ABC

Patterns
Research
Suri Duddella
www suriNotes com
www.suriNotes.com
Market Technicians Association,
Association Jan.
Jan 18,
18 2012

Trade Chart Patterns Like The Pros

Disclaimer
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tell people, or suggest to people, what they should buy or sell for
themselves. Trading g and investing
g can be a very y dangerous
g venture for
th
there may be
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lt are nott
indicative of future returns. The information provided here is for
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Trade Chart Patterns Like The Pros

Agenda…
• Introduction
– Whyy Pattern Trading?
g
– Patterns Research/Trading
• ABC Patterns
– Construction, Trading Rules
– Perfect ABCs
– Embedded Patterns
• Market Context
• Examples

Trade Chart Patterns Like The Pros

 Introduction
• Education
• 8 years Corporate
8+ C A
America
i E Experience
i
• 15+ Years Full-time Trading Experience
• Quant/Math/Analytical/Programming Skills
• 30+ Articles,
Articles Presentations,
Presentations Book
Book…
• Pattern Trading - TradeStation
• T d Stocks,
Trade: St k Options
O ti andd Futures
F t

Trade Chart Patterns Like The Pros

 My Trading…
• 6-8 Pattern Setups, Embedded & Failed Patterns
• Specific Entries, Stops and Targets
• Trade with the Market Context
– Pivots/Market Structures, Fib. Grid
– Market Internals.. (CMI Indicator)
• $ADV,
$ADV $DECL
$DECL, XLF
XLF, $ESINX,
$ESINX SPY,
SPY $TRIN,
$TRIN $TICK
• Trading
– Stocks/Options (Swing Trading)
• U.S. Markets, ADRs: China/India
– Emini Futures (Intraday).. ES, YM, NQ, Oil, Gold
• Analysis/Trades/Setups are documented/posted on
surinotes.com
i website
b i bboth
h iin EOD and
d real-time
l i

Trade Chart Patterns Like The Pros

www.suriNotes.com
 WHY PATTERN TRADING?

Trade Chart Patterns Like The Pros

Why Pattern Trading?
• Pros:
– Chart Patterns are repeatable and predictive
– Objective methods and has advantage over other
forms of Technical Trading
– Provides clear Entries
Entries, Stops and Targets to show
risk and reward ahead of a trade
– Provides multiple opportunities into trades
– Clues from Embedded patterns
• Cons:
– Difficult to Identify or Code, Perfection may need
longer time experience

Trade Chart Patterns Like The Pros

 My Favorite Patterns
• Harmonic Patterns
– ABC, Symmetry, X5 – Gartley, Butterfly
• Double/Multiple
D bl /M lti l B Bottoms/Tops
tt /T
• Head and Shoulders/Inv. H&S
• Breakouts
B k
– Channels, Triangles, Pennants, Flags
• Broadening/Wolfe Wave/3-Drives Patterns

Trade Chart Patterns Like The Pros

 ABC
Patterns

Trade Chart Patterns Like The Pros

 ABC Patterns
• H.M. Gartley
Gartley’ss Book… A
– Profits in the Stock Market C
• 3-Pivot, 1-2-3 Waves…
• Trend, Retracement, Trend B

• AB & CD (Continuation) D
• AB = CD Pattern formation (Reversal)
• Trade in the Direction of the Trend

Trade Chart Patterns Like The Pros

 ABC Pattern (Bullish)

Trade Chart Patterns Like The Pros

 ABC Pattern (Bearish)

Trade Chart Patterns Like The Pros

 ABC – A Universal Pattern
• Charts always in ABC Pattern
• Beginning of Elliott Wave (0
(0-1-2)
1 2) (2-3-4)
(2 3 4)
• Double Tops/Bottoms
• H d and
Head d Shoulders
Sh ld
• Channels, Flags, Pennants
• G l (ALL X5
Gartley X patterns))
• Dragons
• 3-Drives
• Wolfe-Waves and Broadening Patterns

Trade Chart Patterns Like The Pros

 Embedded Patterns

Trade Chart Patterns Like The Pros

 ABC Discovery (10+ years)
• My journey to discover ABC Patterns,
– ZigZag method.. Serious flaws
– SwingPivots Optimization .. Complex,
Delayed
– Third is Retracement Method… Random
• All above methods have advantages and
disadvantages…
• But the real-answer is in basic
Mathematics + other few methods
Trade Chart Patterns Like The Pros
 Pattern Components
• Orientation
• Size
• Location
• Clarity
• Uniformity
• Trend Strength and Quality
– Before the Pattern formed (0-100 scale)
– Within the Pattern (0-100 scale)
– After the trade entry (0-100 scale)
• Embedded?
• Symmetry?
• Pattern Failure Points

Trade Chart Patterns Like The Pros

 Pattern Trade Components
• Entry Logic & Triggers
• Exits: Stops (Measured, Trailing,
C t t hi )
Catastrophic)
• Exits: Targets
– Measured Moves
– 1 to 3 (Intraday) and Time Based
– 1 to 2 EOD and Time Projections

