Dynamic Trader Workshop Summary PDF

End-of-Wave (EOW) Price Target Zone Summary Table – Page 1
Chapter Three – Dynamic Price Trade Strategies

Module 5 – End-of-Wave Price Target Zones
End-of-Wave (EOW) Price Target Zone Summary Table

Copyright 2005, Dynamic Traders Group, Inc.
EOW Label EOW Price Projections

and Typical Primary and secondary projections.
Subdivisions Typical Min, typical and maximum projections, if applicable
Smaller time frame (sub division) EOW target to include.
Ratios in bold are the primary projections for that set.
EOW 1 or A Since a Wave 1 or A is the first section of a new E-wave pattern,
W.1: Five-Waves you cannot make projections based on completed sections of the
W.A: Usually five- new pattern. The EOW 1 or A will usually be at a retracement of the
waves but may be last section of the prior pattern.
three. Retracements: 38.2%, 50%, 61.8%, 78.6%
Smaller Time Frame EOW: EOW-5 of W.1 or A.
EOW 2 or B Primary Projections
Usually an ABC Retracements of W.1 or A: 50%, 61.8%, 78.6%.
correction. May A daily close past the 78.6% retracement signals it is probably not a
be a complex corrective Wave-2 or B and the prior trend should continue.
correction. Minimum W.2 or B: 50% retracement of W.1 or A.
Maximum W.2 or B: 78.6% Retracement of W.1 or A
Smaller Time Frame EOW: EOW W.C of 2 or B projections.
EOW 3 or C Primary Projections
Both should sub- Alternate Price Projections of W.1 or A from the W.2 or B extreme:
divide into five- 62%, 100%, 162%, 262%.
waves. Secondary Projections
External Retracements of W.2 or B: 127%, 162%, 262%
Minimum W.C Target: 62% APP of W.A
Typical W.C and Minimum W.3 Target: 100% APP of W.1 or A
Maximum W.C and Typical W.3 Target: 162% APP W.1 or A
Smaller Time Frame EOW: W.5 of 3 or C projections.
Continued on the next page.
Copyright 2005, Dynamic Traders Group, Inc., www.DynamicTraders.com

End-of-Wave (EOW) Price Target Zone Summary Table – Page 2
EOW 4 Primary Projections

Often ABC but W.3 Ret: 38.2%, 50%, 61.8%
may take the form Secondary Projections
of any “complex” APPs of W.2 projected from the W.3 extreme: 62%, 100%, 162%
correction.
Minimum W.4 Target: 38.2% retracement ofW.3.
Maximum W.4 Target: 61.8% retracement W.1-3.
Smaller Time Frame EOW: EOW-C of 4 target zones if it appears
W.4 will be an ABC.
EOW 5 Primary Projections
Five-Waves APPs of W.1-3 (range from the beginning of W.1 to the end of W.3)
projected from the W.4 extreme: 38.2%, 61.8%, 100%
Secondary Projections
APPs of W.1 projected from the W.4 extreme: 62%, 100%, 162%
Ext Ret. Of W.4: 127%, 162%
Typical W.5 Target: Either the 38.2% or 61.8% APP of W.1-3. There
is not a min W.5 target. W.5 is usually complete near one of these
two projections. Which projection is more likely to be near the end of
wave 5 will depend on what secondary projections fall near either of
these two projections.
Maximum W.5 Target: 100% APP of W.1-3.
Smaller Time Frame EOW: EOW-5 of 5.
Copyright 2005, Dynamic Traders Group, Inc., www.DynamicTraders.com

End-of-Wave (EOW) Price Target Zone Summary Table
Copyright 2005, Dynamic Traders Group, Inc.
EOW Price Projections

Primary and secondary projections.
Typical Min, typical and maximum projections, if applicable
Smaller time frame (subdivision) EOW target to include.
Ratios in bold are the primary projections for that set.
EOW 1 or A
W.1 = Five Waves; W.A usually five but may be three waves.
Since a Wave 1 or A is the first section of a new E-wave pattern, you cannot make projections based
on completed sections of the new pattern. The EOW 1 or A will usually be at a retracement of the last
section of the prior pattern.
Retracements: 38.2%, 50%, 61.8%, 78.6%
Smaller Time Frame EOW: EOW-5 of W.1 or A.
EOW 2 or B
Usually an ABC correction but may be a complex correction.
Primary Projections
Retracements of W.1 or A: 50%, 61.8%, 78.6%.
A daily close past the 78.6% retracement signals it is probably not a corrective Wave-2 or B and the
prior trend should continue.
Minimum W.2 or B: 50% retracement of W.1 or A.
Maximum W.2 or B: 78.6% Retracement of W.1 or A
Smaller Time Frame EOW: EOW W.C of 2 or B projections.
EOW 3 or C
Both should subdivide into five-waves.
Primary Projections
Alternate Price Projections of W.1 or A from the W.2 or B extreme: 62%, 100%, 162%, 262%.
External Retracements of W.2 or B: 127%, 162%, 262%
Minimum W.C Target: 62% APP of W.A
Typical W.C and Minimum W.3 Target: 100% APP of W.1 or A
Maximum W.C and Typical W.3 Target: 162% APP W.1 or A
Smaller Time Frame EOW: W.5 of 3 or C projections.
EOW 4
Often an ABC but may be any form of a complex correction.
Primary Projections
W.3 Ret: 38.2%, 50%, 61.8%
Minimum W.4 Target: 38.2% retracement ofW.3.
Maximum W.4 Target: 61.8% retracement W.1-3.
Smaller Time Frame EOW: EOW-C of 4 target zones if it appears W.4 will be an ABC.
EOW 5
Should always be five-waves.
Primary Projections
APPs of W.1-3 (range from the beginning of W.1 to the end of W.3) projected from the W.4 extreme:
38.2%, 61.8%, 100%
Ext Ret. Of W.4: 127%, 162%
Typical W.5 Target: Either the 38.2% or 61.8% APP of W.1-3. There is not a min W.5 target. W.5 is
usually complete near one of these two projections. Which projection is more likely to be near the end
of wave 5 will depend on what secondary projections fall near either of these two projections.
Maximum W.5 Target: 100% APP of W.1-3.
Smaller Time Frame EOW: EOW-5 of 5.
Dynamic Trader Workshop – Chapter 2; Module 2 - Support Material – Page 1
Chapter Two – Elliott Wave Analysis

