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Track 'n Trade Bulls 'n Bears Trading System
Using Fibonacci, Elliott Wave, and Gann Tools
Video Transcript
A lot of people ask, 'Now that we have the Bulls 'n Bears, Trading System, do I believe it's necessary for traders to learn such things as Fibonacci Retracements, Projection Levels, Elliott Wave theories, and Advanced Recurring Price Patterns?' The answer to this question is a very simple and without hesitation, YES. I do believe you should still continue to further your trading education pursued, into these different areas of technical analysis.
The reason I believe this is still important, is because if you have a fundamental knowledge of Elliott Wave Fibonacci projections, and retracements, you'll not only have a better insight of where markets are, in relationship to their past price levels and where they have high degree of probability to be in the near future. You'll also have a better understanding of the core workings and functionality of the Bulls 'n Bears System, itself. Also, why it makes the color changes that it does.
Even though you will most likely continue to use the Bulls 'n Bears as your primary staging ground for market entry and exit. Having this additional knowledge, can, to a large degree, bring an added level of confidence and success to your trading. Simply by allowing you to make projections for the purpose of calculating Risk vs. Reward Ratios. Also, relationships between different market segments.
In this Bulls 'n Bears Trading video, I want to discuss some advanced market strategies, regarding how the Bulls 'n Bears interacts with the Fibonacci, and Elliott Wave theories.
Of course, this video is not meant to be a complete discovery of all the great and wonderful features of Fibonacci and Elliott Wave. In depth features are covered within my other trading course materials. This video assumes that you are already somewhat familiar with Fibonacci and Elliott Wave theory. As we talk about how the Bulls 'n Bears quantifies, verifies, and interacts directly with Fibonacci and Elliott Wave retracements.
The first step is to briefly review Elliott Wave. Elliott Waves are nothing more than recurring Price Patterns, just like 123 top formations, or narrow sideways channels. Elliott Wave Patterns are a series of market advancements, and retracements, which can be counted and measured. 5 waves forward with 3 wave retracements.
The logic goes, that markets move in waves. Basically, 2 steps forward and 1 step back. Then two steps forward, once again. This is the basis of Elliott's theory.
Fibonacci on the other hand, is simply a mathematical retracement and projection calculation. We use Fibonacci to measure the Elliott Wave retracements and to project out into the future an approximation of where and when the next Elliott Wave advancement is going to be.
Using these two tools, in combination with each other, makes a very powerful forward looking market projection strategy. Used very successfully by many traders. But when you add the Bulls 'n Bears red light, green light market trend indication tool, to this already very powerful combination. You then get what looks like a 3-D view of the Elliott Wave and Fibonacci patterns that you've been receiving. The Bulls 'n Bears can actually help to confirm your other Elliott Wave and Fibonacci thought processes.
Here's how it works: Elliott moves through wave, two steps forward, one step back. Two steps forward and one step back, again; and so on..
The Bulls 'n Bears also counts and measures these moves within it's hyperbolically linked mathematical formulas. As the Elliott Wave pattern advances, the Bulls 'n Bears changes the Price Bar colors to green. As the market pulls-back against the overall trend, the Bulls 'n Bears changes the color to yellow. The pull-back against the trend is when we begin to measure the retracement within our Fibonacci ruler. In an attempt to measure how far back we anticipate the trend to retrace. If the retracement breaks too far back, beyond the Bulls 'n Bears calculated Fibonacci retracement level- the Price Bars will change over to red. In an indication that the market has retraced too far back to be considered a viable Fibonacci pullback or retracement. It is now considered to be a new downtrend.
In a perfect world, we would see an advancing market move through the steps of the Elliott Wave with green Price Bars. Then yellow Price Bars reflected through each gentle pullback, as the market approaches the maximum Fibonacci retracement levels. When the market begins to advance forward, once again, the Bulls 'n Bears would confirm the positive rise in price by turning the Price Bars back to green.
This pattern of color change would continue up and through the Elliott Wave pattern. At which point, would turn red. But only after reaching the top of our Elliott Wave reversal formation. Of course, if we were working with a Bearish market, this entire scenario would be turned upside down. Rather than green Price Bars, we would be experiencing an Elliott Wave red Price Bar decline.