July 16, 2010

AB = CD Pattern will help you Swing Trading and Scalping Futures Contracts

We took some time in the trade room today to learn more about a very simple pattern that every trader should know.

The AB = CD pattern is an easy way to tell where the market is headed (or not headed) and we use this every day in out trading.

Serious traders need the best tools, and this tool is something I would never trade without!

Enjoy today’s video and see you on Monday @ 745am EST in the trade room!

 

 
AB = CD PATTERN:

Length/Range of AB = CD

Time of AB = CD

We use this for our entries, our stops, and our exits

We like to know how far the trade is likely to move

I use this just before I enter my trade, when im planning my stops and my targets.

Traders of all types, scalpers, day traders, swing traders, almost any type of trader can use this!

These patterns can be used on any market, any timeframe, any chart type (minute, tick, volume, range, hourly, etc)

Here’s how I use it:

– Breaker pattern setting up

o AB = first leg

 Must take < 5 mins to set up

 What is the trading range of AB? This will be my potential profit target for CD

o CD = second leg

 We expect the TIME to be the same as AB for the trade work out

 We expect the same trading range to occur as well

    schooloftrade

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