Module 2 –Trends and Counter Trends
Trends and Counter Trends Overview

There is one trend and two frequent counter-trend patterns we will learn in this
course.
Five-Wave Impulse Trend: Made in the direction of the higher time frame trend
direction.
1. 5 Distinct Sections
2. Higher highs and higher lows (bull trend) or lower highs and lower lows (bear
trend).
3. Section Highs and Lows do not overlap
Simple three-wave or three Section ABC Counter Trend (correction)

1. If Section Highs and Lows overlap, it should not be an impulse trend and
should be a counter-trend.
2. The most typical counter-trend is three sections which make up a simple ABC
correction.
Complex Counter Trend
1. More Than 3 Distinct Sections
2. Multiple Sections Overlap
3. It is very difficult to project the completion of a complex counter trend.
4. The most important thing is to recognize it is a counter-trend and not an
impulse trend.
Important of Identifying the Position of a Market Within A Trend or

CounterTrend.
1. Helps determine which side of the market to trade. If a trend or counter trend is
not complete, you trade the side that the trend or counter trend is moving.
2. Helps identify if the patterns signal that a trend is complete. If the pattern is in
a position to be complete, it will be an early warning of a reversal and you will
trade the other side of the market.
Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com




Module 3 – Five Wave Trends
Five Wave Trend Rules

1. Wave 2 cannot exceed the beginning of Wave 1.
2. Wave 4 cannot make a daily close into the closing range of Wave 1.
3. Wave 3 cannot be the shortest in price of Waves 1, 3, and 5.




Module 4 – Three Wave Counter Trends
Simple ABC Counter Trends

The most frequent counter trend is a simple three-wave, ABC, also called a
zigzag.
We always assume at least a three-wave corrective pattern will be made even
though some other more complex or irregular corrective pattern may eventually
be made.
There are variations of a three wave correction such as an irregular ABC and
others, but in this course we are going to keep it simple and focus on the most
typical three-wave, correction - the simple ABC.
GUIDELINES FOR A SIMPLE ABC

1. A Wave B should not exceed the beginning of Wave A.
2. Wave C should exceed the extreme of Wave A.
3. A trade beyond the extreme of the W.B signals an ABC correction is complete.



Module 5 – Complex Counter Trends
Complex Counter Trends

A CCT is any correction other than a simple ABC counter trend.
1. The key factor to identify that the market is making a complex counter
trend and not a new trend is if the sections "overlap."
2. Overlapping sections are always a pattern indication that a correction is
probably being made and not a trend.
3. There is no definitive pattern guideline or rule that will signal a complex
counter trend is complete.
4. In most cases, when the market exceeds the extreme of the last section,
the complex counter trend is complete.



Module 6 – Subdivisions
Subdivisions of a Five Wave Trend

1. Waves 1, 3, and 5 of a 5W trend are the trend waves (move in the direction of
the five wave trend). Each should subdivide into five waves.
2. Waves 2 and 4 of a 5W trend are counter trend waves (move against the
direction of the five wave trend). Each should subdivide into 3W simple ABC
or complex counter trend. ABC corrections are more common than complex
corrections.
Subdivisions of a Three Wave Counter Trend

1. W.A of an ABC usually subdivides into five waves.
2. W.A may subdivide into three waves. If there is a 3W ABC that does not
reach the typical WC price target zone, then it is probably an ABC-three
wave, Wave A)
3. W.B of an ABC is a counter trend to the counter trend. W.B should subdivide
into an ABC or complex counter trend.
4. W.C of an ABC should always subdivide into five waves.
Subdivisions of a Complex Counter Trend

1. Each section in the direction of the counter trend should subdivide into five
waves.
2. Each section against the counter trend direction should subdivide into three or
more waves.
3. The last section of a complex correction should subdivide into five waves.




Module 7 – Trend Reversal Pattern Signals
Five-Wave Trend Reversal Pattern Signal

When the extreme W.4 high or low is taken out.
Simple ABC Trend Reversal Pattern Signal

When the extreme W.B high or low is taken out.
Pattern Reversal Signals Are Identified In Advance

Once the next to last section of a pattern (W.4 of a 5W trend or W.B of a 3W
trend is identified) the Pattern Reversal Signal can be identified.
The Pattern Reversal Signal is made when the W.4 or W.B extreme is taken out.



