Asset Correlations And Setup Moves
EconMatters | May 14, 2017 02:00AM ET
We discuss some typical trading setups regarding equities and oil, so WTI, S&P 500, and the DAX instruments in this market video. We also discuss key market trading times, when the important decisions and money is being made and lost during the trading day as well. The ABC Trading Pattern is still one of the most prominent market patterns in use today.
It is officially called the ABCD Pattern but I often look at things differently than others, and I care about only the market legs of the move, not the incremental points on the diagram or chart, i.e., an A-Move, followed by a b-move, ultimately culminating in a C-Move. I think this is the better way to think about what is going on in the move conceptually, and I don`t get caught up in the particular length of the moves as well as I think this is just entirely too confining or limiting because markets can do whatever they want. Why put numerical or percentage limitations on the moves, it all depends as they say.
Always keep an open mind in trading as in my experience in markets everything has happened, much of which I thought was highly unlikely. And given the uptick in Central Bank and Government involvement in markets the last 15 years the "Impossible" has a higher probability than at any other time in the history of Financial Markets.
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