Trader Education Week, Free!

By Elliott Wave International (sponsored post)

Announcing Trader Education Week — A FREE trading event that will teach you how to spot trading opportunities in your charts. Spend March 20-24 getting free trading lessons that you can apply to your trading immediately — from one of the world’s foremost market technicians, Jeffrey Kennedy. Register now for your FREE week of trading lessons and get immediate access to 2 introductory resources.


Dear Trader,

You have an opportunity to spend the next week learning how you can spot high-confidence trade setups in the charts you follow every day.

Elliott Wave International (EWI) is hosting a free Trader Education Week, March 20-24. Register now and get instant access to free trading resources — and you’ll receive more lessons as they’re unlocked each day of the event. You’ll learn about Elliott waves, Fibonacci analysis, indicators and oscillators, Japanese candlesticks and more!

Jeffrey Kennedy, EWI Senior Instructor and a Chartered Market Technician, has taught thousands how to improve their trading through his courses, subscription services and as an adjunct professor of technical analysis at Georgia Institute of Technology (Georgia Tech). Now you have the opportunity to be a student in his online classroom, as he takes complex technical methods and tools and breaks them down so that you can apply them to your trading immediately.

Don’t miss this opportunity to learn how to spot trading opportunities in the markets you follow.

Register today and get your first 2 free trading resources immediately, plus we’ll alert you to valuable new resources unlocked every day beginning March 20.

Register for Trader Education Week — It’s FREE!

How to Easily ID Support and Resistance

By Elliott Wave International

See an example in the chart of Bank of America (BAC)

You’ve probably heard the terms “support” and “resistance.” Common technical analysis terms, they are price points on a chart that can help determine when a move will pause, or even stop and reverse.

There are many different ways to identify support and resistance on your charts. In this 6-minute lesson, the editor of our Trader’s Classroom education service, Jeffrey Kennedy, shows you one of the easiest and most effective methods (example: Bank of America, NYSE: BAC).


6 Lessons to Help You Find Trading Opportunities in Any Market

Get 6 free lessons that will teach you how to spot trading opportunities in the charts you’re using every day Elliott Wave International’s Jeffrey Kennedy shows you how to use Elliott waves, Fibonacci analysis, candlestick analysis, and more, to help you become a more successful technical trader.

Get instant access

This article was syndicated by Elliott Wave International and was originally published under the headline How to Easily ID Support and Resistance on Your Charts. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

A Two-Bar Pattern That Points to Trade Setups

By Jeffrey Kennedy of EWI

A Two-Bar Pattern that Points to Trade Setups

Some people like to get outside on the weekends, maybe playing tennis or working in the yard. Some people like to visit their friends or cook a big meal or go out to see a movie. And some people who are passionate about their work — such as Elliott Wave International’s futures analyst Jeffrey Kennedy — like to stare at hundreds of price charts on their computer screen to find patterns that point to trade setups. We used to worry for his health but not anymore, because he’s been doing it for years and he comes up with some neat stuff. A case in point is his discovery of a two-bar pattern that he named the Popgun. Find out more in this excerpt from the Club EWI eBook, How to Use Bar Patterns to Spot Trade Setups.


The Popgun
I’m no doubt dating myself, but when I was a kid, I had a popgun — the old-fashioned kind with a cork and string (no fake Star Wars light saber for me). You pulled the trigger, and the cork popped out of the barrel attached to a string. If you were like me, you immediately attached a longer string to improve the popgun’s reach. Why the reminiscing? Because “Popgun” is the name of a bar pattern I would like to share with you this month. And it’s the path of the cork (out and back) that made me think of the name for this pattern.

The Popgun is a two-bar pattern composed of an outside bar preceded by an inside bar. (Quick refresher course: An outside bar occurs when the range of a bar encompasses the previous bar and an inside bar is a price bar whose range is encompassed by the previous bar.) In Chart 1 (Coffee), I have circled two Popguns.

So what’s so special about the Popgun? It introduces swift, tradable moves in price. More importantly, once the moves end, they are significantly retraced, just like the popgun cork going out and back. As you can see in Chart 2 [not shown], prices advance sharply following the Popgun, and then the move is significantly retraced. In Chart 3 [not shown], we see the same thing again but to the downside: prices fall dramatically after the Popgun, and then a sizable correction develops.

How can we incorporate this bar pattern into our Elliott wave analysis? The best way is to understand where Popguns show up in the wave patterns. I have noticed that Popguns tend to occur prior to impulse waves — waves one, three and five. But, remember, waves A and C of corrective wave patterns are also technically impulse waves. So Popguns can occur prior to those moves as well.

As with all my work, I rely on a pattern only if it applies across all time frames and markets. To illustrate, I have included two charts of Sirius Satellite Radio (SIRI) that show this pattern works equally well on 60-minute and weekly charts. Notice that the Popgun on the 60-minute chart [not shown] preceded a small third wave advance. Now look at the weekly chart [not shown] to see what three Popguns introduced (from left to right), wave C of a flat correction, wave 5 of (3) and wave C of (4).


Find out How to Use Bar Patterns to Spot Trade Setups

In this comprehensive 15-page eBook, Jeffrey provides each pattern with a definition, illustrations of its form, lessons on its application and how to incorporate it into Elliott wave analysis, historical examples of its occurrence in major commodity markets, and ultimately — compelling proof of how it identified swift and sizable moves.

Download the free, 15-page eBook today

This article was syndicated by Elliott Wave International and was originally published under the headline A Two-Bar Pattern that Points to Trade Setups. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.