Trading ABCs with SuperBars     11/12/2009 4.45pm

ABC_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. Auto ABC
2. Super Bars
3. Fib. Bands
4. Globex Pivots
5. Price Profile
Recent Posts
  • Trading Symmetric Triangle Patterns
  • Trading Cup and Handle Patterns
  • Trading Megaphone Patterns
  • How to trade your Dragon
  • Trading ABC Patterns
  • Parabolic Arc: What Goes Up...
  • Trading Large Gaps
  • Trading Parabolic Arcs
  • Behavioral Biases
  • Trading Chart Patterns Prematurely
  • Developing SPX Cup and Handle Pattern
  • Trading Patterns with Market Context and EquiVolumeTrend
  • Trading Patterns with Market Structures
  • Trading Failed Chart Patterns - H&S
  • Happy New Year 2016
  • Trading Phases using CMI
  • Volatility Zones
  • Trade Tools and Support Tools
  • Trading Confluence of Chart Patterns
  • Trading ABC Patterns with Options
  • Categories
  • 2B Patterns
  • ABC Bullish
  • ABC Bearish
  • Books
  • CMI
  • Double Bottom
  • Double Top
  • Dragons
  • Elliott Waves
  • Failed Chart Patterns
  • Fib. Bands
  • Fib. Zone Pivots
  • Fibonacci Levels
  • Floor Pivots
  • Gartley/Butterfly
  • Globex Pivots
  • Head and Shoulders
  • Inv. Head and Shoulders
  • Market Structures
  • MegaPhone
  • Multiple Tops
  • Multiple Bottoms
  • Options
  • Parabolic Arc
  • Pivots
  • Price Profile
  • Seminars
  • Strageies
  • SuperBars
  • Triangles
  • Trading
  • Psychology
  • Videos
  • Volatility Zones
  • VWAP
  • Wolfe Waves
  • X5 Patterns
  • Archives
  • Nov. 2015
  • Oct. 2015
  • Before 2015