short at 346

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This is a presentation of the ABC Plus Waves and the COMBO Plus Waves. These Plus waves are the latest version, released on April 28, 2011. Even though older versions of the waves are still valid, these newer Plus waves were designed for a higher rate of accuracy.

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This is a presentation of the ABC Plus Waves and the COMBO Plus Waves. These Plus waves are the latest version, released on April 28, 2011. Even though older versions of the waves are still valid, these newer Plus waves were designed for a higher rate of accuracy. - PowerPoint PPT Presentation

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Page 1: Short at 346

This is a presentation of the ABC Plus Waves and the COMBO Plus Waves.

These Plus waves are the latest version, released on April 28, 2011. Even though older versions of the

waves are still valid, these newer Plus waves were designed for a higher rate

of accuracy.

Page 2: Short at 346

The following charts represent trading opportunities for both the swing trader and the day trader. After using the ABC Plus

waves and Combo Plus waves for a while, you will start to recognize the patterns presented here. These charts will be

updated periodically, so check back from time to time. I hope these new waves become a useful tool. The Wave Guy, August 19, 2011

Page 3: Short at 346

This is a 21min chart of AAPL. At arrow 1, the B wave goes below 0 (note the price). The C wave confirms the move to the downside at arrow 2. As long as the C wave stays below 0, you can stay in the trade. The exit point is arrow 3, when the C wave crosses above 0. This is a 3 week move with a 30+pt profit to the

downside.

Short at 346

Cover at 315

Page 4: Short at 346

These 2 charts are both AAPL. And both Combo Plus waves. The top chart is 21min, and the bottom chart is 55min. The heavy yellow vertical lines indicate a snapshot in time. In other words the entire top chart is

only the small right portion of the bottom right chart. There are 2 major opportunities on the bottom 55min chart which are longer plays. During the same time span, there are more plays using the top chart

of 21 min.

Page 5: Short at 346

This ABC Plus wave chart of GS 21min shows a major entry point to the upside when the B wave crosses above 0. In this example, your exit point will be the shorter A wave crossing

below 0. Note the right arrow.

Page 6: Short at 346

This is an example of using the Combo Plus wave as a confirmation of a move. I placed the Combo wave on top of the ABC waves for comparison. The entry point is arrow 1, which is on the A wave. It’s a short signal. The confirmation is the

Combo wave inside the oval. The trade is complete at arrow 2 on A wave. This is a classic “cover your short and go long signal.” The buy signal is also arrow 2, and the Combo inside the oval confirms the move.

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1

2

2

Combo Plus

A

B

C

ES 21min cash

Page 7: Short at 346

This chart is an example of knowing when the trade is a Trend trade or Counter trend trade. The Blue wave on the top Combo graph shows that BIDU is a long play. However, within that time span, the smaller White wave moves above and below 0. When the smaller wave (White) moves COUNTER to the larger wave (Blue), you have the option of playing the

counter trend move. It’s also playable on the B wave, but the Combo gives you greater perspective.

Page 8: Short at 346

This is a chart of GS 21min. For a period of 10 days GS kept bumping up against resistance. While GS is making up it’s mind which direction to go, the trade is the shorter A wave. Each arrow represents a 1-2

day trade. And each Orange wave crossover gives you a 1-2 bar early warning. That gives you 25-30 min. to get into the trade.

Page 9: Short at 346

These are side by side 144min vs. 55min charts of BIDU. All of the right chart fits up to the arrow of the left chart. The key here is to fine tune the long entry. If, on the 144min (left) there is an indication of a reversal, the smaller time frame 55min will give you a cleaner entry. Notice on the right chart that the

White wave peaks up, backs down, and then pushes thru. This is a classic wave entry.

Page 10: Short at 346

This is the 1st of 2 NFLX 55min charts. Using the B wave, a short is established at arrow #1. At arrow #2, you cover and go long. At arrow #3, you cover and go short. This

snapshot was taken just as you see it on 7/12/2011.

2

2

1

1

3

3

Page 11: Short at 346

This is the 2nd NFLX 55min chart. It is a continuation in time from the last chart. Notice that the “cover and go short” signal at #3 followed through with a 70pt sell off into #4.

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3

4

4

Page 12: Short at 346

This chart is AMZN 144min. Using the Combo Plus wave above, or in this case also the B wave (arrows not shown), there are trades at arrows #1, #2, and #3. Even though the longer Combo wave stays well

above 0, this is a 144min chart, so all the shorter White wave moves can be played. On the other hand, if you only play the long side, then you would stay out of the trade between arrow #2 and arrow #3, when

the White wave is below 0 (counter trend).

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23

Page 13: Short at 346

This is a follow up from the previous chart AMZN 144min. Notice how the A wave was giving a sell signal (right side previous slide). If you had followed the A wave instead of the Combo Plus, you would have

missed the end of the run from 211 to 229. The Combo gave a nice sell signal at arrow #4 for a maximum 25pt gain (or option play).

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4

Page 14: Short at 346

This chart is SLV 21min. This Short rides the waves from A to B to C. Enter at the A wave arrow. Let the B wave confirm the move, and then let the C wave confirm. The exit starts at arrow #1 on the A wave and all

out at arrow #2 on the B wave.

Short

A wave

B wave

C wave

1

2

Page 15: Short at 346

This chart of AAPL 21min was captured 8/6/2011. B wave at arrow #1 gives a Buy signal. B&C waves at arrow #2 give a Sell signal, and the C wave at arrow #3 confirms the down move. Over the next 2 trading

days, AAPL fell another 22pts.

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1

2

2

3

3

Page 16: Short at 346

And finally, for all you day traders, this is an ES 1597tick chart. This wild day on Aug 10 th to 11th 2011, showed 4 major trades. 2 Shorts and 2 Longs. They all play off the B wave. Usually you have to wait patiently for setups like this. But on this day and the previous 2 days, these were common. Volatile

markets bring great trading opportunities.

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B wave