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RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT
Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor
an offer to Buy/Sell any financial market.
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Hypothetical performance results have many inherent limitations, some of which are mentioned below. No
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In fact, there are frequently sharp differences between hypothetical performance results and actual results
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For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the
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related to the market in general or to the implementation of any specific trading program, which cannot be fully
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acceptance of such Terms and Conditions and policies as appear on the site.
Nicola Delic Double Helix System
www.elliottwavedna.com 3
Welcome to
The Double Helix System
In this special report you will learn how to trade another one of my most
powerful trading systems.
This is a system that I developed and traded on a wide variety of
accounts and it has proven to be a genuinely profitable trading system
capable of delivering spectacular returns.
It uses 2 EMAs and 2 RSI indicators, to get very reliable confirmations for
entries.
This system is easy to use and implement, so it will be suitable for both
beginners and experts in Forex trading since it’s very reliable and most
importantly, consistent.
It can be used on any currency pair or timeframe and as long as you
follow the rules, you should gain profits.
Nicola Delic Double Helix System
www.elliottwavedna.com 4
System Components
The Double Helix system uses just two indicators that every platform
already has pre-installed. The first indicator is the Relative Strength Index
(RSI), and the second is the Moving Averages indicator (MA).
What is RSI?
The Relative Strength Index (RSI) is a popular momentum oscillator
developed by J. Welles Wilder, Jr. which he describes in his book New
Concepts in Technical Trading Systems.
RSI is one of the most popular technical indicators among traders, since it
can help to determine overbought and oversold price levels as well as
generate buy and sell signals.
The indicator does this by comparing the price action over a certain period
of time – usually 14 periods – that enables the indicator to show if the
price became unusually high or low.
Therefore, it can be used to determine when the trend might start
reversing.
Using the RSI
The RSI is useful for traders looking to time their entries and exits from
the markets, so they can maximize profits ahead of a rise or fall in price.
The RSI is a versatile tool, it can be used to:
Generate buy and sell signals
Show overbought and oversold conditions
Confirm price movement
Warn of potential price reversals through divergence
Nicola Delic Double Helix System
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Using the 30 and 70 levels to see overbought and
oversold conditions
When the RSI line begins to approach the 30 level, it is likely that the
downtrend is ending. When the RSI line begins to approach the 70 level,
it is likely that the uptrend is ending.
It is only when the RSI begins to approach the 30 or 70 level that traders
really pay attention. This marks the points where the asset is becoming
overbought or oversold.
When the line is above 70, an uptrend is likely to come to an end.
This is shown on the chart below:
Nicola Delic Double Helix System
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When the line is below 30, a downtrend is likely to come to an end.
This is shown on the chart below:
Please bear in mind that the RSI alone is usually not enough to determine
the trend reversal. It indicates a potential reversal. However it’s best to
pair it with another indicator or strategy for confirmation. That’s where for
instance, divergence comes into play.
Nicola Delic Double Helix System
www.elliottwavedna.com 7
Double RSI for double precision
Although RSI is a fantastic indicator by itself, I’ve discovered that pairing
two of them together produces much more reliable results.
We will be using the following settings:
1st RSI: 7 Periods
2nd RSI: 13 periods
Important:
To get a valid signal, BOTH RSI indicators must show divergence.
How to apply RSI onto your chart:
1. From the menu: Go to Insert -> Indicators -> Oscillators ->
Relative Strength Index.
2. From the Navigator window (if it’s not open, go to View ->
Navigator Window or press CRTL + N), expand the Indicators
section and either double-click on RSI or click and drag it onto your
chart.
Once you’ve applied the indicator onto your chart, you will be prompted
with the Properties window. For the first instance of RSI enter 7 for the
RSI Period parameter and for the second instance of RSI enter 13 for the
RSI Period parameter.
Nicola Delic Double Helix System
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RSI 7 Parameters:
RSI 13 Parameters:
Nicola Delic Double Helix System
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Divergence
Divergence is simply a disagreement between price and indicator
movements.
On the chart below we can see that GBP/USD shows a high and a higher
high, and on the RSI we have a high and a lower high. This is a basic
example of divergence that suggests a potential push lower soon.
Nicola Delic Double Helix System
www.elliottwavedna.com 10
On the AUD/CAD chart image below we see a good example of divergence
that appears in a bearish trend. While price moves down and forms a low
and a lower low, the RSI formed a low and higher low.
Nicola Delic Double Helix System
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Moving Averages
Moving Averages smooth the collected price data from a given instrument
and form a line on the chart. Traders call the MA a trend-following
indicator. The most important thing to understand is that MA really does
not predict the future price direction. The MA’s main purpose is to define
the current trend direction with a little bit of a lag. Of course this lag is
more than normal because we are using data from history and plotting it
on the chart.
The two most popular versions of the MA indicators are the EMA
(Exponential Moving Average) and the SMA (Simple Moving Average).
You can see below what the SMA and EMA would look like on a chart/
In our system we will use 2 EMAs, the first one will be an EMA 13 and the
second an EMA 21.
On the chart above we can see the 13 EMA as a green line and the 21
EMA as an orange line. We watch for when these two EMAs cross each
other (marked with the 5 squares on the chart at places where such a
crossover occurred). Further on in this report you’ll get to understand why
you need to watch these on your chart.
