Post 1 EWU Observations from a New Student

December 2, 2013


I’m emailing you personally because I really believe that you have a desire for all of your students to be successful. There is no need to respond.

I’m 60 years old and have had a love for the markets all of my life, but never was able to have the discipline to be consistently profitable.

I have been through the Elliott Wave and Fibonacci Primer Modules but my focus has really been on the Wavy Tunnel Module. I have been through the module three times and have actually typed a complete transcript of every word spoken so that I can go back and confirm information without having to search through the videos and I intend to keep reviewing the Modules again and again. (I may not be your best student, but I’m probably your most determined!)

I even have each trade setup on index cards which I have used as flash cards and I know the setups cold. But, here’s what’s interesting…

Last night I used my trial version of Motive Wave to find an instrument that had the Gold Bungee Strand above the 50% mark on the weekly, daily and 4-hour. It also had the CAO above zero on all three time frames and there were clear 123 Patterns in the direction of the trend on all three. (I’ll add the Royal Semaphore as a fourth confirmation when I get access to it.) So, I am confident that I am in a trend.

I wrote up a full trade plan complete with Money Management, Stop Loss, Entry, Exit and Trailing Stop rules.

Then I used the Replay Mode in Motive Wave to trade the 15-minute bars for the shortened holiday week. I totally blew it. I kept getting completely off my trade plan and found myself trading from the hip!!!)

Interestingly, once the trading week was over, when I went back and reviewed my trades I could absolutely see where I went wrong (trading against the 15-min Gold Bungee Strand, for instance) and realized that on my most successful trade I did not realize it at the time but I was actually trading a BO-4, perfectly. (By that time I didn’t know what the heck I was doing, I was just looking for a good Bungee StretchAway and a candle pattern to get in.)

I wound up actually making a profit on my first simulation which is probably both bad and good, as I don’t want to reinforce bad behavior.

The takeaway is that I understand the setups and the use of the Filter, Wave, Tunnel and Bungee intellectually, but I have not trained my brain to apply all of that knowledge simultaneously in a cohesive fashion. It is a word of warning to anyone who thinks they “know” the material but doesn’t realize that they don’t “feel” the material.

I just thought you would be interested in how the learning process is working in real time.

By the way, I juggle clubs. Learning to trade in this fashion is a lot like learning to juggle. You have to show up and practice, you can’t control your improvement you can only show up and practice and know that the byproduct is improvement.

-dave tillery

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