Module 8 – Elliott Wave and Multiple Time Frames
Multiple Time Frame (MTF) with E-Wave Trend Reversals

If we can identify the smaller time frame subdivisions of the larger time frame
sections, we should be able to identify the pattern reversal signal of the larger
time frame much earlier than if we do not identify the smaller time frame
subdivisions.
Practical Elliott wave and multiple time frames can be an important part of a
trading plan that help to identify trade opportunities and identify entry signals and
stops with minimum capital exposure and high reward/risk ratio.
MTF Pattern Reversal Signal For A Five Wave Trend

Wave 5 of a 5-Wave Trend should divide into 5-Waves
If the subdivisions of W.5 of a 5W trend are identified, what is the PRS of the
smaller time frame subdivision that signals the larger time frame W.5 is
complete?
• When the W.4:5 (wave four of five) extreme is taken out.
There will be less Capital Exposure with a trade entry at the W.4:5 entry than
with a trade entry at the larger time frame W.4 entry.
MTF Pattern Reversal Signal For a Wave-C

Wave C of a 3-Wave Counter Trend should divide into Five-Waves
If the subdivisions of W.C of a 3-Wave trend are identified, what is the PRS of the
smaller time frame subdivision that signals the larger time frame W.C is
complete?
• When the W.4:C (wave four of C) extreme is taken out.
There will be less Capital Exposure with a trade entry at the W.4:C entry than
with a trade entry at the larger time frame W.B entry.


Dynamic Trader Workshop – Chapter Three; Module 2 - Support Material – Page 1

Module 2 – Retracements
Retracement Overview
A retracement is a price movement in the opposite direction of the previous trend
direction.
There are two kinds of retracements, Internal and External. Most traders are
familiar with internal retracements and the common Fib ratios. Most traders are
not familiar with external retracements. You will learn some Fib related ratios in
this course that are just as important but not used by many traders.
Most highs and lows are made at or very near one of the price retracements.
Retracements are an important part of identifying support, resistance, or trend
reversal targets in advance.
Internal Retracements – Less Than 100%

An internal retracement will always be a correction or counter-trend to the prior
trend. It will retracement a part of the prior trend.
Most common ratios for internal retracements - 38.2%, 50%, 61.8%, 78.6%
External Retracements – Greater than 100%

An external retracement will always be a section that is part of the trend.
Because it is greater than 100% of the section that is being retraced, an external
retracement will represent a new high or low.
Most common ratios for external retracements - 27%, 162%
You will learn in this course how to identify in advance which retracements
are most likely to be support or resistance or trend reversal targets for any
market, any market condition and any time period.

Internal Retracement Example – Less Than 100%
External Retracement Example – Greater Than 100%


Module 3 – Alternate Price Projections
Alternate Price Projection Overview

An Alternate Price Projection (APP) is the proportion of a past swing that moved
in the same direction as the current trend. Trend swings are compared with prior
trend swings and counter-trend swings compared with prior counter-trend
swings.
Retracements are used to help identify the support or resistance of a counter-

trend. Alternate Price Projections are used to help identify support or resistance
targets in the direction of the trend.
Highs and lows in the trend direction are usually made at or very near one of the
Alternate Price Projections.
APPs are an important price projection technique to help identify support or

resistance and trend reversal targets in advance.
APP Ratios used in the Dynamic Trading Method

38.2%
61.8%
100%
162%
262%
The 38.2% and 262% APPs are only used for a few unique E-wave patterns
which you will learn later in this chapter.
Later in this chapter you will learn how to determine in advance which APPs
are most likely to be support or resistance, or trend reversal targets for any
market, any market condition and any time period.

Alternate Price Projection Examples


Module 4 – Support and Resistance Target Zones
Support and Resistance Target Zones Overview

S/R Target Zones are where at least one retracement and one alternate price
projection are within a relatively narrow price range. Most highs and lows are
made at or very near a S/R zone.
To be able to identify S/R zones in advance is an important part of a trading
plan.
S/R Zones Help Identify

Minimum Profit Targets
Trend Reversal Price Zones
When to bring stops very close to the market
How to Identify A S/R Target Zone

1. Make the Int and/or Ext Retracements
2. Make the APPs
3. An S/R zone is a relatively narrow price range which should include one or
more retracement and an APP.
If at a retracement and an APP are not grouped together, there is not a high
probability S/R zone unless you are doing multiple time frame Ret and APP
zones which you will learn later in this chapter.
Dynamic Support/Resistance zones goes way beyond simple Fib
retracements to identify key S/R and trend reversal for any market and any time
frame. By using both retracements and alternate price projections, you are able
to identify in advance which specific price levels have a high probable of
support/resistance or trend reversal.

Support/Resistance Zone Examples


Module 5 – End-of-Wave Price Target Zones
End-of-Wave (EOW) Target Zones Overview

EOW price target zones are unique price projections that are made from the
subdivisions of an E-wave pattern. EOW target zones make E-wave a much
more practical for trade strategies. EOW target zones can only be made when
there is the potential for a clearly defined E-wave pattern developing. When there
is not, basic support/resistance zones are identified as described in the prior
module.
Each EOW target will include 1 or 2 primary EOW projections. The ideal EOW
target zone will include 2 or 3 supporting projections that are near the primary
projections.
The EOW target zones are made as soon as a wave is confirmed complete.
Then we are able to project the high-probability, EOW target(s) for the next
section. The further along the pattern, the more individual price projections that
are made because there are more completed swings in the pattern.
The final wave in a pattern usually has the highest probability of completing
the entire wave pattern and the narrowest EOW range since all of the
subdivisions except the last are complete.
Most EOW targets will have a minimum, typical and maximum target zone.
The min, typical and max target zones are each identified by a primary projection
plus secondary projections that are near the primary projection to form a
relatively narrow range EOW target zone.
Each EOW target zone has its own projections and ratios that are applicable
for that particular EOW target zone. You will learn how to make each of the EOW
projections in advance in this chapter.

