This is a more recent demonstration of one of the free trading techniques – the ABC Pattern mentioned on the DTTW trading videos page. You can trade this ABC strategy on stocks, commodities, forex, and other markets. On the given day, price was trending – heading in a steady direction. If you can know in advance with reasonable certainty if price is likely to head higher or lower at a given time, you can position yourself to make profit. The ABC pattern splits the day into three segments – morning (A), early afternoon (B) and late afternoon (C). By referencing what price did in the A part of the day, you can get an idea of what will occur in the B part of the day. The same holds true for B and C. Each part has its own characteristics. At market open in the A part (9:30 a.m. to 12:00 p.m.), automated systems, swing traders and large financial institutions create volatility. In part B (12:00 p.m. to 2:30 p.m.), have an expectation that the market will slow down. At the C part of the day (2:30 p.m. to 4:30 p.m.), expect a late day rally or sell-off. Watch the video so you know how to draw the breakout lines at the correct price points – lowest low and highest high in A followed by two consecutive closes above or below the range you’ve defined in A. However, this breakout is not likely to happen, as B is less active. Whipsaw price activity – back and forth movement, is more likely to occur. Watch the video for the rules of trading section C, as the rallying or sell-off will likely add volatility / tradability back into the picture.

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