Nicola Delic Double Helix System
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How to apply an EMA onto your chart:
From the menu, go to Insert -> Indicators -> Trend -> Moving Average.
Once you’ve applied the Moving Average onto your chart, you will be
prompted with the Properties window.
Settings for the EMA 13:
Period: 13
Shift: 0
MA Method: Exponential
Apply to: Close
Style: Green
Settings for the EMA 21:
Period: 21
Shift: 0
MA Method: Exponential
Apply to: Close
Style: Orange
Nicola Delic Double Helix System
www.elliottwavedna.com 13
Buy and Sell Trade Rules
Here are the rules for identifying and entering Buy trades using the
Double Helix system, followed by a few examples to help you grasp the
rules. All conditions must be met before any trades may be considered.
Buy Trade Rules
1. The current trend of the instrument you want to trade needs to be
bearish. 2. Wait to spot divergence on BOTH RSI indicators.
3. Wait for the 13 EMA indicator to cross above the 21 EMA indicator. 4. If all of the above conditions have been met, proceed to enter the
market with a Buy trade right after the EMA crosses. 5. Place your Stop Loss at the most recent Swing Low.
6. Place your Take Profit the same number of pips away from your entry as your Stop Loss (1:1 Risk/Reward Ratio).
The rules for identifying and entering Sell trades using the Double Helix
system are simply the reverse of those for Buy trades.
Sell Trade Rules
1. The current trend of the instrument you want to trade needs to be bullish.
2. Wait to spot divergence on BOTH RSI indicators. 3. Wait for the 13 EMA indicator to cross below the 21 EMA indicator.
4. If all of the above conditions have been met, proceed to enter the market with a Sell trade right after EMA crosses.
5. Place your Stop Loss at the most recent Swing High.
6. Place your Take Profit the same number of pips away from your entry as your Stop Loss (1:1 Risk/Reward Ratio).
Nicola Delic Double Helix System
www.elliottwavedna.com 14
Buy Trade Example
The first example that we can look at is the EUR/USD which you can see
on the image below. The price was moving lower in the first half of the
session and after that we spotted divergence (I marked divergence with
points 1, 2 and 3).
After that, we needed to wait for the 13 and 21 EMAs to cross each other
so we could start buying this pair. At the cross we entered a long position.
This point is marked as 4 on chart.
For our Stop Loss we use the most recent swing low, so we place the stop
loss at the lowest point of divergence (marked 5 on chart), and we use a
measurement of the same amount of pips for our Target point (marked
6).
Nicola Delic Double Helix System
www.elliottwavedna.com 15
Sell Trade Example
For the Sell example we are going to look at the CHF/JPY pair on the 1H
time frame. We can see that for a few days this JPY cross has been
trading upwards, and we finally see divergence (I marked divergence with
points 1, 2 and 3 on the chart below).
The next stage is to wait for the EMA crossover before selling this pair.
After 3 candles we got that crossover and then took a short position (this
entry is marked 4 on chart).
For the Stop Loss we use the most recent swing high, so we place the
stop loss at the highest point of divergence (marked 5 on chart) and we
use the same amount of pips for our Target point (marked 6).
Nicola Delic Double Helix System
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Buy Trade Example
On the image below you can see that at points 1, 2 and 3 we have
divergence on both RSI indicators. So we wait for a potential long
position.
A crossover happened quite rapidly. I marked this point with a 4 on the
chart above. This is the point at which we would enter a long position.
For the Stop Loss we use the most recent swing low, so we place the stop
loss at the lowest point of divergence (marked 5 on the chart) and we are
use the same amount of pips for our Target point (marked 6).
We managed to get a nice profit before the end of the week.
Nicola Delic Double Helix System
www.elliottwavedna.com 17
Sell Trade Example
Let’s take a look at another Sell trade. On the chart below you can see
that the EURO has been moving higher and we notice divergence and that
is a sign that we can start looking for sell positions (divergence showed at
points 1, 2 and 3).
Again we would wait for a crossover of the two EMA’s, and we enter a
short position at point 4.
For the Stop Loss we use the most recent swing high, so we place the
stop loss at the highest point of divergence (marked 5 on chart) and we
use the same amount of pips for our Target point (marked 6).
Nicola Delic Double Helix System
www.elliottwavedna.com 18
Conclusion
I would like to share a few powerful tips that will help you get the most
out of trading the Elliott Wave DNA system and give you the very best
results.
The system can be applied to all timeframes and currency pairs with equal
success but I personally prefer to trade it on the following pairs as they
tend to perform the best for me.
It might be different for you and that’s all right, but I’m sure you’re
curious to know the pairs that I trade, so here they are: EUR/USD,
GBP/USD, USD/CHF, USD/JPY, AUD/USD, USD/CAD, EUR/JPY and
GBP/JPY.
Tighten your Stop Losses around High Impact News Releases or avoid
trading at least 15 minutes before and after these events.
I have also found that the best results can be achieved on the 15 minute
timeframe for day trading and the 1 hour timeframe for swing traders.
This system has served me very well and I know that you will enjoy
trading it too. If you can follow the rules and these simple guidelines you
are well on your way to success as a trader.
I wish you the very best in all your trading endeavors.