I post two pictures here, 1508 and 377. Obviously there was another ABCD on 1508 this morning, but 377 is quite choppy from my point of view. Finally, this would have been a good trade. What do you think about this setup? Do you mean that one has to jump in every ABCD on the 1508 that one can see. I know that they are considered as being powerful. Would you enter at the close of the 2 green arrows bar in 377? This is the bar that closes also with the 1508 ABCD setup close bar.
Another question: does one of the guys here maybe know an indicator that brings these patterns up? I know the price action swing indicator, but I think it does not highlight exactly these kind of patterns, at least as far as I understand this indicator
That is not an ABCD retrace as point "A" must make a higher high or had we been in a downtrend a lower low.
And you are very correct about the choppiness this morning, i have not placed any trades as of yet - you may recall an earlier post when i stated be very cautious when you get up and see a vertical move in the Asian session, these Asian vertical moves almost always results in chop during the Euro session. It's best just to wait until the U S Session
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#1 Explosive vertical move in the Asian session, I have warned of this that when it happens the Euro session is usually chop soup and it once again held to form
#2 Sideways chop failing to make new highs or lows
#3 Appears to be a possible trade point with a retrace to the MA after a higher high. see the horizontal line at 1.4415 that represents the days high and if you took the trade you lost money. Always let these areas clear and then get the signal
#4 A double bottom after a slight higher high but once again trading right into the days highs, this is a perfect example of what generally happens after these vertical moves
#5 Appears at this point to be a lower low so we would look for a retrace back to the MA or Top of the Cloud for a short. Remember my explanation of the Clouds S&R the bottom is support and strong support if the cloud is thick and has gone sideways for an extended period. this move down stops to the tick on the bottom of the cloud but also notice the horizontal line at 1.4379 and the rule look left to trade right. Look back around point #2 see that line is sitting right on those candles telling you this is a strong area of support
#6 As price retraces off of that low it appears to give a short signal as price pulls back to the MA and top of cloud. You know that you have strong support at 1.4379 do not trade into support - you want a long signal at support you want a sell signal at resistance
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As you can see to the right after point 6 price still has not gone below 1.4379
This is how you need to read this price action, it will keep your trading account funded so you can trade a good chart
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