The ABC Pattern is the simplist form of wave structure.  It is most often found in corrective moves throughout the higher level trend.  The A B C trade setup, it's as easy as 1 2 3!

The Setup

Another super opportunity setup is an ABC Pattern that completes in or near one of our support and resistance zones.  An ABC move is a classic structure which frequently occurs in all markets.  It is composed of two 'legs' of equal length (A and C), separated by a smaller pullback or correction wave (B).  We understand that this is very complex; for this reason, we intend to provide further explanation and details soon.  For now, see the screenshots below.

Entry is determined by your own comfort level as stated before; 1) limit order at the edge of the zone. 2) limit order in 'x' number of ticks into the zone. 3)Waiting for a reversal bar, then a market order. 4) Even more conservative would be to wait for a reversal bar, then place a limit order 2 ticks beyond the extreme of the reversal bar.  A combination of these entry techniques can give you the opportunity to 'phase' into a position.

Remember, we are not an educational service.  We specialize in delivering extremely precise support and resistance zones daily for the S&P 500 E-Mini Futures, Russell 2000 Futures, and the British Pound.  To fully understand the ABC Pattern trade setup, you might have to do your own additional research.