End-of-Wave Price Target Zone Examples


Module 6 – Multiple Time Frame Support and Resistance
Multiple Time Frames (MTF) Price Support/Resistance Overview

Each approach to technical analysis including pattern, price and
trend/momentum should use at least two time frames. Multiple time frames are
sections (larger time frame) and subdivisions (smaller time frame) of a trend or
counter trend that S/R zones are made from.
When S/R price projections from a smaller time frame overlap or are very
near the S/R price projections from the larger time frame -
A more narrow range S/R zone is usually formed.
The MFT S/R zone has a higher probability of making S/R or trend reversal.
A MTF S/R zone is where price retracements and APPs from more than one
time frame fall within a relatively narrow range to create a MTF S/R zone.
Multiple Time Frame S/R zones should identify a more narrow range of S/R zone
with a higher probability of S/R and trend reversal than if just one time frame is
used.
More narrow range S/R target zones usually allow less capital exposure on
trade entry and more net profit on trade exit.
How to make MTF S/R Zones

Identify highs and lows of larger time frame to make retracements from.
Make retracements from the larger time frame
Identify highs and lows of smaller time frame to make retracements from and
make the retracements.
Identify highs and lows of two times frames to make the APP’s.
Identify MTF S/R zones

A MTF S/R zone include either -
a retracement from two time fames and at least one APP from one time frame
or
a retracement from one time frame and an APP from two time frames.

Multiple Time Frames Support/Resistance Examples


Module 7 – Multiple Time Frames End-of-Wave Target Zones
Multiple Time Frames (MTF) End-of-Wave Target Zones Overview

Degree is the traditional E-wave term for the smaller and larger subdivisions of E-
wave patterns. The subdivisions are a smaller “degree” of the larger “degree”
section. In this workshop, we use the terms larger and smaller time frame to
mean the same as larger and smaller degree.
The subdivisions of an E-wave section are the smaller time frame of the
larger time frame section.
Multiple time frames EOW targets can only be made if the smaller time frame
subdivisions can be identified.
How to make EOW MTF Target Zones

The procedure is the same for any E-wave pattern and any market or time frame.
1. Identify the larger time frame of an E-wave pattern through the last completed
section (such as through a W.4).
2. Make the EOW price targets of the larger time frame uncompleted section.
(such as the EOW W.5 targets).
3. Identify the last completed subdivision of the last larger time frame completed
section. (such as the W.4 of 5).
4. Make the EOW price targets of the smaller time frame uncompleted section
(such as the EOW 5 of 5 targets).
5. Identify the relatively narrow price range where EOW targets from both time
frames overlap.
6. If a larger and smaller time frame EOW target does not overlap, the emphasis
is on the smaller time frame EOW target.
Benefits of MTF EOW Target Zones

MTF EOW target zones usually produce more narrow range and higher
probability EOW target zones.
More narrow range EOW target zones usually allow less capital exposure on
trade entry and more net profit on trade exit.
The smaller time frame (subdivisions) EOW target zones usually identifies more
narrow range EOW targets than the larger time frame alone is able.

Multiple Time Frames End-of-Wave Target Zones

Dynamic Trader Workshop – Chapter Four; Module 2 - Support Material – Page 1
Chapter Four – Practical Indicator Strategies

Module 2 – Characteristics of Indicators
Indicator Overview
Most indicators represent the momentum of the price trend. In technical analysis,
momentum is another word for Rate-of-Change. Most indicators represent the
ROC or the speed of the price trend.
Price and indicator values usually trend in the same direction but not always.
The indicator may trend in the opposite direction of price which represents a slow
down in the ROC or momentum of the price trend.
New Terms
Overbought (OB): A relatively high indicator value. When the indicator is in a
position for price to make a momentum high but not necessarily a price high.
Oversold (OS): A relatively low indicator value. When the indicator is in a position
for price to make a momentum low but not necessarily a price low.
Indicator Differences
While almost all indicators are similar in that they represent the momentum of the
price trend, they do display this information differently. Some of the differences
between the indicators are -
The sensitivity they have to the momentum or ROC of the price trend.
Whether they have a value limited to 100 or have unlimited values
If they have a maximum values of 100, they will have overbought and
oversold zones. Whether they reach an OB or OS zone at most
momentum reversals
Indicators with no maximum reading such as the MACD do not have OB
and OS zones.
An OB indicator signals the upside should be limited before a momentum
or price reversal is made.
An OS indicator signals the downside in price should be relatively limited

before a momentum or price reversal is made.
An OB indicator signals the upside in price should be relatively limited before
a momentum or price reversal is made.

