Chart Patterns Video for April 15, 2013

April 14, 2013 · Posted in ABC Bearish, ABC Bullish, Head and Shoulders, Pattern Trade · Comments Off on Chart Patterns Video for April 15, 2013 

Chart Patterns Video for April 08, 2013

April 7, 2013 · Posted in ABC Bearish, ABC Bullish, Pattern Trade, X5 Patterns · Comments Off on Chart Patterns Video for April 08, 2013 

Head and Shoulders Pattern with Market Context

December 19, 2012 · Posted in ABC Bearish, Head and Shoulder, Head and Shoulders · Comments Off on Head and Shoulders Pattern with Market Context 

Head and Shoulders Pattern with Market Context

Market Context is one of the most important concept traders should master before they start trading. Most traders have some concepts of Market Context… If price is above 50 EMA or 200-SMA and price is trading above Pivot or below Pivot etc. But solid understanding of Market Context makes traders confident in trades. Every trade I study and plan, I must clearly know what Market Context I am trading… I trade Price Patterns with Market Context. Market context validates, shows where entries and stops and where to place targets. If Market turns against the trade, I would even have a plan of where my theory fails.

Today afternoon around 1pm, I started seeing a Head and Shoulders Pattern develop in @ES. I started to notice CMI on 5m gave a sell signal about the same time. ES was trading around 1440. I started watching the market price action and wanted to trade below the Neckline of H&S at 1437. Another key element I noticed was today’s Opening Range and the First Hour Low was set at 1437.

This combination of level 1437 (Neckline, First Hour Low around Floor Pivot) gives me a strong H&S trade. I initiated a SHORT trade at 1437 with a STOP of 2.5 pts (1439.5). My Targets were set by measuing Head to Neckline. The fib. ratios of this length below Neckline sets my targets: 1431.5, 1430 and 1428.

About 30 minutes into my trade, ES traded below 1434 and reversed its trend and traded above my Short price. I have 2.5 pts STOP at 1439.5. ES traded at 1438.25 but again it reversed in my Short direction. I knew this time I wanted to close at least part of it around 1434 (+3 pt). Then I kept my next target at 1431.5 and moved my STOP to 1437. (B/E).

By the end of day, my next target was hit at 1431.5 (+5.5 pts) . My previous target gained (+3 pts). I think H&S will work further down overnight and trade below my exits (1431.5).

Anticiaption of Pattern Targets

November 20, 2012 · Posted in ABC Bearish · Comments Off on Anticiaption of Pattern Targets 

I am a big believer of Confluence Zones. When price levels from multiple trade setups (could be totally different) gives a confluence, this has a bigger meaning for me. I never use price levels to trade. I trade Pattern Setups NOT the price levels. So, this price level confluence I use it for mostly EXITING the trades but not enter the trades. Anticipation is an emotion where we expect a certain event (could be good or bad) to happen. In trading world as part of trading plans, we must expect or anticipate objective ideas of how a trade may result. In other words, we trade a setup or pattern and anticipate it to reach target or hit the stops…

Today I was trading an ABC Bullish pattern in ES 1220 Tick charts. This ABC Pattern does not have 62% retracement but after a C retracement (58%) it started trading above 200-SMA. This itself is a confidence booster. The EL was also trading above MidBand at 1383. I thought it was a good entry at 1383 with a stop loss at 1381. Then came the analysis of my potential targets. From ABC, 62%AB is at 1386.25 and 79% is 1387.5. Now from Fib. Zone Pivots, the first FZP resistance zone is at 1386.5 to 1388. This phenomena occurs pretty regularly. So, I thought I have a great chance of trading ABC for at lease 3 points Profit (to 1386.5) with a STOP at 1381.5.

Trade was entered at 1383 (EL above 200-SMA and Mid Fib. Band). Target: 1386.5. Here is how the trade worked. I exited 3 contracts at 1386.5 (3.5 pts profit) and then I waited for my next target 1387.5. 1387.5 was traded but my next target was never filled. My Trailing Stop Loss was at 1385. So, I exited my second set of Contracts at 1385 (netting 2 pts Profit).

Advanced ABC Chart Patterns (Webinar)

October 10, 2011 · Posted in ABC Bearish, ABC Bullish, Pattern Trade, Seminar · 1 Comment 

WEBINAR On Thursday, Oct. 13, 2011 at 4.30pm EDT

As a follow up to the Trading Chart Patterns presentation I gave in June 2011,
I am presenting another FREE webinar, focusing on discussing my current research
on the Advanced ABC Chart patterns and its trading methods.

Register for the webinar:

Goto Meeting Link:

The webinar will be on Thursday, Oct. 13th, 2011 at 4.30pm EDT.

My presentation topics include:

* Market Context and its Importance
* Pattern Components like Strength, Location, Size, Symmetry and Clarity
* ABC Patterns and its types
* Trend Quality
* Trading ABCs, Head and Shoulders and Double Top/Bottom Patterns

I will continue to present few other topics in future at BMT. Please request any
specific topics or any other ideas you may want me to discuss , please send an email.

