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Todd Gordon

Middle East Traders Expo. Todd Gordon. Senior Technical Strategist FX trader, Gain Capital Asset Management Author, Strategy of the Day Regular contributor to CNBC’s Fast Money Popular Twitter contributor FOREX.com booth # 6314.

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Todd Gordon

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  1. Middle East Traders Expo Todd Gordon • Senior Technical Strategist • FX trader, Gain Capital Asset Management • Author, Strategy of the Day • Regular contributor to CNBC’s Fast Money • Popular Twitter contributor • FOREX.com booth # 6314 Forex trading involves significant risk of loss and is not suitable for all investors.

  2. What We Will Cover • Part 1 – Introduction and services we provide • Part 2 – The 3 dimensions of trading • Part 3 – Pulling it all together

  3. Part 1 Introduction

  4. Buying Breakouts

  5. Buying Breakouts

  6. Buying Breakouts

  7. Buying Breakouts

  8. Buying Breakouts

  9. Trading and Ski Racing?

  10. Strategy Of The Day ** **The following are my actual trades as recommended through SOTD. The following are successful examples, though unsuccessful trades can and will occur. Due to timing, S.O.T.D. recommendations and actual executions will vary slightly. Additionally, the spreads inherent in my performance are generally at more favorable rates than that available to the typical retail investor. As such, you may not be able to achieve similar results as illustrated in this presentation.**

  11. Strategy Of The DayDecember 2009

  12. Strategy Of The DayJanuary 2010

  13. Strategy Of The DayFebruary 2010

  14. Twitter 5213 followers • www.twitter.com/ToddGordonForex • General market commentary • Trading, position, SOTD updates • Occasional attempts at humor 989 followers • www.twitter.com/ToddGordonTrade • Trading, position, SOTD updates • Ideal for SMS text alerts

  15. Part 2 The 3 Dimensions of Trading

  16. 3 Dimensions of Trading 1) Intermarket analysis

  17. Identifying Currency Leadership EUR / USD USD / JPY

  18. Identifying Currency Leadership EUR / USD USD / JPY

  19. Identifying Currency Leadership EUR / JPY

  20. EUR/JPY USD/JPY EUR/USD Which Currency To Trade?

  21. Indentifying Leadership

  22. Inter-Market Analysis “Market trends anticipate economic trends.” -John Murphy

  23. AUD/JPY & Dow Overlay

  24. USD/JPY & US 10-yr Yield

  25. EUR/USD NOW Trades With Equities

  26. USD/CAD & Crude Oil

  27. AUD/USD & High Grade Copper

  28. XAU & EUR/JPY

  29. 3 Dimensions of Trading 2) Identifying trading opportunities

  30. ELLIOTT WAVE A Disciplined Approach To Pattern Recognition and Risk Management *Paul Tudor Jones ..calls Prechter and Frost's standard text on Elliott "a classic," and one of "the four Bibles of the business" -- “...and The Elliott Wave Theorist both give very specific and systematic ways to approach developing great reward/risk ratios for entering into a business contract with the marketplace, which is what every trade should be if properly and thoughtfully executed."[19] * http://en.wikipedia.org/wiki/Paul_Tudor_Jones Forex trading carries a high level of risk and is not suitable for all investors.

  31. Ralph Nelson Elliott (1871 - 1934) Forex trading carries a high level of risk and is not suitable for all investors.

  32. BASIC 5-WAVE PATTERN 5 3 Wave 5 Wave 4 Wave 3 1 4 Wave 2 Wave 1 2 Forex trading involves significant risk of loss and is not suitable for all investors. Forex trading carries a high level of risk and is not suitable for all investors.

  33. BASIC 5-WAVE PATTERN • Wave 3 • - Strong, deliberate, and extended price action • Fundamentals increasingly better • - Investor confidence greatly improved • 5 extended subdivisions 5 • Wave 5 • - Investors extremely optimistic • Fundamentals return, but often not to W.3 levels • Price momentum less than W.3 • Wave 1 • - Fundamentals poor • - Investors fully, bearish • expecting new lows • Heavy short selling • 5 wave subdivision • Wave 4 • Fundamentals temporarily peak, then pullback • Often shallow, yet prolonged consolidation 3 Wave 5 Wave 4 Wave 3 1 4 • Wave 2 • Investors fully bearish, certain of new lows • - Heavily retraces W.1 • - Fundamentals horrible, doom and gloom • Volumes light, as sellers dry up • 3 wave subdivision Wave 2 Wave 1 2 Forex trading involves significant risk of loss and is not suitable for all investors.

