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 July 28,
2004 Commentary (mid-week edition)-
Today's
commentary is going to be very simple and straightforward. I'm going to show
two setups from today's ES, and one from yesterday. The ES, NQ, and my recent
favorite, the Russell mini, have really been trading great again lately. The
setups I'll show are so simple, and yet, I feel, so effective, if I were
patient enough I could just wait and trade only these plays. It's a key basis
for my current FX trading. And what are they? You already know. Let's take a
look.
The trend is down, shown by the arrow. An
ABCD pattern comes together, set up to continue the trend. This is one of my
favorite plays, if not my favorite altogether. Let's see what happened.
For a 1-minute chart, that's a nice move with
plenty of profit potential. Let's look later in the day.
Trend is now up, as the arrow indicates. An
ABCD pattern falls into place. I see this over and over and over again. Let's
see what happened.
The trend continues, and a substantial move
ensues right off the pattern. Let's finish with a quick look at the 3-minute
chart from yesterday's ES.
The ES reversed the trend and started up
strongly. Then, what else, an ABCD pattern came together. I showed it here as a
5-point pattern. The trend continued right off the ABCD completion point.
Another substantial move ensued.
I want to point out that I see, and
use, these patterns, as I laid out in Kane Trading on: Trading ABCD
Patterns (I'm not just trading 'any old' ABCD patterns), on all
timeframes, and on every group of issues that I have investigated to date. In
the early days of this website I was asked daily if I felt my methodology
applied to FX trading. Now that I follow the FX more than anything else, I can
say that I feel it works as good, or better, in those issues than anywhere
else.
I'm asked all the time by daytraders if I think my methodology
applies to that timeframe. Well, my ES charts are mostly 3-minute and 1-minute
charts, and they speak for themselves. I have frequently used the material on
various tick charts, and I have found that, for me, it all applies there just
as well. I've applied it from tick charts to monthly charts, from stocks,
bonds, and commodities, to FOREX. As I always say: "I'll trade anything, on any
timeframe, if I can find a setup".
The next commentary will be the weekend
edition, posted Sunday. There is a small chance that I may not be able to post
this weekend. If so, I will try to leave a note here, but if I can't, at least
I made a mention here of the small chance that I may not be able to update.
Regardless, keep trying back if you don't see an update.
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