ABC Pattern with Market Structure Low (MSL)

December 18, 2009 · Posted in ABC Bullish, Double Bottom, Market Structures · Comments Off on ABC Pattern with Market Structure Low (MSL) 

ABC patterns are corrective patterns where trades are only traded in the Trend Direction (in AB Direction).
ABC Pattern formations are more powerful when a Market Structure Low (MSL) or MSH is part of the structure.
These patterns are traded with Market Context using Fib. Bands and MSH/MSLs to find perfect patterns.

Here is the @ES chart in 1220 tick time-frame, where point ‘A’ was MSL. Also, note point ‘A’ is outside the
extreme Fib. Bands. After a retracement of 90% (small Triangle of only 2.5 points), price retraced back into
the Fib. Bands and signaled an AB trade at 1090. The initial targets were very small: 1091-92 (100-127%).
This pattern continue to trade higher and seen major resistance at VAH (Value Area High).

ABC_MSL

ABC Bullish
Fib. Bands
Globex Pivots
PriceProfile
Market Structures

Divergence Trade using CMI 5m

December 15, 2009 · Posted in CMI · Comments Off on Divergence Trade using CMI 5m 

@ES opened near Previous day’s Low 1104 and traded side-ways in the first half hour. Around 10am, ES brokeout the trading range from 1104-1106 and traded higher. By 11am, ES traded near Value Area High (1109) and Point Of Control (1108.75) cluster. CMI (Combined Market Internals) were showing the Internal weakness as CMI made a lower-high when ES reached to POC/VAH cluster signaling a potential divergence. CMI post red-bars until 2pm as the divergence resulted in price trade from 1109.25 to 1104. CMI5Divergence_Dec15098

Fib. Bands
Globex Pivots
Floor Trading Pivots

PriceProfile
CMI
kTrend

Video: ABC Bullish (14 mins)

December 6, 2009 · Posted in ABC Bullish, Videos · Comments Off on Video: ABC Bullish (14 mins) 

2B Pattern in RIMM

December 6, 2009 · Posted in 2B Patterns · Comments Off on 2B Pattern in RIMM 

2B Patterns are described as failed Double Top and Double Bottom patterns. They are most powerful patterns but work well in larger time-frame charts where as in small-time frames, they are only 50% successful.

2B Patterns form when price fails to trade above previous new High or below previous new Low. 2B Patterns also have very specific rules to trade.

Here is RIMM’s Daily chart with 2B Patterns. (I’ll write more later today on these patterns)

RIMM_2B

Example: Multiple Top in LOGI

December 6, 2009 · Posted in Multiple Top · 2 Comments 

LOGI_MultipleTOP

Example: Multiple Top in GSH

December 6, 2009 · Posted in Multiple Top · Comments Off on Example: Multiple Top in GSH 

GSH_TripleTop

Example: Double Top in WAG

December 6, 2009 · Posted in Double Top · Comments Off on Example: Double Top in WAG 

wag_DT_Nov2309

Example: Double Bottom in NDAQ

December 6, 2009 · Posted in Double Bottom · Comments Off on Example: Double Bottom in NDAQ 

NDAQ_DB_Nov2309

Example: Double Bottom in COW

December 6, 2009 · Posted in Double Bottom · Comments Off on Example: Double Bottom in COW 

COW_DB_Nov2309

Example: Double Top in SHLD

December 6, 2009 · Posted in Double Top · Comments Off on Example: Double Top in SHLD 

SHLD_DT_Nov2309

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