SEMINAR

By
Asia Fx Traders
ike A Pro with Elliot Wave
Trade In earn How L Forex
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Malaysia orex Training Centre F
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 order
to invest in the futures and options markets. Dont trade with money you cant afford to lose. This
letter is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being
made that any account will or is likely to achieve profits or losses similar to those discussed on
this 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 and
potentially profitable opportunity for educated and experienced investors. However, before
deciding to participate in the Forex market, you should carefully consider your investment
objectives, level of experience and risk appetite. Most importantly, do not invest money you
cannot 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 for
changing 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 will
have an equally proportional effect on your deposited funds. This may work against you as well
as for you. The possibility exists that you could sustain a total loss of initial margin funds and be
required to deposit additional funds to maintain your position. If you fail to meet any margin call
within the time prescribed, your position will be liquidated and you will be responsible for any
resulting losses. Investors may lower their exposure to risk by employing risk-reducing strategies
such 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 price
volatility with this announcement. Currency spreads will typically widen just before the release
and will remain wide for a few minutes after. If the announcement is a shock to the consensus
estimate, the price of the currency pair could gap significantly. For example, the price on the
EURUSD 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 Stop
placed before the announcement at 1.2830 would turn into a Market Order and would be filled at
the 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 Payroll
announcement. While this is an extreme example, this is what is possible with trading during
economic announcements. Basically, plan on the spreads widening and if you are trading with a
Buy or a Sell Stop entry order, do not anticipate being filled at your entry price. You will be filled at
the prevailing market price after the release, and this market price could be significantly different
from your desired price of your entry order.
No representation is being made that these products or services, and any associated advice or
training, will guarantee profits, or not result in losses from trading. Neither the products, nor any
training services held in conjunction therewith, including, without limitation, through online
seminars, alert services, in conjunction with our advertising and promotional campaigns, during
our in-person seminars or otherwise, should be construed as providing a trade recommendation
or the giving of investment advice. The purchase, sale or advice regarding a currency can only be
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production and maintenance of these products, services or this site, is a registered Broker/Dealer
or Investment Advisor in any State or Federally-sanctioned jurisdiction. All purchasers of products
and services referenced at this site are encouraged to consult with a licensed representative of
their choice regarding any particular trade or trading strategy.
Asia Fx Traders only provides a Forex Training in the Forex Trading. All Forex Technical
Analysis information on this website or during the Forex Trading Seminar is for educational
purposes 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 in
losses 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 of
investment available in the financial markets and suitable for sophisticated individuals and
institutions. The possibility exists that you could sustain a substantial loss of funds and therefore
you should not invest money that you cannot afford to lose. Nothing in this presentation is a
recommendation 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 from
the 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.




CONTENTS



1. Knowing the basic of Elliott Waves and Principles


2. Trading with Elliott Waves, Strategy and Target.


3. Trading System

Bujang
Senang




The Basics of the
Wave Principle
Presented by Elliot Wave MasterTrader
1.00 Introduction Ralph Nelson Elliotts Discovery
2.00 Motive Waves
3.00 Corrective Waves
4.00 Rules
5.00 Guidelines
6.00 Wave Personalities
7.00 Fibonacci Relationships
The Basics of the Wave Principle
1.01
Financial Market Behavior Characteristics
Emotional (Unconscious)
Subjective
Impulsive
Ignorance and Uncertainty
Herding
Values Cannot Revert To Anything
1.02
The Wave Principle
Financial Markets are Patterned
1.03
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 the
same patterns and how those, in turn, become the building
blocks 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
1.05
1.06
1.07
1.08
1.09
A More Realistic Wave Depiction
1.10
1 2 3
4 5
6
1.11
6 5 7
1.12
Predict Market Direction
Identify turning Points
Provide Guidance for Entering and Exiting Positions
The Wave Principle
1.14








MOTIVE WAVES






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 the
longest
2.01
2.00
MOTIVE WAVES
Five-Wave Structures
Impulse
1. Extensions
2. Truncations
Diagonal Triangles
2.02
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
2.04
2.05
2.06
2.08
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
2.09
2.10
2.11
2.12
2.13
2.14
TRUNCATIONS
Key Characteristics
Wave 5 does not exceed the end of wave 3
Contains necessary five subwaves
Often occurs after a strong third wave
2.15
2.16
2.17
2.18
DIAGONAL TRIANGLES
Key Characteristics
Wave 4 almost always moves into the price
territory 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 two
converging lines
2.19
Diagonal Triangles
2.20
2.21
2.23
2.24
2.25
2.26
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
2.27