A momentum reversal may not coincide with a price reversal but the rate of
price advance or decline should decrease following a momentum reversal.
Once we understand what an indicator and its position represents, we will be
able to use that indicator for practical and objective trade strategies. We will also
be able to identify which indicators will be the most useful for Dynamic Trading
trade strategies.



Module 3 – Indicator Settings
Indicator Settings Overview

Most indicators represent the same thing – The momentum or ROC trend. The
terms momentum and Rate-of-Change (ROC) are used interchangeably for
trading purposes.
The best indicator to use that will provide the clearest reversal signals is an
indicator with two lines that cross on a momentum reversal. It could be an
indicator with a fast and slow line or one with histogram bars and a signal line.
The crossover of the two lines is the signal of the change of price momentum.
The most useful indicators will oscillate from at or near the OB to OS zones
with the momentum cycles.
Which Indicator To Use

There is not one best indicator to use. What is important is the trader
understands what the indicator represents. Study the indicator you use to learn
how it reacts to price trends. The Stoc, RSI, MACD and DTosc are all good
indicators to use.
Indicator Settings
Indicator settings reflect the “lookback” period of the indicator. The lookback
period is the number of bars counting back from the most recent bar that are
used to calculate the indicator.
The shorter the lookback period, the more sensitive to momentum changes.
With a too short setting, the indicator will reverse every time the ROC slows
down.
The longer the lookback period, the more lag in the indicator reversal
compared to the price reversal. With too long a lookback period, the indicator will
usually make a reversal too many bars after price has made a reversal.
The best settings are when price makes a reversal within 2-3 bars of the
indicator reversal at a counter trend high or low.
Choose different settings and note which setting most consistently makes
reversals that coincide with price reversals at counter trend highs and lows.
Settings are not the same for all markets or all time periods all of the time.

The settings may be changed if the momentum and volatility cycles change.
Indicators and Trend

Price does not necessarily reverse trend with momentum reversals. A
momentum reversal always represents a slowing down in the momentum of price
but price may not actually reverse the direction of the trend is the momentum
only slows down a modest amount.
Indicators are most useful to help identify if price is in a position to complete a
correction.
Indicators are not as useful to help identify potential price extremes in the
trend direction.
Indicators often stay in the OB zone for a bull trend or OS zone for a bear
trend for some time before an indicator or price reversal is made.
The best indicator settings to identify the end of a counter trend are not
necessarily the best to identify the end of the trend.
Since we want to trade in the direction of the trend, we choose the best
setting to help identify the end of the counter trend in order to enter the trade in
the direction of the trend.
Indicators and Practical Trade Strategies

Trades should be made in the direction of the price momentum.
The trend of the indicator will help identify which side of the market to trade.
The indicator will help to identify if a market is in a position to make a price
high or low.
A useful indicator is one that oscillates closely with price oscillations with few
“false” signals.
What ever indicator is used, it must have an objective reversal signal. You will
learn more about indicator reversal signals later in this chapter.
Most any indicator will be useful, as long as we are aware of how it acts and
reacts to price trends, momentum and reversals. The proper indicator settings
are important to accurately identify momentum and price reversals.





Module 4 – Indicator Bullish and Bearish Reversals
Indicator Bullish and Bearish Reversals Overview

Indicator bullish and bearish reversals signal a momentum reversal and are used
as part of objective trade entry, protective stop and trade exit strategies.
Bullish Reversal
Two line indicators (Stoc, RSI, DTosc) – when the fast line crosses above the
slow line .
An indicator bullish reversal represents a reversal to a relatively bullish
momentum compared to the recent relatively bearish momentum.
A bullish reversal may coincide with a price low or it may be a speed up in the
positive ROC of an existing bull trend.
Bearish Reversal
Two line indicators (Stoc, RSI, DTosc) – when the fast line crosses below the
slow line.
An indicator bearish reversal represents a reversal to a relatively bearish
momentum compared to the recent relatively bullish momentum.
A bearish reversal may coincide with a price low or it may be a speed up in the
negative ROC of an existing bear trend.
An indicator bullish or bearish reversal must be a completely objective signal.
Practical Trading and Indicators

Trades should be made in the direction of the price momentum. The trend of the
indicator will help identify which side of the market to trade.
The indicator will help to identify if a market is in a position to make a price
high or low. For most indicators, it the proper settings have been chosen, if the
indicator reaches the OB or OS zone, the upside or downside potential for price
should be relatively limited.
An indicator reversal will always represent a slowing down or speeding up of
the momentum. It will usually represent a price reversal is near.
A useful indicator is one that oscillates closely with price oscillations with few
“false” signals.
What ever indicator is used, it must have an objective reversal signal.

Trades are only considered in the direction of the indicator trend, unless the
indicator is in the OB or OS zone.
Bullish and bearish reversals are a key part of a trend reversal trade entry
strategy.
A trade is usually not entered in the trend direction until an indicator reversal
to the trend direction is made.
Bullish and bearish reversals are also used to adjust the stop-loss on an open
trade.
An indicator reversal against the trend direction may be a signal to adjust
stops very close to the market.
Later in this chapter, you will learn specific objective indicator trade strategies.



