Introduction

 
If you’re like me and the millions of other people who have
attempted trading using Price Action, you have looked at the
patterns and repetitions on your charts and thought “There must
be a science to this. If I just knew the right thing to look for, I
could predict what may happen next.”

In this free training, you will see that when we say “Hidden
Elements” we are not talking about the individual analysis
components. The components we will discuss are actually widely
popular. However, it is the science of pulling the “predictable”
elements together to create a winning strategy that is hidden
from almost every trader out there.

We call that science Market Geometry which is just a fancy way

of saying that we measure and forecast based on the predictable
aspects of Price Action trading.

**Remember: The majority of market moves are not patterns, but

patterns do exist within the chaos if you know what to look for. If
you focus on the predictable aspects of the market and ignore
the chaos, you can approach the market in a scientific, profitable
manner.
 

Before you get started...

 
Please remember that this free report will only scratch the
surface of what you’ll need to know to master market structure. 
Yes, we think it is extremely to understand these elements, but
you’ll still need to work hard to develop your strategy and the
rest of your knowledge around these components.

If you want the shortcut to really master this stuff, I have put my
life’s work into a true curriculum that, if you go through, you will
with 100% certainly have every tool and resource you need to
become a successful trader.

I don’t feel even the slightest bit concerned about highly

recommending your investment in this course because I know it
will be the best investment you’ve ever made. 

I’m so confident that my course works (heck, otherwise I’d be

broke since this is the only strategy I trade) that I back it up with
a unique and borderline crazy guarantee.

So, if you want the full emersion in becoming a successful trader,

please get my Exponential Profits System Course today and I will
be inside the member’s area to guarantee it works for you.
 

Element 1: Waves
 
It’s not a new practice to use waves to analyze or forecast
markets. However, understanding the real balance of these
waves and how to apply the other elements to these waves is
what will give you a significant advantage over other traders.
When you understand how the waves work, where you are within
a given cycle and how to forecast multiple future price
possibilities, that’s when you will be in a position to make
winning trades which is what this eBook is all about.

With most things in trading, it is easier to learn by visualizing the

concepts, so let’s take a look at two examples of the wave
patterns you’ll want to recognize.

Uptrend Pattern:
 

Downtrend Pattern:
 
The structure of a trending market is evident in both these
pictures. 

The basic market structure of an uptrend tells us that while price

is moving up it will make a series of Higher Highs (HH) and as the
market briefly pulls back downwards, a series of Higher Lows
(HL) before continuing the uptrend.

Inversely, a downtrend will make a series of Lower Lows (LL) and

as it briefly corrects upwards a series of Higher Lows (HL) before
resuming the trend downwards.
What R.N. Elliot used to define market structure with was to ad
labelling to these trends and corrections i.e numbers and letters
and further noted that Elliott used numbers to label the main
trend i.e. 1 -5 and letters A-B-C to mark out corrections. 

My use of the Elliott Wave Principle is to define trend and identify

corrections within the confines of market geometry. 

Let’s take a look at a detailed example:

 

The image above depicts the nature of wave structure within a

trend. 
If you look at the overall trend, it is clearly up and I used labelling
to define the evolution of the trend with numbers 1 – 5 in black. 

These are your primary wave counts and they in turn subdivide
into smaller waves as follows:
 
Wave 1: 5 waves up (marked in grey)

Wave 2: A - b- c (marked in red) and making a higher low and not
going lower than the start of wave 1. 

Wave 3: Again 5 waves up but this time the magnitude of wave 3

is much larger than wave 1. 

Wave 4: A repeat of wave 2’s structure and again in an a - b - c

format. 

Wave 5: Another 5 smaller waves up, typically preceding the high

of wave 3.
 
Trends tend to tell a story that can help us in our overall
analysis. They are also repetitive in nature. 

To be able to “read” a trend we need a way to “measure” a trend

and identify our position within such a trend in order to make
better trading decisions.

 
Wave 1: Typically the shortest of all the waves and we would
generally not know that it is a wave 1 until we have a corrective
wave that follows that does not break the starting point of wave
1. 

Wave 2: Is a Corrective Wave that tends to move in an

overlapping fashion (corrective waves will be studied in detail
later) and does not go lower than the origin of wave 1 before
moving up again. Creating a higher low in this example.

Wave 3: Is what we call an Impulse Wave as this waves

magnitude is always larger than wave 1. The impulse wave also
tend to have a steeper angle of ascent than wave 1.

**If you look closely at the 5 wave structures, even the smaller
sub structures, you will notice that wave 3 is always the longest.
This is a very important characteristic to take note of.

Wave 4: Another Corrective Wave and this wave should never

retrace lower than the high of wave 1. If wave 4 were to go lower
than the high of wave 1 it will provide us with a sign that the
previous wave structure was in fact not a trend but probably
some sort of correction instead!

Wave 5: Will generally break the high of wave 3 in another 5

smaller waves and is generally the same measured length than
wave 1 was. It is during this wave that we need to be cautious of
a possible change in trend direction. In a lot of cases wave 5 will
not move in an impulsive manner and have a flatter angle of
ascent compared to wave 3.
 