  34. TREND WAVES MOTIVE WAVES • Subdivides into waves of 5 • W.2 can’t go below the beginning of W.1 • W.4 always retraces less than 100% of W.3 • W.4 can’t go below the beginning of W.3 • W.3 is often the longest, never the shortest. 5 .v .iii 3 .v .iv .b .i .iii .ii .a .iv 1 .c .v .i 4 .b .iii .ii .i .a .iv .c 2 .ii

  35. BASIC 5-WAVE PATTERN 2 Forex trading involves significant risk of loss and is not suitable for all investors. Forex trading carries a high level of risk and is not suitable for all investors.

  36. WHICH COUNT IS VALID? Forex trading carries a high level of risk and is not suitable for all investors.

  37. WHICH COUNT IS VALID? Forex trading carries a high level of risk and is not suitable for all investors.

  38. Similar Structure At All Degrees Of Trend 1 .5 .3 5 5 3 B 3 1 4 2 4 A 1 .1 C 5 .4 B 3 3 Degrees Of Trend Largest: Middle: Smallest 1 2 4 A 1 C 2 .5 .2 5 Forex trading carries a high level of risk and is not suitable for all investors.

  39. Similar Structure At All Degrees Of Trend 1 .5 .3 5 5 3 B 3 1 4 2 4 A 1 .1 C 5 .4 B 3 3 Degrees Of Trend Largest: Middle: Smallest 1 2 4 A 1 C 2 .5 .2 5 Forex trading carries a high level of risk and is not suitable for all investors.

  40. Similar Structure At All Degrees Of Trend 1 .5 .3 5 5 3 B 3 1 4 2 4 A 1 .1 C 5 .4 B 3 3 Degrees Of Trend Largest: Middle: Smallest 1 2 4 A 1 C 2 .5 .2 5 Forex trading carries a high level of risk and is not suitable for all investors.

  41. Similar Structure At All Degrees Of Trend 1 .5 .3 5 5 3 B 3 1 4 2 4 A 1 .1 C 5 .4 B 3 3 Degrees Of Trend Largest: Middle: Smallest 1 2 4 A 1 C 2 .5 .2 5 Forex trading carries a high level of risk and is not suitable for all investors.

  42. Corrective- possesses a 3-wave structure that retraces percentage of a prior motive Waves 2,4 and B are corrective Subdivision are labelled with letters. Waves are corrective when trending in the opposite direction to the wave of 1 larger degree. Corrective Waves Forex trading carries a high level of risk and is not suitable for all investors.

  43. CORRECTIVE WAVES .5 .3 .B C A B .1 .4 .A B .C A C .2 Uptrend Downtrend Forex trading carries a high level of risk and is not suitable for all investors.

  44. Wave A B Wave B Wave C A C COMPLETE 8-WAVE CYCLE 5 3 Wave 5 Wave 4 1 4 Wave 3 Wave 2 Wave 1 2 Forex trading carries a high level of risk and is not suitable for all investors.

  45. Wave B Head fakes. Bullish investors from Wave A are confirmed, just before nasty reversal below Wave A origins Wave C Wave A Wave C Highly discouraging, very little bullishness, stops below wave B origin triggered, capitulation Wave A Public extremely bullish, convinced pullback presents an easy buying opportunity Wave B COMPLETE 8-WAVE CYCLE 5 B 3 Wave 5 Wave 4 1 4 Wave 3 A C Wave 2 Wave 1 2 Forex trading carries a high level of risk and is not suitable for all investors.

  46. Completed A-B-C Correction Forex trading carries a high level of risk and is not suitable for all investors.

  47. LABELING WAVES Time Frame Font Size Forex trading carries a high level of risk and is not suitable for all investors.

  48. Forex trading carries a high level of risk and is not suitable for all investors.

  49. Fibonacci Ratio Analysis The map legend of Elliott Wave Principle…

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