Wave 3 Technical Trading

Wave 3 Technical Trading



Frank Bongiorno, founder and editor of Wave 3 Technical Analysis is based in Melbourne, Australia and has over 30 years of markets experience. This includes 2 year stint with Melbourne based funds manager S.G. Hiscock and Company; a 14 year period with Macquarie Bank, and a 5 year period with the Commonwealth Bank of Australia. Frank has been observing and writing about markets from an Elliott Wave perspective since 1985. The Wave 3 commentary utilizes and fine tunes what he has found to be useful and reliable over this period, discarding the many less reliable tools and techniques. He has applied Elliott Wave through numerous economic cycles and market conditions, encompassing market bubbles, scares, panics, crashes, wars and natural disasters; and of course for the most part, normal bull markets and bear markets. Frank was attracted to the Commodities Markets in the early 1980’s whilst completing an economics degree. Based in Melbourne, Australia, most of the action was at night (Melbourne time) on US Exchanges; and broker trading rooms were filled with traders during the evenings; trading markets such as Soybeans, Crude Oil, Gold, Silver, Currencies, and Stock Indexes. Many of these traders where fundamentally driven, although there were a significant number in that pre personal computer era with graph paper and set squares. This is the environment that provided Frank with an initial insight to technical analysis. After university he sought and gained employment as a Commodities Broker. This involved transacting client orders, providing advice to individual clients and running a small number of managed accounts. Whilst his Economics degree predisposed him to analyzing markets fundamentally, which he did pursue during those early years; it was technical analysis that yielded better results. Frank explored many forms of Technical Analysis prominent in the early 1980s, from traditional Edwards and Magee type analysis (which was then regarded as the bible of technical analysis), to Gann, timing techniques and automated trading. However, the predictive nature of Elliott Wave held the greatest appeal. Elliott Wave’s ability to at times (when the structure is clear) pick lowpoints and highpoints, allowing the trader to be pre-emtive rather than reactive placed Elliott Wave, as far as Mr Bongiorno was concerned at an advantage to other methodologies. Moreover, incorporating Fibonacci allowed for the projection of upside and downside potential in expected / forecast waves (at turning points), as well as support and resistance levels for corrections. This combination of factors held great appeal to Frank in those early years when we was still find his way. Frank began writing Elliot Wave based analysis for his clients and making Elliott Wave based trading recommendation early in his career. His analysis was formalized into regular published reports covering a small number of marker during his time with the Commonwelth Bank (1989-95). This was expanded to cover a broad range of markets during his 14 year period with Macquarie Bank (1995-2009), covering Stock Indices, Interest Rates, Currencies, Industrial Metals, Precious Metals Energy and some agricultural commodities. During this time he developed a large following, many of whom are subscribers today. In 2011 Frank founded Wave 3 Technical Analysis, a subscription based service. The aim of the Analysis and Commentary is assist readers to better interpret and understand market movements, by providing an insight to the markets from an Elliott Wave and technical dimension. The readership includes professional money managers, corporate treasurers, prices makers in financial instruments, proprietary traders and private individuals. The analysis covers a broad range of global markets, with a slight emphasis on the Australian markets. It is an excellent vehicle for traders who are not familiar with Australian markets to gain an insight. The markers regularly covered include (but not limited to) the S & P 500, the Australian ASX200, US Ten Year Notes, Australian Ten Year Bonds, the Australian Three Year Bonds, Australian 90 Day Bills, Euro/Usd, Usd/Yen, Aud/Usd, Copper, Oil and Gold. There are three updated per week: Monday, Wednseday and Friday. Eliott Wave is a methodology that allows for a high level of predictability at times when wave structure are fully or close to fully formed. This was the case in the S & P at the February low of 2016, which allowed Mr Bongiorno to issue a confident buy recommendation within one day of the low. And again a completed structure was identified at the June post brexit sell off low, which was also seen as a buying opportunity. When waves are not fully formed, or are in mid structure, there is often a lack of predicability with several alternative paths possible. The author seeks to discuss and canvas these possible alternatives during such times; and to issue clear and confident buy or sell recommendations when the wave structure is fully formed and readable. When market forces cause prices to move from point A to point B, what occurs is a shift in mass physchology, from pessimism to optimism, and vice versa. Elliot Wave says that this movement occurs in definable waves, with these waves often related in magnitude by Fibonacci relationships. That markets continue to on many occasions trace out readable Elliott wave patterns that are able to be interpreted leaves Mr Bongiorno convinced that in 2016, despite the many changes as markets have evolved over the decades, including money printing and the advent of high frequency trading; that through Elliott Wave, the author can assist readers to better understand market trends.

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