ABCs with SuperBars
November 12, 2009 12:06 PM

One of my best patterns to trade is ABC. When perfect ABCs form with Market Context, ABCs are far more reliable than other form of ABCs. I use ONE trend indicator (kTrend) and a single Paintbar (SuperBars) to trade these type of ABCs.

Here is a perfect example of how a trade was initiated this morning in @ES.
Just after the first hour, @ES started showing signs of weakness after making a new intraday high. Usually this pullback (weakness) extends more than 78% of prior swing. Around 10.30am, @ES bounced off the 200-MA and started trading above POC (1095.25). The key trade would be to watch for a GlobexHigh *Long position*. If price closes consecutively above GBXHi for 2-bars or more, then trade would clearly signal Upside.

About 10.57am, price started breaking down as ABC Bearish pattern setup. The best trade now is the ABC’s bearish EL with SuperBar Trade. Once SuperBars Trade is below the EL with Bearish (RED color),
a Sell signal is triggered.

Targets are: POC & .62AB area (1095), VAL (1093) and 1.0AB (1092-1093).
Ultimate Target for this ABC Bear is: GBXLo, POC1 and 1.62AB Area: 1088.5

Stop is above the ‘C’ level.

ABC_SuperBars

Tools

1. ABC Bearish
2. SuperBars
3. FibBands
4. Globex Pivots
5. PriceProfile

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