On occasion, we’re asked to provide educational videos for traders who are not yet ready to make the leap to purchase a recommended day trading system. Free trading videos that describe an exact trading method can be extremely helpful for beginners. In the video below, John Paul from Day Trade to Win describes an a powerful, yet elementary (pardon the pun) price action method called the ABC Pattern.
By splitting the day into three separate units based on time, the ABC Pattern allows traders to recognize trend patterns. These patterns help predict the direction of price for the current and proceeding section. When price breaks the range of the previous segment, we are provided with a new direction. As mentioned in the video, the beginning (A) part of the day (9:30 a.m. to 12:00 p.m.) is the best for trading because of big player stakes. Most of the time, the following part of the day (B) is usually slow unless it’s one of those rare days where a trend takes hold of the market. Part C can be very interesting as demonstrated by manipulation and placement for the following day. Be prepared for the sell-offs or rallies before the bell rings. Again, watch for the previous segment’s range to break before entering.
Yes, this works for other futures, currencies and commodities.
See how there are no indicators used? The rules are entirely objective. This is exactly how Day Trade to Win’s instruction is based. Of course, the other methods go into much more detail and vary widely in approach (from scalping to recognizing candle pattern setups). Right now, Day Trade to Win is accepting students at reduced admission for its 2012 Mentorship Program (that begins Jan. 5, 2012). You can register for day trading education at any time this month to receive 2011 prices.