Patterns Repeat

Dec 17th, 2010

It has been a few days since our last post. We have been extremely busy but we wanted to take a minute to show how patterns repeat themselves over and over. It is important to understand that there are different degrees of the patterns and this is a great example of just that.

How we labeled it is not important meaning; the 1-8 is just a reference point to look at on the chart it is not a specific 1-8 pattern. We could have labeled it 10-18 it does not matter. Also this is not a Elliott Wave label.

In looking at the chart you can start at the left hand side where it says "Start of pattern" in blue. The 778.00 high was actually a target off the last wave but for this example just know it is a important high so we are looking for a correction. We went over that high live in our members Webinar. From that high we came down to make 1 then up to make 2 and so on to get to the "middle of the pattern". It is important to know that we have a way that we actually calculate each minor wave within what is labeled on this chart. It is also important to know on each leg or step of the pattern we also have a way to know where the next leg has the highest odds of completing.

We are predicting in a way that makes since and a way that we can repeat the thought every time on every leg. For this post it is too complex to try to explain each step so we just labeled the bigger waves.

Our target for the "middle of the pattern" was 766.00 and we had this number when the TF was at the 775 level. Just like we had 768.00 for wave 3 completion. These targets were only ticks off and we had them hours if not a day before they were hit. ALL of these videos are archived so all new members can go back and watch them. Anyone can say they have targets after the fact but we save all videos that are made prior to the targets so we cannot lie. Also these levels were called live through our IM intra-day alerts.

So as we follow the 1-8 on the first pattern you will see we get to the top of 8 where that is the end of pattern 1. Remember there were probably true patterns inside the bigger pattern which is 1-8 so you can gain odds on every leg before it even gets to that level.

The main thing we are trying to point in this article is see how at the top of 8 we start the process over with a new 1-8. If you look the second 1-8 looks exactly like the first 1-8 pattern except it is on a smaller degree that the first 1-8 pattern. Really look at the chart and you will see how it is almost identical.

Just like on the first 1-8 the second 1-8 was also calculated to the tick on most every turning point. Just like the first wave 5 the second wave 5 was hit within two ticks. That level is where most people are looking to short and we are looking to go long because it is support and the whole 1-8 is a bullish correction. Yes, the market can go down and it is still bullish that is what makes the higher lows.

This chart might seem complex to you now and maybe that is because patterns are new to you or maybe because you really do not know what to look for on each leg to confirm the last leg. It is a process to break down the market but it is absolutely necessary if you want to understand which direction you should be trading.

Things that look complex are only complex if you do not know what you are looking for. I know to some looking at this they might think this is over your head or how can anyone see this is real-time? The truth is it is actually easier than you think. Members that have only been with us two weeks could see this pattern before it was completed. Again, it is knowing what to look for and stepping back to see the bigger picture.

Some might say this is meaningless but it is actually the 100% opposite of meaningless this is how you make money in the markets. What if you knew wave 5 was support? Or that wave 2 was resistance? Or that wave 6-7-8 should be bought NOT shorted? Oh yea and the top of 8 on both patterns were almost the exact upper target to stop going long. Don't believe us? I get it there is a lot of BS out there but this is why we save our videos and we can not write something that is not the truth or we would be called out on it very quickly.

The point of this article is not to say you should have seen this because maybe you do not see the bigger pattern or do not know what to even look for. The point is to show you how patterns are very important to your trading and it is worth your time to learn them. Learn them from us or someone else the choice is yours but know that we have been trading for 15 years and we see that 95% of educators teach the pattern wrong because they are trading it wrong.

We are not bashing anyone because for how they trade maybe it works but for the way we trade we have a specific way to look at it and understand each step in the process. It is also important to say that we use bigger charts so we know the direction these patterns should be traded meaning; throughout both of these patterns we know we should really only be going long and all shorts are counter trend. You can trade it counter trend but it is important to know that you should look to cover the trade quicker before the targets are hit and trade less contracts.

Have a nice weekend,

www.eMiniSchool.com