US30 Indices SELL @ 15860 stop @ 16010 TGT 15550 – 15250 - 15080 - 14800
In above Fig US 30 Indices you will see
that in the first a-b-c Pattern to the right you would go short at Point
b. For those who day trade and went short when the candlestick broke 15900, marking a clear breakout, would
have set a stop at 16010. However,
your stop would have been taken out and at $110 a point you would have made a
loss of $1100. For those who went short on the “a-b-c Pattern” at the breakdown
line would have entered at 15900 with a stop loss at 16010. They could have
taken advantage of a – b - c Patterns occurring after the entry point.
However, you still would have had to have waited for the high or low to be
taken out, be prepared to accommodate “Hook Retests” and to wait for the
position to move into profit. Whilst the market breached 15560 you would not
have trailed the stop loss because there was no profit locked in.
However, the
market is expected to drop on to 14785 which is 100% expansion of a –b from
point c. Do you stay in or get out? The Fibonacci Retracement is showing the
market may retest 11270. If it does you will make a loss of $2380. You will
therefore see the 1-2-3 Pattern does provide profitable opportunities
but you need to enter at the right time to ride the trend. Get in to late and
there may not be enough movement in the trend to allow you to take profits out.
What you need is a method to enter at Point b, ride the trend up and exit at
Point c, with tight stop losses for maximum profit. This is where the AB=CD
Secret
Pattern comes in.
