Trade Log: Inv. H&S and ABC Bullish Patterns

January 10, 2010 · Posted in ABC Bullish, Fibonacci Bands, Market Structures · 4 Comments 

Inverse Head and Shoulder is one of the greatest pattern to trade. On Jan. 8th morning, ES opened lower after trading Globex range of 1131-1139.5. In the first 15 minutes, Inv. H&S pattern was clearly visible as I marked the Neckline at 1136 level. Also, ABC Bullish pattern was forming from the Globex Low (also MSL). Around 9.50am, ABC Bullish pattern crossed its Entry 1134 level. Confirmed by kTrend, I took the first trade at 1134 with anticipation of Inv. H&S Breakout.

Inv. H&S range from the neckline to the Head (low) was about 5 points. Hence, the target from the Neckline (1136) will be around 1141 area.

The first band of Fib. Zone Pivots on ES was marked between 1139 to 1141. This is another set of targets coinciding with Inv. H&S and ABC Targets.

From 10am to almost 2.30p, ES traded in a rectangle channel (narrow range – 1135 to 1138) and finally traded above the Previous High of 1138.75. By 4pm close, ES traded in the Fib. Zone Pivots band (1139-1141) to close at 1141.5.

INVHS_Jan08107

INVHS_Jan08107

FZP_Jan08103

InvHS_Jan08104

ABC Bullish
Fib. Bands

Globex Pivots
Fib. Zone Pivots

kTrend
Market Structures