Module 5 – Indicators and Trend Reversals
Indicators and Trend Reversals Overview

Most trend reversals occur near a projected support/resistance or EOW price
target zone. However, there is usually more than one high probability S/R or
EOW zone. The indicator position will help identify if a market is likely to make a
reversal if it reaches a S/R or EOW.
A price reversal is probable:
If the indicator is in the OB or OS zone when price approaches a S/R or EOW
target, or
The indicator makes a reversal from any position after price reaches but does
not exceed the zone.
If the indicator is not in the OB or OS zone or has not made a reversal as
price approaches the S/R or EOW target, more than likely a price reversal will not
be made and the market will continue to the next S/R or EOW target.



Module 6 – Indicators and Trade Entry and Stop-Loss Strategies
Indicators and Trade Entry and Stop-Loss Strategies Overview

The indicator trade strategies are applicable to any market and any time frame.
Any trade strategy should consider the three main areas of technical analysis
that is taught in this course which include pattern, price and trend/momentum.
For this module, we are only going to consider the indicator position and not
the potential price or pattern positions which are also typically considered when
the trade is entered and the stop-loss is adjusted.
All entry strategies should be objective. Once the conditions are in place to
consider a trade, the entry price and initial stop-loss price should be completely
objective.
New Terms
A 1 Bar High (1BH) is the high price of the most recently completed bar.
A 1 Bar Low (1BL) is the low price of the most recently completed bar.
Trailing 1BH (L): As a new bar is made, the 1BH (L) may be different. We will
often adjust the entry or stop-loss to the trailing 1BH or 1BL.
Trend Reversal Indicator Entry Strategy
The indicator makes a bullish or bearish reversal.
Entry is made one tick above (below) the trailing 1BH (L).
Once the entry is elected, the initial stop is placed one tick above the high or low
made prior to entry.
Indicator Stop-Loss Adjustment Strategy
The stop-loss is trailed close to the market when the indicator makes a reversal
against the trade direction such as a bearish reversal in a bull trend.
One strategy is to trail the stop-loss one tick above/below the 1BH (L)
following the indicator reversal.
The next module will describe how to use multiple time frames with indicators
for this same strategy.




Module 6 – Indicators and Trade Entry and Stop-Loss Strategies
Indicators and Trade Entry and Stop-Loss Strategies Overview

The indicator trade strategies are applicable to any market and any time frame.
Any trade strategy should consider the three main areas of technical analysis
that is taught in this course which include pattern, price and trend/momentum.
For this module, we are only going to consider the indicator position and not
the potential price or pattern positions which are also typically considered when
the trade is entered and the stop-loss is adjusted.
All entry strategies should be objective. Once the conditions are in place to
consider a trade, the entry price and initial stop-loss price should be completely
objective.
New Terms
A 1 Bar High (1BH) is the high price of the most recently completed bar.
A 1 Bar Low (1BL) is the low price of the most recently completed bar.
Trailing 1BH (L): As a new bar is made, the 1BH (L) may be different. We will
often adjust the entry or stop-loss to the trailing 1BH or 1BL.
Trend Reversal Indicator Entry Strategy
The indicator makes a bullish or bearish reversal.
Entry is made one tick above (below) the trailing 1BH (L).
Once the entry is elected, the initial stop is placed one tick above the high or low
made prior to entry.
Indicator Stop-Loss Adjustment Strategy
The stop-loss is trailed close to the market when the indicator makes a reversal
against the trade direction such as a bearish reversal in a bull trend.
One strategy is to trail the stop-loss one tick above/below the 1BH (L)
following the indicator reversal.
The next module will describe how to use multiple time frames with indicators
for this same strategy.




Module 7 –Multiple Time Frame Indicator Strategies
Multiple Time Frames Indicator Strategies Overview

Two time frame trade strategies may be used with any market and any two time
frames.
The trend/momentum conditions for trade entry are identified on the larger
time frame. Trades are only taken in the direction of the larger time frame
indicator unless it is in the OB or OS zones.
If the larger time frame indicator is in the OB or OS zone, avoid initiating any
new trades. Price may be near the end of the trend.
Execute the trade on the smaller time frame indicator reversals.
Using two time frames for entry and exit strategies should result in a higher
percentage of profitable trades.

Chapter Five – Dynamic Trade Strategies

Module 2 – Swing Entry Strategy
Swing Entry Strategy Overview

Swing trade strategies may be used with any market and any time frame.
The swing entry trade strategy may be used for both trend continuation and
trend reversal trades.
It is a simple but logical entry and initial stop-loss strategy. Once the
conditions to enter the trade are identified, the entry price and initial stop-loss are
objective.
A key to this entry strategy is the market must be moving in the direction of
the desired trade before an entry will be elected.
A trade is entered when a swing high or low is exceeded in the direction of
the trend.
The initial stop-loss is placed just one tick beyond the swing high or low made
prior to trade entry.



Module 3 – Price Targets and Profit Objectives
Price Targets and Profit Objectives

A trader should be able to identify a min profit target before entering a trade to be
able to determine if the risk/reward is acceptable for a trade.
The initial stop-loss which limits the initial capital exposure (Risk) is
objectively defined at the trade entry.
The minimum profit target (Reward) is more subjective and depends on the
potential pattern position if one can be identified and potential S/R zones. There
are minimum guidelines to consider when making a minimum price objective.
The trader should be conservative in identifying the minimum potential profit
target in order to have a realistic idea of the risk/reward for any trade.
When there is no E-wave pattern to make an EOW price target, the min
objective is where an APP is near a retracement which creates a price S/R zone.
When there is an E-wave pattern when a min or typical EOW price can be
made, the min objective is the min or typical EOW price target zone.
Some EOW targets do not have both a min and typical EOW target.
Calculating The Minimum Profit Objective

The profit objective is the difference between the min price target and the trade
entry price.
The profit objective is the Reward.
The initial capital exposure (ICE) is the difference between the entry price and
the initial stop loss. The ICE is the Risk.
Trades should not be entered unless there is at least a 1:2 risk/reward.
The risk/reward ratio is calculated by dividing the initial capital exposure (risk)
by the min profit objective (reward).



