**ABC Trend trading strategy**is a great

**trading tool**!

I enter the position after turn C is finished!

I put

**Stop lose**under point C when trading

**up trend**.

I put

**Stop lose order**above point C when trading

**down trend**.

For

__target__I use

**money managment**

**1:2,1:3.**

If

__target__is not touched and turn B is over, must

__flat the position__.

**1-2-3 trading strategy**is

**breakthrough strategy**. But

**ABC TREND**

__trading strategy__is to

__find entry__into position near

__support__or

__resistance__line by using

__small time-frame__to find

__bounce__.

__Wave__from C to B is the larger and we expect next B to be

__higher high__if it's UP trend.Or

__lower low__if it's down trend.

**Target**could be

__money managment__

**1:2**or

**1:3**, or

__up-trend__

__resistance line__. But if we see that turn B is over and it didn't touch neither

**MM**, or

__up-trend__

__resistance line__then we must

**close the position**no mater what!

It is all visual, there is nothing to

__calculate__!

Compare B1 and B2 in UP TREND (B1 is

**high**but B2 is

**higher high**then B1)

Compare C1 and C2 in UP TREND (C1 is

**low**but C2 is

**higher low**then C1)

*when we have

**UP trend**there is a

**rule**:

*when there is

**DOWN trend**

__rule__is :

If you compare price of B1 related to B2 you will find equation that B1 price is greater ,higher or larger price number then B2 price when we have down trend and it is reverse equation for an UP-trend.

If rule is broken then

__trend is over__! (see larger

__time frame__to get clue what is going on, zoom out)

You can see that

**trend**is all about

**action**and

**reaction**.

Action is larger move then reaction when we have trend!

To find out more about

**predicting action**and

**reaction**you can read topic:" PREDICT REACTION "

To find a spot where

**action**can start you can use

__Fibonacci retracements__!

When you

__draw a line__always start to draw a line from

**A**and recline to

**C1**.

That would be

__slow trend line__!

Then

__draw a line__from

**C1**and recline to

**C2**. That would be

__faster trend line__.

Next

__draw a line__from

**C2**and recline to

**C3**. That would be

__even faster trend line__, etc.

If it is

__UP trend__then those lines would be called

__trend support lines__and if it is

__DOWN trend__then

those lines would be called

__trend resistance lines__.

Every

__trend__has

__four phases__so I recommend to read topic "TREND BEHAVIOR"

Turn C is called

**MOF**!

**MOF Definition**is

**M**oney

**O**n the

**F**loor.

The lowest risk is on C2 turn!

You can use

**indicators**for

__confirmation__only!

You can use

**stochastic**for

__crossover__in area

**20**and

**80**just to

__confirm reversal__, but first you must wait

for

**price**to come into

**sector of rotation**. Further you can use

**MACD**for

**divergence**as

__early sign__of

**trend ending**. Then you can use

**exponential moving average**to see

**average price**in

__the market trend__, and

**Bollinger Bands**for

**volatility**.

I think that this would be enough because it ain't good if you complicate to much.

**Sector of rotation**is place where

**price on the market**will turn in the

**other direction**(

__change the course__)!

ABC trading analysis EXAMPLE! on .