The "ABCD" Pattern
This is a very popular pattern that has worked for years. It is a very simple pattern. The strategy is to let this ABCD setup come to you. Say it out loud "Let this ABCD set up come to you!"
A-uptrend price action
B-pullback price movement from the top
C-sideway action, consolidation
D-run up price action
Here is what ABCD pattern looks like:
For this particular CNET 1/4/18 example, the first ABCD set up happened premarket, the 2nd occurred after the 9:30AM bell.
The best time to enter the trade would be where the red arrow and circle is (end of C; beginning of D)
Notice the green volume bars perk up just before 11AM which is also indicates end of C, beginning of D.
Don't ever trade premarket, because it is chaotic.
Millionaires trade the setups
Steven Dux said "I only play the perfect setup."
setup is the keyword, are you playing "setups"? And are they the "perfect setups"?
If you want to have Steven Dux's bank,
WAIT... for the "perfect setups"
- Don't break the rules!!!
- Tim Sykes says "Don't chase!"
- Don't get greedy!
- Set your risk level.
- Cut losses FAST.
- Take singles
- Trade Less!
- Be patient!
- If you want to be a millionaire, let the "setup" come to you
- Wait for "C", "C" turns into "D" and "D"=$$$
"wait for the perfect setup"
Note: There are several hot catalysts right now in beginning of 2018. They are: Block chain news, china stocks besides earnings winner, partnerships, conference, tv appearances... etc.
Reference>> Wait for the Setups - masmoola