Foreign conversations it seems like very very specifically, you are a fan and tracking Elliott wave but also how that ties in with Fibonacci levels which the Fibonacci thing is kind of striking me. Now once again, it seems like very related to the fact that you're tied to music and there's certain I guess mathematical patterns that are available within life that obviously we see in a music we see. those are Fibonacci numbers. So to me that seems like a natural connection and I guess also knowing what Elliott wave is a connection there.

So for the audience who doesn't know, could you explain what Elliott wave and Fibonacci is and then on top of that, how you use that in your day trading? Sure, the most important thing that I could tell you right off the bat is that Elliott Wave does not take into consideration or track economic or fundamental changes. So I can't say it's like, well, you know, I'm looking for a really large move up and G that must be they're going to cut interest rates or anything like that. Couldn't begin to tell you what. Elliott wave does measure and it is trackable and it is charitable.

Our human emotional responses to all of those things right to. You know everybody's going to get bullish. Why? Because what? We're going to cut interest rates? Well, that might be the reason, but what? you're What's your emotional response. excitement Push in bye right? But when fear takes over, what's the response sell and that's measurable, That's measurable and so.

But also, when you're adding Fibonacci there's the Fibonacci number sequence and that was actually Leonardo de Fibonacci Right Was alive in the 12th century. That's when he came up with this number sequence and then it was RN Elliott Who took that number sequence and took the combinations of Ellie of Fibonacci right where we have 0.382 0.5 0.618 These are retracements or levels that we can add to a chart and we use. but that's just combining Fibonacci numbers. But those relationships are found in nature.

So Elliott then designed and came up with. it's like, well, there's the law of nature just because it is. This is the way it is, and our bodies are constructed by that law. We have five fingers.

What do we have in each finger? three joints. So Fibonacci numbers three and five. You know it's the extensions of our body. the space between our nose and where our eyes are.

They're normally 0.382 from your face and how your face is constructed. We're a Fibonacci number. We have five senses gotcha. so you're gonna find it again and again.

and again. And the pattern repeats again and again and again. That's the other thing to remember. The pattern repeats.

Look at a snowflake. It repeats. a piece of broccoli. It repeats that flour.

It's nothing more than a series of fives and threes, but that's how you can break it down. Now, we all, whether we want to admit it or not, have to follow the law of nature. And the law of Nature dictates a lot of things that people say nah, not going to happen. It's like yeah, well it just is gonna happen Now How I got into doing that is because I was fascinated by there was a system called the Elliott wave principle that you actually could track a move day to day.

And then of course because we can break it down I can do it minute by minute and they're just a series of building blocks. They're repetitive. So once you can understand that that a complete move is an Impulse which is going to be five waves labeled one, two, three, four five followed by a corrective move which is going to be three. Whether that's up or down, you know it depends on the trend, but that's the pattern and it repeats and it repeats.

And it built. So you can start with your biggest picture, a multi-multi maximum monthly like I have one in the Dow that I have data back to 19 03 I Believe it is gotcha. so a lot of data. it's the same pattern.

So as I'm doing my Elliott work and I'm saying well this is what we just completed. For example, in January of 2022, the The Markets basically completed a super cycle wave three. That super cycle Wave 3 took 90 years to unfold. That's how big it is now I got to condense all that and bring it all the way back down.

It's like, well, what's that going to tell me about today? Um, possible to do simply because the patterns repeat. If we're in a correction, the same patterns at the bigger number is going to do. you're going to see it in all of them. all the way down to the smallest day intraday.

the same patterns repeat. You recognize those patterns. You're going to get a pretty steady idea of what comes next. Interesting.

So you're basically looking at the 535 generic setup, but on the largest time frames all the way down to it sounds like even the one minute and you're more so like it sounds like. and please correct me if I'm wrong. You like to know where we are in the general picture, but as a day trader, I'm assuming your active trades are based a little bit more on like that smaller time frame setup. the smaller time frame and actually the larger Elliott I'll do it later.

Focus is I do price action. but the the actual formations continue to happen over and over and over again. So yes. now.

having said that, there's one basic when either we either are in an impulsive move or a corrective move, there's one impulse structure. It's five waves labeled one, two, three, four, five. That's it. Corrections This is the bane of my existence.

There are 13 different possibilities that a market can do and a combination thereof within those. When putting in a correction. we have been in a B Wave Corrective Counter Trend Rally since October of 2022.. Okay, we're working on nine months going on.

A year that we will have been in this corrective Rally counter Trend Rally and it has thrown every single curveball you could think of. Um, oh, are we done? Nope. We're extending. Oh, is that done? Nope.

It's moving into a a different triangle. It's in the this is that pattern, so it tends to kind of create a situation where people who don't understand Elliott think it's it's bogus, but it actually is one of the most useful tools that we can get. Once you understand, it's like, well, there are 13 different possibilities. How do you want to trade that if you're a big picture? Trader Well, you're going to have to build a position that's going to go for that bigger move.

That's fascinating to think that almost a year, nine months. So if we extrapolate far enough out in time, you think this corrective wave to the upside will actually be coming to a conclusion. And then we revert back downward because the move from October until the point that we're filming this in the mid-summer of 23s. obviously it's been pretty bullish.

Like I mean some of those magnificent Magnificent Seven socks that you're referring to have been absolutely ripping to the high heaven. So if this is a corrective wave in Elliott wave theory, you're thinking that like it's kind of hard To call the exact time. but you think the correction ends and we actually keep coming back down? Yes, that it would be. That would be a a good statement now.

even I'll even narrow that down a little bit more for you. I think we're very, very close to the turn. Interesting, but that's not. But I don't want people to get the wrong idea if you got to get your big.

My big picture is it's like yes, we're in a longer term corrective phase, but nothing goes straight down or straight up exactly. So when we're doing degrees, what we're going to do, we're coming down in likely a primary C wave that primary C wave when it hits its low, which in the S P might be around 3000 which is not the end of the world. We were there several times. We've been in the 3000s several times, even within this counter.

Trend rally. Yeah, so it's but people just they can't think, oh, that can't happen. It's like yeah, it can and then likely will happen. I'm not going to tell you how, but I can give you a lot of examples.

But basically we come down. we're finishing a cycle degree a wave. What comes next? another counter Trend rally, but on a bigger degree. Sure, it's going to be bigger.

So when I'm saying that, yes, we're going to decline. But when we're done, we're going to Rally like there's no tomorrow. Now with Elliott wave. Is it more I guess.

Is it more accurate to say Does it ever measure the timing or the magnitude? or is it more so just saying Like we don't know the time? We don't know the magnitude, but you're looking for these particular Peaks and valleys. Um, the magnitude? You definitely can. If you have an understanding of the degrees of Opera that are in operation, then you can get your magnitude. Adding Fibonacci to all of that gives you depth or height gotcha because there are specific Fibonacci relationships that go along with each particular section that you may be in and those have been developed over the years as well.

So yeah, you can. you can put some Solid Ground What seems to be a problem is getting people understand. It's like you can't pin the market to anything. The market will do what the market is going to do when we have to think about that.

There are thousands, thousands of Traders moving in and on the market at any given time for a bunch of different reasons. and now we're all quantitative. It's not like me standing with a pencil and a piece of paper and figuring this out in the crowd. It's all computerized.

My brain as quick as I think it is, is in no way going to be competitive with an algorithm. Yeah, that is working is functioning. There's the trade trades done before my eyes even saw it.