Lit lin Wave sueesfly means wig it simply. Mark Schimmel designed this ‘workshop to provide you with the basic tools needed for a solid understanding of basic Elliott Wave structures: the 5-wave (impulse) pattern and the 3-wave (corrective) pattern. Specifically, Mark believes that you can successfully trade using Elliott Wave analysis by following only three basic rules accompanied by a handful of guidelines. Each Elliott Wave structure defines the trend and the market's next likely move. With 4 solid understanding of these simple rules and guidelines, you will gain confidence in counting a chart, which can result in a better understanding of the item’s price potential Along with the basics, Mark will share several trading approaches to the Elliott Wave sequence. These include deriving likely targets for the next move, assessing risk/reward parameters, and using the Wave Principle to minimize risk. eee ‘Mark A. Schimmel isa senior market analyst with Elliott Wave International (EWD, the world’s premiere Elliott Wave organization, He provides real-time commentary on dozens of global equity, bond, currency and commodity markets for professional and pri- vate investors around the world. Mark teaches EW1’s comprehensive tutorial on the Elliort Wave Principle and conducts seminars and workshops to retail and institutional investors worldwide. He has served as the editor of The Fliott Wave Theorst Short-Term Update, an adjunct service offered to subscribers of Robert Prechter's Eliott Wave TBeorist newsletter. Mark also provides EWI subscribers with live telephone market opinions on all world markets and presents daily and intraday commentary on worldwide markets for EWP institutional Outlook services. Copyright SCHIMMEL 1998. All Ri gr] LAS VEGAS 1998 Keep It Simple Stupid Trading with the Elliott Wave Principle Mark A. SCHIMMEL ‘MARK A. SCHIMMEL, Elliott Wave International 200 Main St, Hunt Tower Gainesville, GA 30501 770-534-6680 X3003 O 770-531-6681 FAX mschimmel@elliottwave.comVoonoeFive Wave Move: Normal Five Wave Move Three Wave Move: A-B-C 3Market Move Employing these waves. Techniques: Counting and trading. 41 Motive Corrective (Numbered) (Lettered)previous 4th wave spanMotive Corrective (Numbered) (Lettered) Phase 4, PhaseIdealized Elliott Wave Progression FINAL ADVANCE: State of Euphoria Market performance and fundamentals improve, but not to levels of wave 3. Psychology creates overvaluation. POWERFUL WAVE Strength. Breadth. Best fundamentals. Increasing real prosperity. By the end, the underlying trend is considered up. Wave often subdivides. Is never the shortest wave. REBOUND from undervalued levels Recognition of survival SURPRISING DISAPPOINTMENT Signals that best part of growth phase has ended. Does not enter price territory of wave 1. TEST OF LOWS Fundamental conditions often as bad as or worse than those at the previous bottom. Underlying trend considered down. Does not carry to new low. BOTTOM: Marked by Extreme Pessimism Large degrees: question of existence, survival; depression; war. Intermediate degrees: recession; “panic”; limited wars. Minor degrees: often accompanied by "bad news.” 9500 7 DOW JONES I INDUSTRIAL Kl | fl AVERAGE hy | i i" | hy 507 | 1929 1935More America than ever[fit ain’t a1250 September 0; §&P500 ( Daily / 1150 ih i f Ni) i 1050 i no | 900 Ne Ay s Hr | ‘ i 850 8797 10997 121/97 1998 = 32798 —$/2698 7122/98 141250 1150 SMT September ©) S&P 500 Daily 3 vl | hy 1 f * 10397 124/97 12098 = 3279852698 —_7122/98 151200 it s 1180 1170 1160 1150 1140 1130 1120 1110 1100 s 1090 1080 September S&P 500 Daily | | | (© July 1998 Eliott Wave Intornational ata Couriesy of CG™ 5298 © 6/898 «GIH7I98 6/26/98 »=— 71898 = 7N7I98 (7128/98 16a 6) September 5 i; §&P500 Daly 3 ff 1150 pang Te / f{ 4 60 1 fi 4 io | af Ni | y Att @ © W hay i 20 1 iy 2 w0 $50 (4) Sete ese g7g7 10997 -—« tag? = 12098 = 3127198 — 512608712298 1971998" (Oct 97|Nov [Dec |Jan [Feb |Mar |Apr_ [May _|Jun Jul Weaday. Geptenber 14, 1998 O5i6RH (Wer! 3.459.0 20® Ni | S & P 500 15 MINUTE = | | = ‘© August 1998 Eliot Wave International ‘Data Courtesy of CAG™ {§-@£-+——_+_+—_+— 1208 21S&P500 * 15 MINUTE (© August 1998 Etitt Wave International Data Courtesy of COS™ Cc EEE IEEE Ta88 24= Es = B i 5 Five up? i \ iy | S&P500 | 15 MINUTE © August 1998 El national e ata counesy ot OS™ iiEXPANDED FLAT: The pattern consists of a three-three-five affair. The first wave (wave a) is a smaller degree three wave move (a-b- c). The second wave is also a smaller degree three-wave move (wave b). This wave could also take the shape of a triangle by itself. The third wave (wave c) is a five-wave move (impulse wave). We are most concerned with this wave, in terms of trading. Trading Technique: Expanded Flat: A. Once wave c completes a five-wave move, move long or short (depending on the situation). In this case, we would move short. B. Place a protective stop exactly one tick above wave fives peak as prices begin to pullback. This peak is now key resistance for a bearish move. If prices take out the top of wave five, even by one tick, the probability is that the pattern is not an expanded flat. That does not mean that prices could not still fall. It simply says the count is probably something else. 27I i | 8 TATA THTR8 TONGS TRIG T12088 x me 08 tH B® 28 S&P 500 15 MINUTE 1208 Eton Wave irternatonl uresy of CaG™a S & P 500 15 MINUTE i (i) ana SB © August 1888 Eliot Way rt itesyof COS™ mR = Ny BS (| : if THT3 TANS T1883 ym we Hw mH TAB T2088 TBS 29 = s{aly i | N fy \ . i | (i)} | \ a ‘180 = {16 1) S&P500 15 MINUTE ‘© August 1998 Eliott Wave International Data Courtesy of CaG™ | \ H r j I, \ | i | Vv fy} lll) ? 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A498 aITMG BNE. a9s 40"1200 S & P 500 15 MINUTE . 1110.01@D) — ommasorasige ware senate 11000 a 1090.0 1080.0 1070.0 10600 + @ b 1050.0 Poy 87198 810198 8/11/98 81998 814/98 8/1898 8119/88 821/98 8/2498 8/26/08 aFlat Any Three 42 Zigeal Y .September | S & P 500 | Cash | mest Me if tt tH td TOS 1208 N88 HOSB TSR HHS 43ia Mig (ii) 1100 o Mn, Ay Pay | | 1050 ® 1000 S & P 500 950 HOURLY © Serta cousy of CO 3? 900 ++ t + t t t TATIQS. 712898 712998 8/4/98 8/11/98 817/98 8/21/98 8/28/98 9/38 9998 44tao ‘itd =] tp 098 dah ag10800 S &P500 rio} HOURL Y Vw $90.0 -—_>—_t—¥_+—_+ ++ 788 811968 B/A83 92598 S188 988 911488 S188 47HOURLY 119004 108007 B98 1988 1988 90598 SMB 9888 TARE 98 49 [ S&P500 7 | $30:-—_—_—_+M&_9200 9100 } 9000 8900 8800 MINOR WAVE 5 DJIA Hourly Bar (arithmetic scale) 4 © April 1998 Elliott Wave International 8700 + 3/30/98 4/2/98 4/7/98 50 4/14/98 4/17/98 4/23/989200 3 S s ° 3 S SoS&P 500 1130.0 ) B HOURLY jh, A Sorsatteczar hy, war x? fH t | | © too} { A 10900 + 90.0 C 930.0 + + +—__+—_—+ {+ 198 9/2398 «10/1798 52i , Ls 1212.10 December tt hy 1122 “o & P 500 | 1 i . i | 107880 ‘tent ft | I 1070.00 i, i i ) \ Wl a <— 946.50 \ Second zig = .618 times 1st at 915.36 \ i \ Second zig = 1st at 813.90 wilt ya Trg T3098 «ANTN® ARIA S0OH STA Leer 54Five Wave Moves: Normal Five Wave Move 1. Wave two can not take out the origin of wave one. 2. Wave three can never be the shortest. 3. Wave four can not move into the prices territory of wave one. 55Three Wave Moves: A-B-C These waves and patterns are usually completely retraced. See: “The Basiscs of the Elliott Wave Principle” 56 Pages 23-29Market Move: & Techniques: Counting and trading. 57a ‘a ag Elliott Wave International Conference Spectal The Short Term Update $3Q% 6 Weeks for the price of 4! Get These Gifts FREE: > The Theorist November & December Issues nk w> Book Of Your Choice: 1- Elliott Wave Principle - 20th Anniversary Edition —OR— - 2- At the Crest of the Tidal Wave: A Forecast for the Oreat Bear Markst —OR-— 3- Prechter’s Perspective A al Save 767 0G" ee cstmavecom surf it In the U.S. please call 1-800-336-1618 Outside of the U.S., please call 770-536-0309 58