

part of a wave 3 extension.

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Rules


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What might this be?

Significant Bottom

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Rules


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What might this be?

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Rules


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Wave 4 does not overlap the price territory

of wave 1. This could be the start of a 3rdwave extension or an A-B-C correction.

4.09

Guidelines


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Equality Alternation

Depth Channeling

Throw-Over Volume Post-Triangle Thrust

Measurement

5.00

Guidelines


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Wave Equality

Two of the motive waves in a five-wavesequence will tend toward equality in time andmagnitude.

This is generally true of the two non-extendedwaves.

For example, if wave 3 is extended then waves1 and 5 will tend toward equality.

5.01

Equality


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5.02

Equality


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5.03

Guidelines


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Alternation

Within Impulse Waves

If wave 2 is a sharp correction, expect wave 4to be a sideways correction, and vice versa. Sharp corrections never include a new price

extreme. Example: Zigzags

Sideways corrections usually include a newprice extreme. Examples: Flats, Triangles, and

Combinations Diagonal triangles do not display alternation in

subwaves 2 and 4.

5.04

Alternation within Impulse Waves


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5.05



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5.09

Guidelines


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Alternation

Within Corrective Waves

If a correction begins with a flat a-b-c structurefor wave A, then expect a zigzag a-b-c

structure for wave B, and vice versa.

If a large correction begins with a simple a-b-czigzag for wave A, wave B will stretch out into a

more complex a-b-c zigzag.

5.10

Guidelines


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Alternation within Corrective Waves

5.11

Guidelines


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Zigzag

5-3-5

5.15

Guidelines

Depth of Correcti e Wa es


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Depth of Corrective Waves

Corrections, especially when they are fourth

waves, tend to register their maximum

retracement within the span of travel of the

previous fourth wave of one lesser degree andmost commonly near its terminus.

5.16

Guidelines



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5.17



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5.18



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5.19

Guidelines

Channeling


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Channeling

A parallel trend channel typically marks the

upper and lower boundaries of impulse waves

and zigzag corrective waves.

5.20

Guidelines

Channeling in Impulse Waves


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5.21



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5.27

Guidelines

Channeling in Zigzags


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g g g

5.28

Channeling in Corrective Waves


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5.31

Guidelines

Throw-Over


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5.32

Throw-Over


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5.33

Guidelines Volume

Waves < Primary Degree


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Normally, 3rd wave volume > 5th wave volume

5th wave volume > 3rd wave volume = 5th wave extension

Waves > Primary Degree

Higher volume in 5th waves

All-time high volume at terminal points in bull markets

Volume often spikes briefly at the throw-over point of aparallel trend channel line or a diagonal triangle resistance

line. Volume contracts in corrective waves.

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Volume


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5.35

Post-Triangle Thrust Measurement


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5.38

Summary

Two motive waves in a five wave sequence willtend toward equality.


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tend toward equality.

If the second wave is sharp, then the fourth wave isusually sideways, and vice versa.

Corrective waves usually end in the span of theprevious fourth wave of one lesser degree.

Impulse waves tend to be bounded by a channelcomposed of two parallel lines.

A throw-over/throw-under occurs when wave 5terminates beyond the trend channel.

The post-triangle thrust measurement estimatesprice target for the next wave in the pattern of one

larger degree.

5.39

Wave Personality


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6.00

Wave Personality


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6.01

Fibonacci Relationships In Financial Markets


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The Golden Ratio

PHI "

.618 or 1.618

7.00

Golden Ratio, PHI, "


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7.01

Golden Ratio, PHI, "


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7.02

Fibonacci Relationships are Seen

i Ti d A lit d


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in Time and Amplitude

Retracements

Multiples

7.03

Retracements


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7.04

Retracements


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7.05

Retracements


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7.06

Retracements


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7.07

Retracements


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7.08

Fibonacci Time Relationships


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7.14

Fibonacci Time Relationships


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7.15

Summary

The Fibonacci Ratio (!), an irrational number approximating .618,known as the Golden Ratio, is found in nature, human biology,human thought and aggregate human behavior such as the stock


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human thought, and aggregate human behavior such as the stock

market.

The Wave Principle is a robust fractal governed by Fibonaccimathematics. Sharp wave corrections tend to retrace 61.8% or 50% of the

previous wave.

Sideways corrections tend to retrace 38.2% of the previous wave. Subdivisions of impulse waves tend to be related by Fibonacci

numbers .618, 1.0, 1.618 and 2.618.

Subdivisions of corrective waves tend to be related by Fibonaccinumbers .382, .618, 1.0 and 1.618.

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8.08



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8.10

Throw-Over


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8.11

Wave Personality


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8.14

Fibonacci Relationships In Financial Markets


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The Golden Ratio

PHI "

.618 or 1.618

8.15

Retracements


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8.16

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