Can Trading Be As Easy As ABCD?

After enough testing I can say with complete confidence that there ARE automated systems out there that will be profitable 90% of all days.


Simplicity is key. People would never guess a moving average cross could be so profitable.

If you find the right settings for the right time frames, they are very profitable, even in choppy markets.

Then you are not trading a system, you are trading your intuition.

Or another form of system tweaking known as curve-fitting.

I'd rather just be trading then wait for a, then b, then c, then d.

As many times there is no c, or there is no d.

Or guess what, even if it completes there is no guarantee the pattern will react the way it "should" each and everytime.

Same as just about any other technique really.

Many easier ways to trade without the wait.

What dailyfx is calling ABCD is a well established zig-zag corrective wave pattern guideline of the Elliott Wave Principle. If the article's subject interests you then have a look at elliottwave.com for sure.

Right on. This so called market is nothing but a game. To win, first thing you need to know is to know who your opponent is. You need to understand his strengths and weaknesses. His biggest stregth is the amount of capital he command. You have to anticipate his moves to defeat you. Just like in game of Chess. Small trader is fighting big traders who is playing with OPM and a lot of it. They can take the price anywhere they want to, to defeat you. Charts and technical analysis is all history and does not tell you their next move. When you can figure out what they have to do to make a profit for themselves, you can join the winning side.

Free Lesson - market makes a HH with no divergence on high, market pulls back usually to 23.6 fib but could be lower, market turns up makes a dbl top or LH and pulls back again - this where the less educated traders short the uptrend - this pullback equals the same distance as the 1st pullback - use your fib extension tool on the swings and see the 50% extension - when the markets move stops at the 50 % extension you have the ABCD.

You see the setup coming knowing the direction of the trend followed by a double top or lazy M on the highs

It's my opinion pretty much any system can work once you become attuned enough to its strengths and weaknesses and know how to negate them with your market experience and other tools.

All stories......
u must be profitable in the end

Never understood why it isn't stated as CD=AB same as R/R is Reward/Risk and not the other way around.

"trading is the hardest easy money you'll make."

https://www.youtube.com/watch?v=HOaE-d3mkDQ

after the fact it is as easy as abcd, show me a setup before it is done.

Hello everyone,
No trading ABCD or other latters cant be easy and its just one of tools you should have in knowledge.There is no easy way for trading,there is pure work and hard work to gather knowledge of technical principles and create your trading style.

Best Regards,
Petar

Although these sometimes work they are not reliable and the so called fib ratios are complete and utter bull....Having spent a long time looking at these and getting a training course from a so called expert. I can confirm that patterns are a unreliable.

Elliot waves are also a complete fraud, look on any chart and convince yourself. Markets do not develop in 5 waves up and 3 wavesdown. Having got an email from the master of so called elliot wave he was callíng a top in the EURGBP, because it hade made a 5 wave move up. Markets can move in any form 5,7,9,11 waves up.

There is one thing to note and that is daily trend, that is basically it. You then have to know how to survive a correction against you, so that comes down to risk control. Study the market you trade and look how it moves what sort of corrections does it make and you will fly.


Mike Haran

Hey Mike, you re spot on! first rule to newbies is to be very freaking wary of an fx retail broker offering you a profitable forex trading system. HELL'll freeze over 10 times before that happens. Its like a thief teaching you a foolproof method to steal from him. anyway, im having a good laugh all the-same

It amazes me when I visit so many threads on this site (for humor purposes only) how many traders are always talking or looking for levels to counter trend the market. It also amazes me how many post clearly show that many know very little if anything about price action itself, many are looking for knowledge on how to trade a news event.

My # of post on this site is not reflective of my trading experience, I do not come here for trading advice but instead just to see what news events are scheduled for the day and when they are. You must learn to read price action, be successful trading in the direction of the trend before you even consider learning when and how to even consider trading against the trend.

ABCD patterns are very effective if/when you learn how to apply it. Big institution traders do not trade in small lots. For them to make money they need traders on the wrong side of the market so when they hit it with their big size they can scale in to their position by running stops of the less educated traders. The ABCD pattern is a classic institutional trader trap. They run the stops of traders who get in a trend to late (just when institutions are taking profits - your buying the high), then less educated traders think the up trend is reversing and go short, the ABCD pattern will form stops will be hit and the market will make new highs - it happens on a regular basis leaving many traders scratching their heads thinking what did they miss.

Study your charts learn what they are telling you and your trading will improve - understanding and listening to news is not the answer to a traders problems. Many 3rd party software vendors and brokers can give good information but none I have found give you enough to be profitable using their software or knowledge in isolation alone.

So much for my Saturday morning rant - if you are not making money the problem is not the software you are using or the news headline you missed, the reason is you and your lack of knowledge of how the markets work

Good trading

Cannot agree with you more. A primary signal in my system is a cross. It makes for a great entry in non-stagnant markets. I can get in, get out with profit without issue. I seen graphs and systems with 80 components. There is no need to complicate a complicated trade.

Two exceptional books:

Evidence-Based Technical Analysis by Aronson

Mechanical Trading Systems by Weissman

To me there is no trading system that is 100% perfect. One of the best ways to be a successful trader is to learn from your mistakes. Anytime you make losses jot them down and study why you lost on the trade. I bet you will see your trading getter by the day.

No system is 100 percent, but a system is important, nonetheless. To have no system at all would be to place random trades and hoping for the best.

I believe that it could be "...As Simple As MACD". I prefer my own drawn S/R lines to Fibs.