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CMT Level 1

Burton and Shah, CMT1 Summary

 

Burton, Edwin T and Shah, Sunit N.: Behavioral Finance, Understanding the Social, Cognitive, and Economic Debates, John Wiley & Sons, Inc., c. 2013, ISBN: 978-1-118-30019-0

Chapters: 1-4, 7

 

 

 

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Part One: Introduction to Behavioral Finance
Chapter 1: What Is the Efficient Market Hypothesis?
Chapter 2: The EMH and the “Market Model”
Chapter 3: The Forerunners to Behavioral Finance

Part Two: Noise Traders
Chapter 4: Noise Traders and the Law of One Price
Chapter 7: Noise Traders as Technical Traders


 

Gorman and Kennedy, CMT1 Appendix A

Appendix A: Introduction to the Wave Principle

  • Intro
  • The Basic Pattern
  • Motive Waves
    • Impulse
      • 3 Rules
        • Wave 2 never moves beyond the start of wave 1 (2 retraces less than 100% of 1).
        • Wave 3 is never the shortest motive subwave, but it does not have to be the longest.
        • Wave 4 never enters the price territory of wave 1
      • See Picture of correct and incorrect counting based on these rules
    • Extension
    • Truncation
    • Diagonal
  • Corrective Waves
    • Zigzag
    • Flat
      • Regular Flat
      • Expanded Flat
      • Running Flat
    • Triangle
      • Contracting (upper line declining, lower line rising)
      • Barrier (outer line flat, inner line sloping with larger trend)
      • Expanding (upper line rising, lower line declining)
      • Running Triangle
      • Post-Triangle Thrust Measurement
    • Combination
  • Fibonacci Relationships
    • Intro
      • Double Three Combination
    • Retracements
    • Multiples
    • Dividers
    • Clusters
  • For More Information

Gorman and Kennedy, CMT1 Chapter 1

Chapter 1: The Anatomy of Elliott Wave Trading

  • Intro
  • How the Wave Principle Improves Trading
    • How the Wave Principle Improves Upon Traditional Technical Studies
    • Five Ways the Wave Principle Improves Trading
      • Identifying the Trend
      • Identifying the Countertrend
      • Determining the Maturity of a Trend
      • Providing Price Targets
      • Providing Specific Points of Invalidation
  • The Four Best Waves to Trade
    • 3, 5, A, and C are the most advantageous to trade
      • because they are oriented in the direction of the one larger trend.
    • Five-waves moves determine the direction of the larger trend
    • Three-wave moves offer traders an opportunity to join the trend.
  • Elliot Wave Trade Setups
  • When to Trade Corrections
  • Guidelines for Trading Specific Elliott Wave Patterns
    • Impulse Waves
    • Ending Diagonal
    • Zigzag
    • Flat
    • Triangle
  • The Neglected Essentials– Risk Management and the Psychology of Trading
    • Intro
    • Risk-Reward Ratio
    • Trade Size
  • The Psychology of Trading

Gorman and Kennedy, CMT1 Summary

Gorman, Wayne and Kennedy, Jeffrey: Visual Guide to Elliot Wave Trading, John Wiley & Sons, Inc., c. 2013, ISBN: 978-1-118-44560-0
Chapters: 1, Appendix A

Click chapter titles to see details.

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PART 1: Trade Setups
Chapter 1: The Anatomy of Elliott Wave Trading
Appendix A: Introduction to the Wave Principle, by Wayne Gorman

Elder, CMT1 Chapter 31

Part 5: Volume and Time
Chapter 31: Open Interest

Elder, CMT1 Chapter 30

Part 5: Volume and Time
Chapter 30: Force Index

Elder, CMT1 Chapter 29

Part 5: Volume and Time
Chapter 29: Volume-Based Indicators

Elder, CMT1 Chapter 28

Part 5: Volume and Time
Chapter 28: Volume

Elder, CMT1 Chapter 27

Part 4: Computerized Technical Analysis

Chapter 27: Relative Strength Index

Elder, CMT1 Chapter 26

Part 4: Computerized Technical Analysis

Chapter 26: Stochastic