Chapter 15Analysis Toolbox—Your First Mentoring Session

There are certain skills that a trader needs, which I call the building blocks for building strategies and trade plans. These building blocks support the skills required to read the charts like a story book. Each chart tells a story about what part of the market cycle we are in and once we understand how to read the various market cycles, we will be better apt to trade what the chart is telling us.

The major building blocks are found in the Analysis Toolbox in Table 15.1.

Table 15.1 Analysis Toolbox

Analysis Toolbox
Trending vs. Sideways Markets Market Cycles (Elliott Wave Analysis)
Support and Resistance:Manual Barriers and 00 PricesPivot PointsAverage True RangeFibonacci RetracementsTrend Lines and Channels Reversal Chart Patterns:Reversal Candlestick PatternsDouble Tops and BottomsHead and ShouldersRising and Falling Wedge123 Reversal
Trend Indicators:Moving AveragesBollinger Bands Oscillators:MACD and Awesome OscillatorRSI and Stochastics
Continuation Chart Patterns:Triangles, Flags, and RectanglesInternal 123s Fibonacci Projections:Trend ContinuationTrend Targets

The tools in the toolbox help traders to stick with their positions during trend moves, to know when the end of the trend is near, and to understand which indicators to use during trend and sideways markets. By understanding a basic approach to the market cycles through Elliott Wave analysis, a trader will be more skillful at navigating the ...

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