Knowing where you are within a trend is one of the most
powerful tools for a trader and understanding the geometry of
market waves is critical to being able to do just that.

Element 2: Implementing Pitchforks

 
The pitchfork (image below) is used to determine market
direction and structure almost as if we’re “mapping” the possible
path of price in the future. Which, of course, helps us make
winning trades.
 

A pitchfork is typically drawn using 3 major pivots on a chart

(marked A –B –C) and projected forward in time. The first pivot is
the starting point of his pitchfork and is named the Median Line
(ML). 

The second and third pivots are used to determine the final angle
or slope of his pitchfork, always parallel to the ML and were
named the Upper Median Line (UML) and Lower Median Line
(LML). The Median Line dissects pivot B and C in the middle or
50% between B and C.

Most charting software has the Andrews Pitchfork as a standard

drawing tool and by simply selecting the starting pivot first and
then selecting two additional pivots after, the drawing tool will
automatically draw itself at the right angle forward in time.
Making it very easy to use.

By using the Wave element and knowing where we are within the
trend, we know which direction is a more profitable opportunity
for us to trade and the potential for price movement.

Now, by adding the Pitchfork to the appropriate pivot based on

our wave forecast, we can hone in on fabulous trade
possibilities.

Element 3: Fibonacci
 
One of the most widely used technical tools in trading are
Fibonacci Ratios. 
These ratios were discovered by a thirteenth century
mathematician named Leonardo Fibonacci. Traders commonly
use these ratios to identify possible areas of support or
resistance. 

There is a wealth of knowledge to be found about Fibonacci

ratios by doing a quick internet search; however, all you need to
know about them for our current purposes are the very basics.
 
Fibonacci Retracements:
 
A Fibonacci retracement can be drawn when connecting two
extreme points on a chart, usually a previous high to a most
recent low in a downward trending market or a previous low with
a most recent high in an upward trending market. 

I also use them to measure specific characteristics that

corrections and waves tend to display.

The ratios we recommend using for trade decisions are as

follows:

38.2%
50.0%
61.8%
78.6%

Below these retracement ratios are displayed as vertical lines on

a downward trending market.
 
To draw a retracement I selected two swing points, in the
example above I used an important high, from which price moved
strongly down from (Point A) and connected it to a most recent
swing low (Point B) where price moved up a fair way, creating a
retracement. 
If we are of the opinion that price will continue lower at some
stage without taking out the high at point A, we would expect our
Fibonacci ratios to act us resistance. 

In this example price respected the 50 % level briefly but shortly

after touched the exact 61.8% ratio and reversed strongly down.

This is the power of Fibonacci Ratios and why so many traders

use them!
 
Fibonacci Extensions:
 
We will be using another Fibonacci trading tool called Fibonacci
Extensions in our technical analysis. Fibonacci Extensions are a
way of projecting these ratios forward in time to find possible
areas of support or resistance in the future. 

Price tend to react to these extensions when they eventually

reach them and they make good targets to trade towards when
entering a position. We will also use them to measure corrections
and identifying wave characteristics.

The ratios we recommend using for trade decisions are as

follows:

100.0%
127.2%
138.2%
161.8%
200.0% 
Below these extension ratios are displayed as vertical lines on an
upward trending market.
 
To draw an extension I selected three swing points, in the
example above I used an important low, from which price moved
up from (Point A) and connected it to a most recent swing high
(Point B). 

Price then made a higher low (Point C) and then moved upward
again breaking the high of Point B. To draw extensions we need a
higher low first followed by the break of a previous high before
we draw our extensions.

If we are of the opinion that price will continue higher, we would

expect our Fibonacci ratios to act us resistance. 

In this example price respected the 100%, 161.8%, and 200%

levels. 

It should now become evident that Fibonacci ratios are very

important technical analysis tools that can help us measuring
market structure.

So you can see by combining these elements together we have

built an incredibly scientific and predictable approach to trading
price action.

Rather than looking for a special candlestick pattern (which is

like trading based on flipping a coin) we are
trading within market structure by scientifically analyzing market
components to tell us the 4 most important things any trader can
know:
 
1. What is the trend doing?
2. Where are we within the trend cycle right now?
3. Where are viable entry points to get in during the next trend
move?
4. Where are viable exit points to take my profit once it’s
achieved?
 
When you know those 4 pieces of information, you are far ahead
of the average trader and by studying market geometry and
applying your own strategy to what you’ve learned in this free
eBook, we are confident you will see vast improvement.

Yes, I’ve only had time to barely scratch the surface of

understanding market structure and how to trade within it.
 

Learn My Complete Methodology...

 
If you would like to learn my complete methodology for
understanding market structure and how to trade within it, plus
my own exact entry methods for finding the highest profitability
trades that most traders completely miss, I highly recommend
my Exponential Profits System Course.

It’s a complete education on how to master market structure and

take control of your trading.

Tap Here to Check it Out

 
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