Looking forward to meeting all of you on Thursday, Oct. 13th, 2011 at 4.30pm EDT.


Gold ABC Bear Update…

January 20, 2010 · Posted in ABC Bearish, SuperBars · Comments Off on Gold ABC Bear Update… 

Jan. 20, 2010

After a series of Up/Down swing days, Gold is finally confirming its ABC Bear Entry Setup as it trades below (EL) 1128 level. I also would like to see a Strong Bearish (RED) SuperBar for further confirmation. The potential targets for the ABC Bear are 62% (1067), 100% (1009).


ABC Bearish

Trade Log: Jan. 15, 2010

January 17, 2010 · Posted in ABC Bearish, ABC Bullish, Globex Pivots, Market Structures, SuperBars · Comments Off on Trade Log: Jan. 15, 2010 

On Friday, another ABC Bearish pattern emerged from the overnight Globex high (1147.25) to the Globex Low (1137.5). Both Globex High and Globex Low were also marked as Market Structures (MSH and MSL) patterns. At the market open, ES retraced 66% into the AB to mark ‘C’ (1144) pivot and completed an ABC Bearish Pattern. A Close below 200-SMA and EL (1142.75) produced a Sell signal into AB pattern. Targets were: 1138 at 62%, 1134 at 100% and 1128.25 at 162%.

Around lunch time, ES reached its 162% AB Target: 1127.5..
Another ABC Bullish (BLACK, small range) pattern also reached its near-term target (100% AB): 1131.75



ABC Bullish
Globex Pivots
Market Structures

Gold in ABC Bearish Pattern

January 12, 2010 · Posted in ABC Bearish · 5 Comments 

Gold may be ready to retrace? Gold has ABC Bearish pattern and today’s sell off (23 pts down) could be the first day of retracement. Gold made a high of 1227 December 2009. Its recent swing low of 1074 and its retracement (C at 1162) may be signaling a potential ABC Bearish Pattern.

Closing below the Entry Level of 1128 is the first signal of confirmation of ‘C’. If the bearish trend continues, the first target is near 1067 (62%) and 1009 (100%) of AB Range.

The Time Targets in Gold are: Jan 28 to March 05.Gold_Jan1210_Targets

TradeLog: Jan 12, 2010: Three-Valleys, Broadening and ABC

January 12, 2010 · Posted in ABC Bearish, ABC Bullish, CMI, Three Valleys · Comments Off on TradeLog: Jan 12, 2010: Three-Valleys, Broadening and ABC 

Jan. 12, 2010

Today, ES continued its yesterday’s significant patterns: ABC-Bearish and Three-Valleys in their bearish trend. ES Opened near 100% of AB Range around 1133-34. Until noon ES attempted several times to close above the 200-SMA. CMI5 was red most of the day until 2pm. Around 2pm, the first bullish signal was triggered by CMI5m Green bar.

Today’s another major pattern: Broadening Bottom. This pattern was visible right from the open. I thought it was going to be a Flat Bottom Broadening pattern. Around 11am, the pattern made its last failed attempt to trade above 200-SMA and sold off until 2pm.

The late day rally produced another ABC Bullish pattern aided by CMI5 strong green bars.



ABC Bullish

Market Structures

Trade Log: Jan. 05, 2010

January 5, 2010 · Posted in ABC Bearish, CMI, Floor Pivots, Globex Pivots · 2 Comments 



@ES was pretty lethargic at the open. Started off with a Rectangle channel and traded between
1126 and 1130.75. At 10am, I was expecting ES to trade near Pivot Point (1126) and trend
to continue lower. About 10.15am or so, ES started to rally and started showing strength.
SuperBars and CMI both picked up strength with Green bars.

1. My first trade was a setup to trade one-tick above the Globex Pivot on a breakout. Placed a Long
order to trade upto GbxHigh from 1129. closed near 1130 to 1130.5
Stops were placed below the vWAP (1127).

2. My second trade was the best trade today. After closing my first trade, I placed
a Sell order to short 3c at 1132. I was near certain that R1 (1132.5) will be
resistance and could retrace to pHi. Around 10.45, my trade was triggered and
quickly retraced. After some side-ways anxious time, it started its color and
traded below GBXHI (1130.75). Closed all around 1130 to lock 2 points… Watch the
Pipe Pattern from R1. This is one of the high probability pattern.

3. Some one wrote to me during the setup asking the current retracement was an ABC Bullish Pattern.
It was, but it is NOT a perfect ABC Bullish pattern and internals were clearly
weak. Hence, I wanted a clear confirmation to trade.

Around Noon, the price retraced to GBXHigh (1130.75) and signaled ABC Bearish (Perfect)
pattern. This is one of hte best pattern to trade. I placed another trade around 1130
to short. This time the targets were near 1127. ABC Retraced more than 100%, see
one of the chart.

4. I have NOT traded this as I was little skeptic about PP, YHI bounce
from 1126.5. Prices made a dramatic rally to R1: 1132.5. Did not participate
as I was busy working something else.

ABC Bearish
Fib. Bands

Globex Pivots
Floor Trading Pivots

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