Tag: Jeffrey Kennedy

Traders and Trendlines: A Match Made In Opportunity Heaven

Posted on by The INO.com Team

By Elliott Wave International
It's the start of the winter holidays -- which, if your family is anything like mine, is also the beginning of a long tradition of deeply regrettable line-crossing, i.e.:

  • Crossing that line into interrogating "new" dinner guests as to why they are still single
  • Crossing that line into inviting your recently divorced sister-in-law to "stay as long as" she needs
  • Crossing that line into a third (no, let's be honest) fourth helping of pecan pie

In these cases, crossing "the line" is the first step down a proverbial mine field of emotional and physical discomfort. And there's no going back!

But in the world of technical analysis of financial markets, crossing one kind of line is often the first step to identifying a high-confidence trade set-up. The line I'm talking about is the trendline. Continue reading "Traders and Trendlines: A Match Made In Opportunity Heaven" →

The 2 Most Important Keys to Successful Trading

Posted on by The INO.com Team

Examples from Whole Foods Market (WFM) and Reynolds American, Inc (RAI) show you what to do (or not) to trade successfully with Elliott.

By Elliott Wave International

After 20 years of experience applying Elliott wave analysis in real markets, our Senior Analyst Jeffrey Kennedy says that it remains the only tool that will tell him -- down to the tick, to the pip, even to the penny – when his forecast is no longer viable.

That, according to Kennedy, are two most important keys to successful trading:

  1. "Know where you are wrong," and
  2. "Don't pick tops and bottoms"

See the logic behind Kennedy's wisdom by reviewing these two timeless lessons from his Trader's Classroom service: Whole Foods Market, Inc. (WFM) and Reynolds American, Inc. (RAI). Then, see how you can get more free lessons during Kennedy's popular Trader Education Week, going on now!

WFM's forecast was right and RAI's was wrong. While price evidence was compelling for both issues, the forecast in WFM was in the direction of the trend and RAI's incorporated top picking. Here's what happened: Continue reading "The 2 Most Important Keys to Successful Trading" →

3 Ways to Identify Support and Resistance - 5 Chart Examples

Posted on by The INO.com Team

By: Elliott Wave International

Today's lesson considers three ways to identify price support and resistance in the markets you trade.

  1. Previous highs and lows
  2. Trendline support
  3. Fibonacci Ratios

These examples are adapted from Jeffrey Kennedy's Trader's Classroom service.

1) Uptrends terminate at resistance while downtrends terminate at support. Previous highs and lows often act as resistance and support.

In ALCOA Inc (AA), the September 2012 selloff found support near the previous July 2012 low.

The February 2013 peak occurred following a test of resistance at the January peak at $9.33. Continue reading "3 Ways to Identify Support and Resistance - 5 Chart Examples" →

How to Find Trading Opportunities in ANY Market: Fibonacci Analysis

Posted on by The INO.com Team

By: Elliott Wave International

Elliott Wave International's Senior Analyst Jeffrey Kennedy is the editor of our Elliott Wave Trader's Classroom and one of our most popular instructors. Jeffrey's primary analytical method is the Elliott Wave Principle, but he also uses several other technical tools to supplement his analysis.

You can apply these methods across any market and any time frame.

Learn how you can get a free 14-page Fibonacci eBook at the end of this lesson.

The primary Fibonacci ratios that I use in identifying wave retracements are .236, .382, .500, .618 and .786. Some of you might say that .500 and .786 are not Fibonacci ratios; well, it's all in the math. If you divide the second month of Leonardo's rabbit example by the third month, the answer is .500, 1 divided by 2; .786 is simply the square root of .618.

There are many different Fibonacci ratios used to determine retracement levels. The most common are .382 and .618.

The accompanying charts also demonstrate the relevance of .236, .382, .500 .618 and .786. It's worth noting that Fibonacci retracements can be used on any time frame to identify potential reversal points. An important aspect to remember is that a Fibonacci retracement of a previous wave on a weekly chart is more significant than what you would find on a 60-minute chart. Continue reading "How to Find Trading Opportunities in ANY Market: Fibonacci Analysis" →

Here's Why Trendlines Are Your New Best Friend, Part 2

Posted on by The INO.com Team

By Elliott Wave International

One of the best aspects of technical analysis is also its biggest drawback: Namely, there are far too many indicators to choose from.

Candlesticks to channels, Relative Strength Index to Bollinger Bands, double tops to moving averages...

Geez! With so many options, you're liable to feel like a "hanging man" beneath "dark cloud cover."

But in reality, all you need is one good, solid place to start; one indicator that can be your technical rock of Gibraltar. Continue reading "Here's Why Trendlines Are Your New Best Friend, Part 2" →