Introduction to

Wave Labels
Jody Samuels Juan Maldonado

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 Disclaimer

There is a high degree of risk involved in any type of trading. Foreign

Exchange trading is not suitable for all investors. Past results are not
indicative of future returns. FX Traders EDGE and all "affiliated"
individuals assume no responsibility for your trading and investment
results. Please keep in mind that all comments made by FX Traders
EDGE instructors should not be construed as investment advice
regarding the purchase or sale of Foreign Exchange.

Copyright, August 2012

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 Counting Waves

WEBINAR OUTLINE:

1. NOMENCLATURE COLOR CODES and LABELING

2. WAVE LABEL EXERCISE
3. TREND TOOLBOX AND END OF TREND DISCUSSION
4. WAVY TUNNEL SETUP

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 Nomenclature - ROYGBIV
Motive wave Correction
Wave Degree 5-wave Trend 3-wave color / font Timeframe

Cycle 12345 abc black 22 Quarterly

Primary 12345 ABC red 20 Monthly
Intermediate 12345 ABC yellow 20 Weekly
Minor 12345 ABC green 20 Daily
Minute 1 2 3 4 5 abc blue 18 4 Hour

Minuette 1 2 3 4 5 abc purple 18 and

Subminuette 1 2 3 4 5 abc white 18 1 Hour

Micro 12345 ABC red 16 15 Minute

Submicro 12345 ABC yellow 16 and

Miniscule 12345 ABC green 16 5 Minute

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 Nomenclature - ROYGBIV
Scheme to differentiate the degrees of waves in the wave progression
Motive waves:
UC Roman numerals
Standardized Corrections:
sequence of Lower case letters
labels
Motive waves:
involving: Arabic numerals
Corrections:
Numbers and Upper case letters
Letters
Motive waves:
LC Roman numerals
Arabic and Corrections:
Roman Lower case letters
numerals
Motive waves:
Arabic numerals
Easily Corrections:
memorized Upper case letters
repetition Frost, A.J. and Robert Prechter. Elliott Wave Principle (Georgia, New Classics Library, 2005).

UC = UPPER CASE LC = lower case

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 Wave Label Exercise
MONTHLY PRIMARY
red 20 pt
1

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 Wave Label Exercise
1
WEEKLY INTERMEDIATE
orange 20 pt

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 Wave Label Exercise
1
WEEKLY INTERMEDIATE 5
orange 20 pt B

3 A

C
4 2

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 Wave Label Exercise 1
5
B
DAILY MINOR
- green 20 pt A
3
C
2
4

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 Wave Label Exercise 1
5
5 B
2 C2
DAILY MINOR 3
1
4 A
- green 20 pt 4
3 B 1
5 4
3 A
5 1
3
B
5
3 2 C
A
C 2
4 4
1
5 1
3 B

1 A 2
4 C
2
2
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 Toolbox for Trends
Trend Confirmations
Support and Resistance:
Manual Barriers and 00 Prices
Pivot Points for Entries and Exits
Fibonacci Retracements for Entries
Channel Tops and Bottoms
Trend Indicators:
Moving Averages
Bollinger Bands
Continuation Chart Patterns:
Triangles, Flags and Rectangles
Candlestick Patterns
Internal 123s
Fibonacci Projections

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 End of Trend
Trend reversals occur at market tops and
bottoms after a sideways move

Trending Market:
-Higher pivot highs
and higher pivot lows
-Lower pivot highs
and lower pivot lows

Low taken out and trend continues down

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 Wavy Tunnel Chart Setup
Wave EMA Upper Middle Lower Awesome
Parameters Oscillator
EMA Period 34 34 34 SMA
On High Close Low 5
Color Purple Purple Purple 34
Thickness Medium Medium Medium 5

Tunnel EMA Fast Slow Filter (CAO)

Parameters
EMA Period 144 169 12 MACD
On Close Close Close histogram
Color Black/White Black/White Green
Thickness Medium Medium Medium

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 Wavy Tunnel Chart Setup

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 Wavy Tunnel Chart Setup
SUMMARY FIVE TRADES:

THREE Trend Following Trades: TWO End of Trend Trades:

BO-1: Break Out PW: Price to Wave
BO-2: Break Out FG: Fill the Gap
BO-3: Break Out

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