Well, this is the second interview with Rikei Trader Yoshiki.
Everyone, how did you find the first interview?
ShodoRide
Detection of the Dow Theory trend reversal point “final retracement high”
Calculation of the Elliott Wave “1,2,3‥ wave”
Yoshiki confidently faced the interview saying that these two logics were enough.
Here, we will introduce Dow Theory and Elliott Wave.
-Dow Theory- (From Wiki)
A theory proposed by Charles Dow for evaluating price movements in the market.
• The averages discount all events
• There are three kinds of trends
• Primary trends consist of three phases
• Must be confirmed by volume
• Multiple signals must confirm each other
• Trends continue until a clear reversal signal occurs
This theory, which especially incorporates the occurrence of average-like events, states that there are three kinds of trends and that trends consist of three phases, a part widely recognized by many investors and widely used from Dow’s proposals in the 18th century to today.
For those with a keen sense you may already have noticed,
Dow Theory states that“Trends continue until a clear reversal signal occurs”,
and many may think, “That’s obvious,” or “If you knew where the reversal would occur, you wouldn’t be struggling.”
Within Dow Theory“Higher highs and higher lows” is a key idea.
A trend is born by raising the most recent highs or lowering the lows.
If neither higher highs nor higher lows occur, the trend reverses or becomes a range.
This idea is perhaps the most famous aspect.
Profit is taken when the trend stops making higher highs and higher lows.
Even so, Yoshiki adds a different essence to that portion.
By adding Elliott Wave, the signal accuracy is dramatically improved.
-Elliott Wave Theory- (From Wiki)
A theory proposed by Ralph Nelson Elliott in 1938.
The market cycles in five rising waves and three falling waves as a basic pattern.
These cycles are driven by crowd psychology and, because similar waves appear on different time frames, it is widely used in various market analyses.
Elliott Wave Theory applies Fibonacci sequences to the highs and lows of the formed waves to see how far prices may retrace, a view held by many.
One theory alone cannot cover all aspects, and combining them dramatically raises accuracy; this is what consolidates these two theories into
the initial alert “Shodo ride”
A diagram that I have made to clearly present, in my own terms, where the signals appear, as taught by Yoshiki.
While calculating Elliott Wave, signals are formed by combining with Dow Theory’s higher highs/lows and trend reversals.
What an amazing tool has appeared!!
Discretionary traders, this is an essential item!! this is an essential item!!
Stories of the path to developing Shodo ride, past struggles, and moments Yoshiki considers failures—an interview!!
Yoshiki once, long ago
Trading relying on indicators
Making and discarding tools repeatedly
was his practice.
He used various indicators but couldn’t create the tool he envisioned.
Among them, he wondered if waveform recognition might be important, and moved to trading with candlesticks and waveform recognition only, without indicators.
That said, there is no convenient tale that waveform recognition goes perfectly from the start.
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Time and mindset were the bottleneck |
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The idea of waveform recognition is good, and he was convinced it is correct, but the time required for trading, monitoring time, and the mental strain after holding positions, among other issues, made it hard to succeed.
Waveform recognition is important, but he couldn’t adhere to the rules within it.
Here is the turning point!
This is the retracement high!!
This is the pullback low!!!
Even if you know these, trading that doesn’t follow the rules—such as premature profit-taking, over-positioning, or poor stop losses—won’t lead to victory.
Yoshiki’s experiences and struggles through this are
led to the [With Simple Orders] Fixed-Loss Type
Lot Auto-Calculation Indicator for MT4 & 5 [EasyOrder]
which ultimately led to its development.
Yoshiki’s trading, in the end, came to fruition by endlessly watching charts.
He recognized the importance of waveform recognition, so the rest was to study case by case.
Using Forex Tester, he reportedly watched charts for as long as ten years.
A moment when life dramatically changed!!
During the interview, Yoshiki spoke of
the Room of Spirit and Time
and that by watching ten years of records in Forex Tester, he could perform ten years' worth of case studies and waveform recognition.
That may be why he arrived at a trading method that seems to have the experience of ten to several decades in a short time.
What he learned most in waveform recognition were
Dow Theory
Granville’s Laws
Elliott Wave Theory
Although the previous section only described Dow Theory and Elliott Wave Theory, Granville’s Laws
is a theory by American analyst Joseph E. Granville, used to analyze market direction from moving averages and divergence.
Its form closely resembles Dow Theory and Elliott Wave Theory, and is well recognized in waveform analysis.
If you thoroughly learn its three laws, you will be able to win.
In the interview he noted that Granville’s Laws are a bit “vague,” so in Shodo ride, he seems to be using Dow Theory and Elliott Wave Theory.
Of course, by incorporating Granville’s Laws—its concept and eight rules—into Shodo ride, accuracy will improve and discretion will become more enjoyable, so if you’re reading this email, please give it a try!!
Please also study Granville’s Laws!
Free bonus gift!
※ Viewing Bonus ※
Grasp the Trend Direction at a Glance! 【Trend Wacher】
as a gift
Please obtain it with the password at the end of the first video.
If you obtained the free bonus indicator, be sure to
Trend Reversal
Initial Move Alert “Shodo ride”
※When you purchase the MT4 version, MT5 is also included
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