Perfect ABC (Update)

January 7, 2010 · Posted in ABC Bullish, Fibonacci Bands · Comments Off on Perfect ABC (Update) 

Here is the final chart of Perfect ABC…
Reached 162% and 200% of AB Range


Perfect ABC Bullish Setup

January 7, 2010 · Posted in ABC Bullish, Fib. Bands, Fibonacci Bands · 4 Comments 


A Perfect ABC Bullish is the best way to trade ABC Patterns. This morning @ES produced a Perfect ABC Bullish pattern on 1220 Tick chart. The result was excellent. Here is the description of the ABC Pattern.

1. Overnight (Globex session) produced a range of 1127 to 1134 in @ES, and traded relatively in steep downtrend. At the opening bell 9.30am ET, from the Globex Low of 1137, ES traded higher near the POC level of 1132. This produced the first leg (AB).

2. The Globex Low was printed outside the Fib. Bands. This may have been the first clue for a Perfect ABC. But completion of AB Leg may be stronger indication.

3. Price closed above the mid-Fib Band. This confirms the ‘B’ swing point.
4. Around 10am, market reversed and sold off to 1128 forming ABC Pattern. This setup has all inclinations of Perfect ABC, since A formed outside the Fib. Band, B- Above mid Fib. Band and ‘C’ is forming within the AB leg and completed at least 62% retracement.

5. Now to trade this ABC, I need price closing above the EL. EL was also near the strong cluster of pLow, S1 (1129 – 1130). If Price closes strongly above this range, it is a PERFECT ABC and can be traded upto 100% of its AB Range to 1133. Second Target may be set for 162% of AB at 1136.
6. About 10.45am, Price reached 1133 to make about 3.5 points profit.
7. Next target is set at 162% of AB at 1136.

ABC Bullish
Fib. Bands
Globex Pivots

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

Trade Log: Jan 04, 2010

January 4, 2010 · Posted in CMI, Floor Pivots, Globex Pivots · Comments Off on Trade Log: Jan 04, 2010 


Today was an interesting day. A Strong open (about 8 pts up in @ES) signaled
a solid up day with Dow may closing at least 100 points up. Pre-market Flag setup
is also an interesting setup with a potential trade.

Pre-market, price retraced to the Globex Mid point in a Flag setup.
Initial reaction was to wait for the Pivot (1114.75) buy.
But right after the open the trend was clear. I wanted to buy above
Globex High (1120.5) with a setup to pHI: 1124 to Fib. Zones Range (1125-1126).

1. I placed an order of 8c at 1121 just above GBXHigh. Filled at 1121.25.
Targets were set at 1124-1125. Also Stop set at 1118 (3 points), just
below the bands… About 10-12 minutes later all Contracts hit the targets.
Closed few at pHI. Check Internals, CMI and kTrend for a pullback.

2. Around 11am, market lost its momentum and trading very slow. Still
uptrend as SuperBars were strong. No Patterns formation visible other than simple breakouts.
Trade in the direction… But my CT instinct kicked in on red CMI Ribbon.
So, I took a 3c short with a very short time frame ideas. Also, betting on market
trading at R2 and may be tired. Wanted 1-2 points on 3c. About 10-15m
later, still prices were printing GREEN SuperBars. I was in 1 pt profit
so, I peeled them out slowly.

3. 1.30pm: Still thinking it will move up. CMI5 turned RED around 12.30pm.
R2 seems solid resistance. Saw first Red on CMI15…. A risky setup.
Traded Short thinking there will be TICKDUMP and then moveup. Wanted a CT
trade with Quick-in-Out for TickDump. Placed a stop above R2. Got just 1 point
for all 3cs about 2pm…

4. 2.30 pm: Placed a Buy above R2 with 3c.. Never traded. Around 3pm, I closed and walked off.

Only Four Trades today in @ES. Not focused on other instruments as no clear patterns were
emerging other than straight upside.

Here is the Link to Todays’ Daily Chart Blog on my website:

Fib. Bands
vWAP Bands

Globex Pivots
Floor Trading Pivots
Fib. Zone Pivots


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 Bullish
Fib. Bands
Globex Pivots
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


Video: ABC Bullish Pattern (Time:14 mins)

December 4, 2009 · Posted in Videos · Comments Off on Video: ABC Bullish Pattern (Time:14 mins) 

ABC Bullish Pattern

November 16, 2009 · Posted in ABC Bullish · 1 Comment 

ABC Pattern from Friday’s setup. Today’s ABC was triggered around 1068 with targets around 1099.5 (100%) and 162% 1107.75.
@ES Rallied in the morning to trade near 1108.


1. ABC Bullish
2. Fib. Bands
3. vWAP Bands
4. Globex Pivots
5. PriceProfile

ABCs with SuperBars

November 12, 2009 · Posted in ABC Bearish · Comments Off on ABCs with SuperBars 

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.



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

Mid Pivots Trade

November 9, 2009 · Posted in Pivots · 1 Comment 

When ranges between key resistance or support levels is wide/large,
the mid-point pivots may be used for potential Trades.

Here CMI 5m is Short from 11.10am. Was waiting for a potential
trade setup.

MidR2R3 is at 1084.25. Placed an order to sell at 1084.

Trade: Short
Short: 1084
STOP: 1086.5
Target: 1080-81


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