Saturday, August 13, 2011

My Favorite Scalping Trade Patterns 08/13/11




My favorite scalping trade pattern is the A-B-C Wave pattern. I find that you will find these most often in the high volume, high volatility period of the morning session. The perfect setup is when you get a 50% correction of the short term trend, and then a continuation of the short term trend with the B-C Wave traveling as far as the first A Wave. You also want to see the TICK indicator correct to the 200 - 800 area in down trends and to the -200 - -800 area in up trends for a good place to enter the trade. It takes practice in a fast market. There will always be times when you enter too soon or wait too long to enter and miss the trade. However, these trades are usually high probability. Just make sure that you know if you are in a short term up or down trend.

Charles

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