WHY FW WAS AND IS A GENIUS……. ES, NQ and YM Voodoo Bounce or Something Else?

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  • December 21, 2013

Why The Technical’s Are Only There To Support And Confirm What You Are Seeing Regarding The Price Pattern.

I shall always remember the first time I met David Elliot. I had recently purchased his AET home study program. I had a question to ask him as I was confused by all that he taught.  We met at the hotel he was staying at with his lovely wife Allison in London. We left the hotel and sat in an Italian restaurant eating some great food.

Here is how some of the conversation went.

Patrick: Ok, you teach a lot of stuff ….. but how does all this fit together?

FW: What do you mean?

Patrick: Well …. you have MAP, MOBO, Soap, Hockey Sticks, Zoom, STAMPs, 3 waves and that’s just a few….. how does someone use all this?

FW: Simple. You don’t use all of it.

Patrick: What??????????????

FW: I teach it all to show the various technical’s you could use. You use the one(s) you like to support the MAP patterns you are seeing on several time frames.

Patrick: Are you saying I could just use MOBO or Snap Back if I wanted to, and ignore everything else? Are you saying I just look at the MAP pattern and get confirmation off the few technical’s I like …… and that’s it?

FW: YES! lol…..

Patrick: Rigghhhttttttttttttttttttttttttttt!!!!!!!!! Why didn’t you say that before?

FW: I did. It’s the first thing I teach. I think most people misunderstood this point and got hypnotised by all the possible indicators they could use. The technical’s I invented are there to support the principals and are not the main principal. The main principal is the various MAP patterns around the SMA’s and the 3 waves. Wave 1,2 and 3. Its just the price moving in 3 waves towards and away from the major moving averages. That is all there is to it. lol

Patrick: This dish is lovely but yours looks better. hhmmmmmmmm. Why is it every time I order a meal I wish I had what someone else is eating?

FW. lol

Yesterday one of my 1-2-1 clients was short the indexes and wasn’t sure were to get out. We looked at one of my favourite intraday time frames, the 4hr chart and saw the price approaching the 500 sma. We got out a few tick in front of it.

What did the price do?

Exactly what FW would teach. The price is most likely to bounce off the 1st test of a major SMA if it has not seen it for a while. “It needs to go and get some roses and chocolates and come back before asking for a date” as FW the genius used to say.

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The purple line on each chart is the 500 sma. What do you see?

Remember, the technical’s are not it. It’s the price patterns FIRST. The technical’s are only there to support and confirm what you are seeing regarding the price pattern.

7 Comments

  • dennis says:

    Finally, I now see what I have been doing wrong, I wanted the studies MAP, MOBO, Soap, MOBO, Hockey Sticks, 3 waves and etc. to give me the answer. The studies were not going to give me the answer, they were their to conformation my decisions. My mind set had to change.
    It is now easier to trade when I let the study or studies confirm my decisions.
    Thanks Patrick

    • admin says:

      well done. If this message changes the financial events of 1 persons trading account it has achieved my mission. I know one person will affect another and thus the ripple affect will occur.

  • mic says:

    FW’s MAP patterns work very well along with my personal favourite confirmation indicator MOBO off the 50ma. I also like to use Snapbacks and MMG hockey sticks for early entry situations.

  • robert schmidt says:

    I am making this more complicated than it should be

  • Edward Breslin says:

    Patrick, Thank You for sharing this insight with all of us.

  • mike v says:

    Thanks Patrick v clear

  • Sandra says:

    Hi Patrick, Thanks a lot for your the important info on FW’s thinking
    Vary valuable. Sandra