Module 4 – Trailing Stop-Loss Adjustment
Trailing Stop-Loss Adjustment Concepts

There are two key concepts for stop-loss adjustment:
Concept 1
As a market trends, the stop-loss price is that price that the market should not
reach if the trend or counter trend is to continue.
Concept 2
If a market reaches a position for a trend reversal, the stop-loss is trailed close to
the current market position.
Maximum Stop-Loss
The maximum stop-loss price may be determined by the pattern, price or
indicator position.
Pattern Stop-Loss: Identify the pattern position and what pattern rule should not
be violated.
Price Stop-Loss: Identify the S/R and EOW targets which should not be
exceeded if the trend is to continue.
Indicator Stop-loss: Identify the higher time frame indicator position and the price
high or low that coincided with the last bullish or bearish reversal.
Stop-Loss Adjustment Targets

Pattern Target: Is the market in the final subdivision of a pattern? If so, the stop-
loss should be adjusted no further away than one tick above/below the high/low
of the last subdivision.
Price Target: Is the market near a major S/R or EOW price target? If so, the stop-
loss should be adjusted to no further than one tick below/above the last minor
swing high or low.
Indicator Reversal: Is the larger time frame indicator in the OB or OS zone? If so,
the stop-loss should be adjusted to no further than one tick below/above the low
or high that coincided with the last bullish or bearish reversal of the smaller time
frame indicator.

At least two of the three conditions should be in a position for a

support/resistance or a trend reversal before the stop-loss is brought close to the
market.
Adjusting the stop-loss is not completely objective as is the entry and initial
stop-loss placement.
The trader must make a decision if the conditions are in place for
support/resistance or trend reversal.
However, the trader should be consistent in the approach to stop-loss
adjustment even though it is not completely objective.



Module 5 – Multiple Unit Trade Strategies
Multiple Unit Trade Strategies Overview

A multiple unit trade strategy should increase net profits substantially over time.
A multiple unit trade strategy should be used for any market and any time
frame.
The main concept for a multiple unit trade strategy is to assume the market
will not do what you anticipate it to do so you look to exit a part of the position at
the initial S/R.
If a trend is anticipated, take profits on half the position at a counter trend
price target in the event you are not correct about a trend.
If a counter trend is anticipated, take profits on half the position at the min
price target for the counter trend in the event the market does not reach a typical
counter trend target.
By taking profits on half the position at the min objective, at least a small profit
is probable on the whole position if the trend does not develop as anticipated.
The market may only make a minor counter trend instead of a trend as
anticipated.
By taking profits on part of the position at the counter trend price objective, at
least a small profit is secured in the event the trend does not continue as
anticipated.
Exiting Part of A Position

If there is no E-wave pattern, the min price objective or first S/R zone is the target
to take profits on half the position.
Part of the position is exited at the min price objective. When the min price
objective is met, the stop on ½ of the position should be trailed at the 1BHorL.
The stop on the second part of the position is kept relatively far from the
market until the typical trend or counter trend target is reached.
The second part of the position is exited near the trend or counter trend
objective.
The trend objective may be a S/R zone or an EOW target or higher time
frame indicator reversal.
If the trend objective is reached, the stop on the second half of the position is
trailed close to the market.


Dynamic Trader Workshop – Trade Plan Strategies – Page 1
“If you fail to plan, you can plan to fail.”
Every successful trader has a written trade plan.
Most unsuccessful traders do not have a written trade plan. That is one reason
why they do not make consistent and logical trade decisions.
If you want to be a consistently successful trader, you will have a written trade
plan.
The trade plan does not have to include completely objective conditions before
any trade is taken or exited. In fact, a “mechanical” system which gives buy and
sell signals with no user input is a one way ticket to the poor house.
Trading is like every other business in the world. The trader must learn to make
decisions based on the information at hand.
The trade plan should describe the guidelines for the conditions that are
necessary before a trade is taken, the objective entry and initial stop strategy and
the guidelines for the exit strategy.
Below are two trade plans based on the Dynamic Trading approach. It should
keep you on the right side of the market momentum and prepare you for the best
trade conditions.

Trade Plan #1
With Exit Strategy at Minimum Price Target
Part 1 – Trend Reversal Conditions For Trade Setup
1. Trade in the direction of the larger time frame indicator unless it is in the
OB or OS zone.
a. OK to go short on smaller time frame indicator bearish reversals if the
higher time frame indicator is Bullish but OB.
b. OK to go long on smaller time frame indicator bullish reversals if the
higher time frame indicator is Bearish but OS.
2. Identify the probable pattern position.
a. Is the market making a trend or a correction?
b. What is the position of the market within the probable pattern?
3. Identify S/R or EOW price zones.
4. A trend reversal trade should be considered if at least two of the three
trend/momentum, pattern and price factors are in a position for a trend
reversal.
Part 2 – Objective Trade Entry

1. Trail a buy/sell stop one tick above/below the 1BH following a smaller time
2. Place the initial protective sell/buy stop no more than one tick below/above
the low/high made prior to entry.
Part 3 –Exit Strategy: ½ Position at Minimum Target
1. What is the minimum pattern anticipated to follow the trade entry?

a. If there is a clearly defined E-wave pattern, what specific pattern
should follow?
b. If there is no clearly defined E-wave pattern, should a trend or counter
trend pattern follow?
2. What is the minimum price target anticipated if correct about the trend and
pattern position of the market?
3. What is the typical price target that should be reached if incorrect about
the trend and pattern position of the market?
4. Trail the protective stop very close to the market on ½ of the position if the
min price target for 2.a is reached.

