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  Trade Tools and Support Tools     11/01/2015 4.45pm

SB ABC X5 CMI Trade Tools and Support Tools

I am a 100% Patterns based trader. Means, I take trades purely based on a few selected chart patterns which have the best probability of success at that instant. All my decisions of trading comes from Patterns which are validated/supported/confirmed by 'Market Context' and 'Market Internals'. Will write more on 'Market Context' soon. My favorite Chart Patterns to trade: ABCs, Head and Shoulders, Gartleys (all X5), Cup and Handles, Channels etc.

I value and spend more time analyzing 'Market Context' than pattern itself. 'Market Context' is something every trader uses, it is analyzing the market and figuring the current state/trend/direction of a chart using tools like Moving Averages, Pivots, Trend Tools, and Volatility etc. 'Market Context' validates a chart pattern/setup. In my view, most traders use some form of 'Market Context' and usually experienced traders have a very good sense of 'Market Context'.

'Market Context' supports pattern setups and 'Market Context' cannot (should not) be traded by itself. I group Tools into two types: 1. Trade Tools. 2. Support Tools. 'Trade Tools' allows you to make trade execution decisions (Entry, Exit and Targets) where as 'Support Tools' will support and validate Trade-Decisions for Trade Tools.

Few parameters to watch in 'Patterns' and 'Market Context':

1. TREND. This is utmost important as patterns must be traded with its own underlying trend and Market Internals. I use Trend tools like SuperBars and CMI etc.
2. Size/Orientation/Location: These are kinda tied to individual trade-plan but Orientation and Location are pretty much based on Pivots and MAs etc.
3. Pattern Integrity/Uniformity/Validity: Basic concept here: A bullish pattern (bullish legs)must not exhibit excessive bearishness and vice-versa. Pattern also must be supported by key S/R levels like Pivots, key moving averages etc.
4. Volatility: Most traders cannot trade excessive or risky volatility. I look for VLTY below 50 for all my new trades and be very cautious once VLTY starts ticking up above 50. If VLTY is above 100, I will exit all my positions.
5. Execution: This is individual plan and traders skill on how any one enters and exits trades. All setups must have clear Execution rules and trade protection tools like 'Trail Stops'.

Trade Tools
'Trade Tools' in my case are 100% Chart Patterns. I build trade setups using Patterns and Market Context. These setups are fully validated by 'Support Tools' and only traded in favorable conditions (Trend confirmation, volatility etc.) My primary trade patterns are: 'ABC', 'Gartleys and all X5 patterns', 'Head and Shoulders', 'Channels', 'Triangles, 'Cup and Handle' and 'Parabolic Arc' patterns. All these patterns have strict formation and validation rules and have very specific 'Entry', 'Exit' and 'Target(s)' rules for trade executions.

Support Tools
I use various support tools. Remember No Support Tool is traded by itself. Most basic support tools are Moving Averages and Pivots (Floor, Globex, Fib. Zone Pivots) to show key Support and Resistance levels/areas. Support tools include Trend Tools like SuperBars (to show Underlying Instrument Trend), CMI (Combined Market Internals) and Fib. Bands. I use 'Trail Stops' exclusively on all my charts to protect my trades. Will write more on Trail Stops later.

Trade Tools Support Tools
ABC, Head and Shoulders, Gartleys (all X5), Channels, Cup and Handle, Parabolic Arc, Triangles Super Bars, CMI, VLTY, Trail Stops, Market Structures, Pivots (Floor, Globex, Fib. Zone)



Tools
1. Auto ABC
2. Gartleys/Butterflys (X5)
3. Cup and Handle
4. Triangle Patterns
5. Head and Shoulders
6. Fib. Bands
7. Super Bars
8. Market Structures
9. Combined Market Internals
10. Fib. Zone Pivots
11. Globex Pivots
12. Floor Trading Pivots
13. Volatility Zones
14. Trail Stops
  Books/Poster
     Trade Chart Patterns Like The Pro (Book)
     Trade Chartmuster wie die Profis (Book)
     Trade Chart Patterns (Poster)
  Indicators
      Auto ABC
      Market Structures
      2BTop/Bottom
      TrailStops
      EquiVolume
      Combined Market Internals
      eSix
      SuperBars
      Fib.Zones
      Fib.Bands
      Volatility Zones
      GapCharts
  Patterns
      Today's Posts
      ABC Bullish
      ABC Bearish
      AB=CD
      Gartleys (5-Point patterns)
      Head and Shoulders
      Inv. Head and Shoulders
      Cup and Handles
      Parabolic Arcs
      MegaPhones
      Channels
      Flags/Pennants
      Triangles
      2B Top and Bottom
      Double Top and Bottom
      Dragons
      Market Structures
  Blog Posts
      Patterns within Patterns
      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 an
      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
  Blog 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
      Strategies
      SuperBars
      Triangles
      Trading
      Psychology
      Videos
      Volatility Zones
      VWAP
      Wolfe Waves
      X5 Patterns
  Combo Package Offers
      ABCPack1
      ABCPack2
      ABCPack3
      ABCPack4
      ABCPack5
      ABCPack6

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