Trade Chart Patterns Like The Pros

 Auto ABC (TradeStation)
• Auto ABC Pattern detection without any delays
• Any Time-Frame/Chart (Intraday, EOD)
y STOP and Targets
• Provides Entry, g dynamically
y y
without any delays
• Time Projections
• Scans in RadarScreen for Potential ABC Pattern
setups with Trade Info
• Fully customizable

Trade Chart Patterns Like The Pros

 Auto ABC

Trade Chart Patterns Like The Pros

 ABC Scans in RadarScreen
Id tifi
Identifies
Retracement C%,,
#Bars
Entry Stop,
Entry, Stop Targets
Perfect ABC

Trade Chart Patterns Like The Pros

 ABC TYPES

Trade Chart Patterns Like The Pros

 ABC RadarScreen Scans

Trade Chart Patterns Like The Pros

 ABCs in Options

Trade Chart Patterns Like The Pros

 ABCs in Options
p

Trade Chart Patterns Like The Pros

 ABCs in RangeBars

Trade Chart Patterns Like The Pros

 ABC Videos on

YouTube

ID: surinotes

Trade Chart Patterns Like The Pros

 Market Context

Trade Chart Patterns Like The Pros

 Market Context
How ABCs formed relation to the Key levels, Fib. Bands

Intraday:
 Key price Levels: Floor, Globex and OR Pivots
 Fib.
Fib B
Bands,
d K Key supportt andd resistance
i t llevels
l
 ABCs originating or terminating in Fib. Zones

For Daily or Weekly Charts:

 Location of the pattern

 Weekly, Monthly and Yearly Pivots
 Price reaction to the Fib. Bands and MAs

Trade Chart Patterns Like The Pros

 Fib. Grid
• Shows Pattern Support/Res
Support/Res. Structures
• Tools
– Fibonacci
Fib iB
Bands
d
– Pivot Structures (Floor, Globex, Fib. Zone)
– Market Structures
S
– Key Moving Averages
• 21 EMA, 89 EMA, 200 SMA

Trade Chart Patterns Like The Pros

 ABC Bullish with Fib. Bands

Trade Chart Patterns Like The Pros

 Fib. Grid with ABCs

Trade Chart Patterns Like The Pros

 CMI (Combined Market Internals)
• Finds the Underlying
y g Market Direction
• Uses ADV, DECL, TICK, TRIN, XLF,
SPY, ESINX
• Intraday Indicator
• Plots a Histogram on 5m Chart
• CMIRibbon plots 4 key components on
1m Chart (used for Trade Triggers)
• Trade with the 5m CMI direction
• Also used for Divergence

Trade Chart Patterns Like The Pros

 Combined Market Internals (CMI)

Trade Chart Patterns Like The Pros

 CMI (5m)

Trade Chart Patterns Like The Pros

 Perfect ABC Trade Setup

Trade Chart Patterns Like The Pros

 Perfect ABC in S&P 500

Trade Chart Patterns Like The Pros

Perfect ABC in SP500

Trade Chart Patterns Like The Pros

 ABC Bullish (TEVA)

Trade Chart Patterns Like The Pros

 ABC Bullish (TEVA)

Trade Chart Patterns Like The Pros

 ABC Bearish & H&S (INFY)

Trade Chart Patterns Like The Pros

 ABC Bearish & H&S

Trade Chart Patterns Like The Pros

 ABC Bearish & H&S (INFY)

Trade Chart Patterns Like The Pros

 ABC Bullish (@ES Intraday)

Trade Chart Patterns Like The Pros

 ABC Bullish (@ES Intraday)

Trade Chart Patterns Like The Pros

 ABC Bullish (@ES Intraday)

Trade Chart Patterns Like The Pros

Trade Chart Patterns Like The Pros
Trade Chart Patterns Like The Pros
 Embedded Patterns

Trade Chart Patterns Like The Pros

ABC within Elliott Wave

Trade Chart Patterns Like The Pros

EW Trade Example

Trade Chart Patterns Like The Pros

 Symm. Triangle and ABC

Trade Chart Patterns Like The Pros

 Xerox ABC

Trade Chart Patterns Like The Pros

 Xerox Butterfly

Trade Chart Patterns Like The Pros

 Xerox Butterfly

Trade Chart Patterns Like The Pros

 Xerox Butterfly

Trade Chart Patterns Like The Pros

 Inv. H&S and ABC Patterns

Trade Chart Patterns Like The Pros

Book (English & German)

Trade Chart Patterns Like The Pros

Book
300 Pages
8.5” x 11” Book

65 Patterns
225+ Chart Illustrations
Precise Entries/Exits
Specific Targets/Stops

www.surinotes.com
www.surinotes.de

Trade Chart Patterns Like The Pros

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Trade Chart Patterns Like The Pros