In the last update I showed the larger time frame AB=CD patterns in the SP 500 and other indexes. Yesterday the SP 500 made an attempt to the upside but so far has failed.
The chart shows the SP 500 Emini daily ABCD pattern and Fibonacci retracements on the downside using the CD leg.
Have a great trading day.
Leslie Jouflas
www.tradingliveonline.com
Today the SP 500 will open with a gap down. Watch to see how price acts off the open and first hour, does price trade back up into the gap or higher or makes an attempt and turns lower.
Leslie Jouflas founder of www.tradingliveonline.com website and co-author of ‘Trade What You See’ and ‘Essentials of Trading’ will show you one of her favorite and most frequently traded patterns, the AB=CD pattern setup. This pattern has been forming since charts were first used in trading. It is considered by some to be an ideal pattern for traders to study and learn and can be used in most markets and time frames.
It can be important for trader’s to focus on learning one or two setups to help improve their trading and Leslie will dedicate this one hour webinar to teaching the details of this set up including:
The history of this pattern and how to identify the structure of the pattern that includes basic Fibonacci ratios.
The warning signs that may signal a shift in the market momentum.
The important variations of this pattern important in identifying entry locations.
Date: Tuesday, October 26, 2010 Time: 4:30 pm EST Presenter: Leslie Jouflas, Trading Live Online Register Here
The SP 500 Emini had a false breakout to upside today. Here is a post from April of this year that is posted in our media section at www.tradingliveonline.com, it is a short video that discusses false breakouts. Failed Patterns can be huge trading opportunities…
I’ll be updating the blog again today with a new video update.
Recently I watched the Movie 13 days which centers around the circumstances that occurred during the Cuban missile crisis of 1962. While watching the Chaos unfold on Screen I wondered what it would have been like to live through that period. Ofcourse being a trader It didn’t take too long for me to become curious how the markets behaved during these hostile times as well. In looking back at the daily chart of the Dow Jones during October 1962 there was a clear ABCD buy pattern that completed right at the climax of the Cuban missile crisis. This buy pattern, that completed just as people were hoarding food for their bomb shelters, was the beginning of a 3 year bull rally in the Stock market. Traders that take the time to look back through market history will find that this is not an isolated event. Even during the most uncertain of political times the Markets continue to form repetitive patterns.
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