Abcd Pattern Stock Photos, Vectors, And Illustrations Are Available Royalty.This strategy will not make you a Genius at day trading but it will increase your odds of becoming profitable and a consistently profitable trader. This strategy was created after watching hours and hours of my live trading video journals and combining with other strategies. As a disclosure, I trade with my own money, and this strategy is not for everyone so your results will vary. In fact, I trade AMD almost everyday, so I am very comfortable trading this stock. Use precaution and common sense because day trading is extremely dangerous so manage your risk wisely. Please note, I don't recommend trading any stock with your eye close. For example, AMD had ABCD patterns formed almost every single day last week. (Which is another strategy I use but I won't go into details in this discussion)įrom my experience, ABCD patterns have an extremely high probability of occurring in any stock. Long channel trade between support and resistance. Returned a little after 10am to exit near the whole number. Took profit half way up into new highs failure, and missing the profit opportunity on the way down on exit criteria 3 because I wasn't in the room. Picture 3: Missed an add opportunity on a flag. It appears I also added near the whole number as a little revenge trade. Instead I entered limit orders to my profit targets before walking away again. Picture 2: Violated profit taking opportunity 3 because I wasn't around to see it. Entered limit orders using fib retracement and support/resistance to guess the pullback before walking away. Picture 1: 2 minutes ORB using stop limit orders and price=HIGH hot key. Study 4) AMD (Trading ABCD's with my eyes close, not recommended): 5/17 Study 3) AMD (Trading very fancy!): Added on pullback using multiple timeframes, Added on first flag failure, Added on second flag failure, Added on third flag from another timeframe. Reversed Short 2 min ORB, Added on pullback, Added on flag. Study 2) AMD (Failed ORB): Long 2 min ORB failure. First profit take at whole number, Exit into newer highs. Study 1) AMD: First entry 2 ORB, Second entry Bull Flag. The exits criteria are based on high probability locations where possible opportunities can occur to exit the trade. With the only exception of the third entry criteria which requires good psychology, practice and experience to master.
Upon each add, you are essentially adding to your position with confirmation of the price continuing in your direction. Scaling into your position reduces your risk because if the first entry fails to show continuation, your lost is only limited to that smaller position size. The goal of this strategy is to scale into your position using the three entry criteria described above. If the stock flips from red to green, it's highly recommended that you take the lost to reduce any further damage. There are exception to this rule such as the stock price not violating the pullback criteria. Counter pattern: Never hold a position if a stock is developing a strong pattern in the opposite direction. Towards newer highs: The majority of new highs fail so why not profit into them because the stock liquidity is at its peak.ģ. Whole number: Always obey whole numbers.Ģ. The safer and lowest risk entry is adding on the reversal/engulfing pattern.ġ. I use these three strategies to find the bottom of a pullback which all appear to work: fibonacci retracement, reversal/engulfing pattern, and support/resistance/L2.
Flag: Add to your position after a break of a flag.ģ. Pullback/Retracement: This entry requires a little bit of faith and a strong boost of mental psychology to pull off because adding on the pullback is essentially adding to a negative position, so take precaution. Opening range breakout: Enter your first entry on a 2 or 5 minutes ORB.Ģ. Mastering this strategy will make you look like a day trading Genius!ġ. So that you can scale into a position that reduces risk and maximum profits at the same. The goal of this strategy is to anticipate a developing ABCD's pattern, which happens to occur very often in the market. Before trying this strategy, it is recommended that your psychology is resilient enough to add-on to a negative position. What I've discovered are three low risk entries and three high probable exits. I've studied ABCD's extensively, analyzed charts and watched hours of live recordings of my trades.
0 kommentar(er)
