Whatever market you’re looking at: E-mini, NASDAQ, currencies, etc., each exhibits general patterns of activity throughout the day. You will notice there are periods of fast and slow activity that occur around similar times every day. In some cases, you can divide the day into three segments: A, B, and C. In the following video, you’ll learn how to recognize the ABC Method or ABC Pattern. When there’s a breakout after a segment, you can place a trade.
With the E-mini, you can divide the day into three segments beginning at 9:30 a.m. US/Eastern. We start at 9:30 a.m. because that is the traditional time the market is considered to open. From 9:30 a.m. to noon, that is segment A. From noon to 2:30 p.m., that is segment B. From 2:30 p.m. to 4 p.m., that is segment C. Note segment C is shorter in duration than the others. Look for two consecutive candles closing above or below each segment. That is the entry point.
In the video, you will see the ABC Software in use for NinjaTrader. The software plots the entry points easily. Currently, you can get the software by purchasing the ATO 2 course and software or enrolling in our eight-week Mentorship Program.
hello
I watched your ABC video today and from what I gather you would basically not take trades until after 2:30PM EST? you would first wait for A and B session to end? Am I understanding that right? if so that would probably work out perfectly for me as I dont like to spend a whole lot of time staring at charts and when I do I over trade
thanks
Tom
Hi Tom,
If you are referring to EST time zone, the A part of the day ends at 12pm EST, which is the first 2.5 hours after the session opens. Immediately after the B part of the day begins and you can start looking for the breakout. The A part of the day starts it off, and we look for the B part of the day to break it. The same relationship needs to occur when you compare the B part of the day to the C part of the day. If you are international, adjust your time zone, for any market you want to try this with. The ABC software is included with Mentorship.