Part 4 – Exit Strategy: Second Half of the Position

1. If a clearly defined E-wave pattern develops, adjust the stop on the
second half of the position no further than a pattern reversal signal.
2. If no E-wave pattern, only trail the stop close to the market if the higher
time frame indicator reaches the OB or OS zone.
a. Adjust the stop no further than one tick below/above the high or low
made prior to a lower time frame reversal once the higher time frame
reaches the OB or OS zone.
b. If the higher time frame indicator is in the OB or OS zone and price is
at a S/R target, trail the stop one tick above/below the 1BH or L
following a smaller time frame indicator reversal.

Trade Plan #2
With Dual Time Frame Indicator Exit Strategy
Part 1 – Trade Entry Plan
5. Trade in the direction of the larger time frame indicator unless it is in the
OB or OS zone.
c. OK to go short on smaller time frame indicator bearish reversals if the

higher time frame indicator is Bullish but OB.
d. OK to go long on smaller time frame indicator bullish reversals if the

higher time frame indicator is Bearish but OS.
6. Identify the probable pattern position.
a. Is the market making a trend or a correction?
b. What is the position of the market within the probable pattern?
7. Identify S/R or EOW price zones.
8. A trend reversal trade should be considered if at least two of the three

trend/momentum, pattern and price factors are in a position for a trend
reversal.
Part 2 – Objective Trade Entry
3. Trail a buy/sell stop one tick above/below the 1BH following a smaller time
4. Place the initial protective sell/buy stop no more than one tick below/above
the low/high made prior to entry.

Part 3 – Indicator Exit Strategy
(Long trade example)
This exit strategy is completely objective.
It does not consider the potential price or pattern position.
It only considers the indicator position on two time frames to adjust the stop.
a. ½ Position: Trail the stop on the long position one tick below the 1BL
following the first indicator bearish reversal after trade entry.
b. ½ Position: As long as the higher time frame indicator is bullish but not in
the OB zone, adjust the stop on the second half of the long position to one
tick below the price low made prior to each smaller time frame indicator
bullish reversal.
c. If the higher time frame indicator makes a bearish reversal before

reaching the OB zone, trail the sell-stop on the long position one tick
below the 1BL following the next smaller time frame indicator bearish
reversal.
d. If the higher time frame indicator reaches the OB zone and the second
half of the position is not stopped out, trail the stop one tick below the 1BL
following a bearish reversal on the smaller time frame.

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End-of-Wave (EOW) Price Target Zone Summary Table – Page 1

Chapter Three – Dynamic Price Trade Strategies

End-of-Wave (EOW) Price Target Zone Summary Table

EOW Label EOW Price Projections

Continued on the next page.

Copyright 2005, Dynamic Traders Group, Inc., www.DynamicTraders.com

EOW 4 Primary Projections

Copyright 2005, Dynamic Traders Group, Inc., www.DynamicTraders.com

EOW Price Projections

Chapter Two – Elliott Wave Analysis

Trends and Counter Trends Overview

Simple three-wave or three Section ABC Counter Trend (correction)

Important of Identifying the Position of a Market Within A Trend or

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Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Chapter Two – Elliott Wave Analysis

Five Wave Trend Rules

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Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Chapter Two – Elliott Wave Analysis

Simple ABC Counter Trends

GUIDELINES FOR A SIMPLE ABC

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Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Chapter Two – Elliott Wave Analysis

Complex Counter Trends

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Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Chapter Two – Elliott Wave Analysis

Subdivisions of a Five Wave Trend

Subdivisions of a Three Wave Counter Trend

Subdivisions of a Complex Counter Trend

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Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Chapter Two – Elliott Wave Analysis

Five-Wave Trend Reversal Pattern Signal

Simple ABC Trend Reversal Pattern Signal

Pattern Reversal Signals Are Identified In Advance

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Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Chapter Two – Elliott Wave Analysis

Multiple Time Frame (MTF) with E-Wave Trend Reversals

MTF Pattern Reversal Signal For A Five Wave Trend

MTF Pattern Reversal Signal For a Wave-C

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Copyright 2005, Dynamic Traders Group, Inc. – www.DynamicTraders.com

Chapter Three – Dynamic Price Trade Strategies

Internal Retracements – Less Than 100%

External Retracements – Greater than 100%

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Internal Retracement Example – Less Than 100%

External Retracement Example – Greater Than 100%

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Chapter Three – Dynamic Price Trade Strategies

Alternate Price Projection Overview

Retracements are used to help identify the support or resistance of a counter-

APPs are an important price projection technique to help identify support or

APP Ratios used in the Dynamic Trading Method

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Alternate Price Projection Examples