CORRECTIVE WAVES
Characteristics of Corrective Waves
Zigzag
3.01
3.00
3.02
Characteristics of Corrective Waves
Flat
3.03
3.04
Triangle
3.05
Characteristics of Corrective Waves
Horizontal Triangles
3.06
Running Triangles
3.08
3.09
3.11
3.12
3.13
Characteristics of Corrective Waves
Combination
3.14
Combination
3.15
3.16
3.17
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
3.18
Rules
Of waves 1, 3 and 5, wave 3 can never be the
shortest wave.
Wave 2 can never retrace more than 100% of
wave 1.
The end of wave 4 can never overlap the
orthodox end of wave 1.
Strong Guideline
No portion of wave 4 can enter the price territory
of wave 1 or wave 2.
4.00
Rules
4.01
Rules
4.02
Rules
This five-wave move
cannot be the start of
a new trend. It can be
wave C of a
corrective pattern.
4.03
Rules
What might this be?
Significant Bottom
4.04
Rules
What might this be?
4.05
Rules
Wave 3 is never the shortest of
waves 1, 3 and 5. This could be
part of a wave 3 extension.
4.06
Rules
What might this be?
Significant Bottom
4.07
Rules
What might this be?
4.08
Wave 4 does not overlap the price territory
of wave 1. This could be the start of a 3
rd
wave extension or an A-B-C correction.
Rules
4.09
Guidelines
Equality
Alternation
Depth
Channeling
Throw-Over
Volume
Post-Triangle Thrust
Measurement
5.00
Guidelines
Wave Equality
Two of the motive waves in a five-wave
sequence will tend toward equality in time and
magnitude.
This is generally true of the two non-extended
waves.
For example, if wave 3 is extended then waves
1 and 5 will tend toward equality.
5.01
Equality
5.02
Equality
5.03
Guidelines
Alternation
Within Impulse Waves
If wave 2 is a sharp correction, expect wave 4
to be a sideways correction, and vice versa.
Sharp corrections never include a new price
extreme. Example: Zigzags
Sideways corrections usually include a new
price extreme. Examples: Flats, Triangles, and
Combinations
Diagonal triangles do not display alternation in
subwaves 2 and 4.
5.04
Alternation within Impulse Waves
5.05
Alternation within Impulse Waves
5.06
Alternation within Impulse Waves
5.07
Alternation within Impulse Waves
5.08
Alternation within Impulse Waves
5.09
Guidelines
Alternation
Within Corrective Waves
If a correction begins with a flat a-b-c structure
for 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-c
zigzag for wave A, wave B will stretch out into a
more complex a-b-c zigzag.
5.10
Guidelines
Alternation within Corrective Waves
5.11
Guidelines
Alternation within Corrective Waves
5.12
Alternation within Corrective Waves
5.13
Alternation within Corrective Waves
5.14
Alternation within Corrective Waves
Zigzag
5-3-5
5.15
Guidelines
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 and
most commonly near its terminus.
5.16
Guidelines
Depth of Corrective Waves
5.17
Depth of Corrective Waves
5.18
Depth of Corrective Waves
5.19
Guidelines
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
5.21
Channeling in Impulse Waves
5.22
Channeling in Impulse Waves
5.23
Channeling in Impulse Waves
5.24
Channeling in Impulse Waves
5.25
Channeling in Impulse Waves
5.26
Channeling in Impulse Waves
5.27
Guidelines
Channeling in Zigzags
5.28
Channeling in Corrective Waves
5.29
Channeling in Corrective Waves
5.30
Channeling in Corrective Waves
5.31
Guidelines
Throw-Over
5.32
Throw-Over
5.33
Guidelines Volume
Waves < Primary Degree
Normally, 3
rd
wave volume > 5
th
wave volume
5
th
wave volume > 3
rd
wave volume = 5
th
wave extension
Waves > Primary Degree
Higher volume in 5
th
waves
All-time high volume at terminal points in bull markets
Volume often spikes briefly at the throw-over point of a
parallel trend channel line or a diagonal triangle resistance
line.
Volume contracts in corrective waves.
5.34
Volume
5.35
Post-Triangle Thrust Measurement
5.36
5.38
Summary
Two motive waves in a five wave sequence will
tend toward equality.
If the second wave is sharp, then the fourth wave is
usually sideways, and vice versa.
Corrective waves usually end in the span of the
previous fourth wave of one lesser degree.
Impulse waves tend to be bounded by a channel
composed of two parallel lines.
A throw-over/throw-under occurs when wave 5
terminates beyond the trend channel.
The post-triangle thrust measurement estimates
price target for the next wave in the pattern of one
larger degree.
5.39
Wave Personality
6.00
Wave Personality
6.01
The Golden Ratio
PHI "
.618 or 1.618
Fibonacci Relationships In Financial Markets
7.00
Golden Ratio, PHI, "
7.01
Golden Ratio, PHI, "
7.02
Fibonacci Relationships are Seen
in Time and Amplitude
Retracements
Multiples
7.03
Retracements
7.04
Retracements
7.05
Retracements
7.06
Retracements
7.07
Retracements
7.08
Fibonacci Time Relationships
7.14
Fibonacci Time Relationships
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
market.
The Wave Principle is a robust fractal governed by Fibonacci
mathematics.
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 Fibonacci
numbers .382, .618, 1.0 and 1.618.
7.16
Alternation within Corrective Waves
8.08
Depth of Corrective Waves
8.09
Channeling in Impulse Waves
8.10
Throw-Over
8.11
Wave Personality
8.14
The Golden Ratio
PHI "
.618 or 1.618
Fibonacci Relationships In Financial Markets
8.15
Retracements
8.16