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ABC Method by John Paul

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No part of this work may be reported, copied, or transmitted
in any form or by any means (electronic, mechanical, etc.) without the prior
written permission of the author.

Printed in the United States of America.

The charts herein were generated using


the NinjaTrader trading platform: https://ninjatrader.com.

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Disclaimer

CFTC Rule 4.41: Hypothetical or Simulated performance results have certain limitations, unlike an actual
performance record, simulated results do not represent actual trading. Also, since the trades have not
been executed, the results may have under-or-over compensated for the impact, if any, of certain market
factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that
they are designed with the benefit of hindsight. No representation is being made that any account will or
is likely to achieve profit or losses similar to those shown.

Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An
investor could potentially lose all or more than the initial investment. Risk capital is money that can be
lost without jeopardizing ones' financial security or life style. Only risk capital should be used for trading
and only those with sufficient risk capital should consider trading. Past performance is not necessarily
indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent


limitations, some of which are described herein. No representation is being made that any account will or
is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences
between hypothetical performance results and the actual results subsequently achieved by any particular
trading program. One of the limitations of hypothetical performance results is that they are generally
prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk,
and no hypothetical trading record can completely account for the impact of financial risk of actual
trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite
of trading losses are material points which can also adversely affect actual trading results. There are
numerous other factors related to the markets in general or to the implementation of any specific trading
program which cannot be fully accounted for in the preparation of hypothetical performance results and
all which can adversely affect trading results.

Trade Results Disclosure: All trades presented are not traded in a live account and should be considered
hypothetical.

Trade/Training Room Disclosure: Presentations are for educational purposes only and the opinions
expressed are those of the presenter only. All trades presented should be considered hypothetical and
should not be expected to be replicated in a live trading account.

Testimonial Disclosure: Testimonials appearing on this website may not be representative of other
clients or customers and is not a guarantee of future performance or success.

See additional risk and disclosure information at https://daytradetowin.com/risk.

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TABLE OF CONTENTS

FOREWARD ...................................................................................................................... 5
CHAPTER 1 ....................................................................................................................... 8
1.1 ABC Intro .................................................................................................................. 8
1.2 Getting Started Right ............................................................................................ 10
1.3 Tools of the Trade .................................................................................................. 10
1.4 What to Expect ....................................................................................................... 12
1.5 What NOT to Expect ............................................................................................. 14
1.6 What Are Your Goals? .......................................................................................... 14
CHAPTER 2 ..................................................................................................................... 15
2.1 Choosing Your Trading Platform ....................................................................... 15
2.2 Introduction to the SuperDOM (Price Ladder) ................................................ 16
2.3 Automate Your Profits & Stops ........................................................................... 19
2.4 Additional Resources & Training ....................................................................... 22
CHAPTER 3 ..................................................................................................................... 23
3.1 Price Action Explained ......................................................................................... 23
3.2 Candles or Bars? .................................................................................................... 24
3.3 What Markets to Trade? ....................................................................................... 25
3.4 Don't Fall in Love With One Market .................................................................. 27
3.5 Placing Orders ....................................................................................................... 28
3.6 More on the SuperDOM ....................................................................................... 30
CHAPTER 4 ..................................................................................................................... 33
4.1 Day Session & Time Zones .................................................................................. 33
4.2 ABC Chart Setup ................................................................................................... 36
4.3 Trending Markets Identified – How to Enter ................................................... 43

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4.4 Late-day Rally/Sell-off .......................................................................................... 46
4.5 Support & Resistance Secrets – How to Enter .................................................. 51
4.6 After-hours/London Trading Session ................................................................ 54
4.7 Final Words ............................................................................................................ 58
4.8 Disclaimers ............................................................................................................. 60

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FOREWARD

I have been trading for many years. Some years ago, I concluded that successful
trading is neither easy nor common. My experience helping people has further
confirmed this. If it was easy to be a profitable trader, far more people would be
in this line of work.

Long-term trading, intraday trading, swing trading—or whatever style of


trading you do—is part skill, part art, part discipline, and ultimately based on
price action. Price action is how the market "decides" to move. Your response or
lack thereof determines your success as a trader.

Is it possible to be a successful trader? Yes. Is it possible to make a living trading


or day trading futures or currencies? Yes. However, to enable your success, I also
believe you must use the correct tools.

What you'll learn in this manual is a specific technique that's based entirely on
price action. The ABC Method's patterns are not based on conventional
indicators. To aid your finding of these opportunities, you will be applying
drawing tools, such as horizontal and vertical lines, to your charts. Most charting
platforms allow you to add these drawing tools quickly, by the way.

This guide explains the ABC Method with full objectivity, including entries,
stops, and trade management. You can use the ABC Method as a standalone
system or in conjunction with your own trading strategies.

Traders throughout the world use the ABC Method on different markets and on
different trading sessions such as the London and Asian sessions.

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Generally, successful trading involves focusing on what's in front of you, which,
when the time comes, may include:

• Specific price signals; e.g. long or short


• Identifying trends
• Scalp trading for quick "in and out" trades
• Filtering trades for use with other methods
• Understanding support and resistance
• Trade management, including stops and targets
• Understanding current conditions with the use of the ATR

But even after you learn any of our trading method, you must remember to
practice first—before risking any of your money! I cannot stress enough the
importance of starting off with paper (real-time simulation) trading.

You can use demo mode or simulation mode if your trading platform offers it
(most do), and once you are ready to begin trading earnestly, your outcome
should be better.

We offer a free trading simulator for practice with live data:

https://daytradetowin.com/paper-trading-simulator

Before you begin using any trading strategy, make you have established a strong
foundation of trading basics. Regardless of your experience with other trading
software and skill level, take time to learn the features of the trading platform
you'll be using (e.g. NinjaTrader). We don't want you to click the wrong button
or make a rash decision in the heat of the moment. Rather, experience and
practice will allow you to flow comfortably and seamlessly through your trading
platform.

If you would like to learn more about day trading, including learning how to
scalp trade the markets, trade the open, or go even further in becoming a trading
pro, visit our website:

https://daytradetowin.com

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Regularly, we provide free trading videos focused on price action trading. We
also have an entire section dedicated to support and common how-to scenarios.
Be sure to visit our downloads page that contains free content.

For those of you who want to learn as much as possible as soon as possible, we
offer an 8-Week Mentorship Program that includes all the courses and software.
Mentorship guides you into becoming a professional day trader.

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CHAPTER 1

1.1 ABC Intro


1.2 Getting Started Right
1.3 Tools of the Trade
1.4 What to Expect
1.5 What NOT to Expect
1.6 What Are Your Goals?

1.1 ABC Intro


The ABC Method is based on price action. You don't need any type of indicator
to find the ABC pattern. Most trading methods take on properties based on re-
hashed moving averages or similar popular indicators.

The ABC method does not. The idea of using the price, the time, and objective
rules to understand how to enter and exit the market is the foundation of price
action trading. What about adding a bit of MACD or stochastics? There is no
need. We are just using price action! Even when we apply the ATR (Average
True Range) using a period value of four to determine the profit target and stop
loss, we are still using price action.

Yes, the ABC Software does exist. It is included with the 8-Week Mentorship
Program offered at DayTradeToWin.com. The ABC Software plots entry signals
and shaded regions on the chart. However, the ABC Method you'll soon be
learning here can be traded manually.

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So, what the heck is the ABC Method, you may ask? Well, the answer is easy.
Essentially, we are looking at each trading session, day or night, and identifying
how the session is unfolding.

Is the market trending? Is the day trading in a tight range? Is there a late-day
rally or sell-off? Is it even worth trading as the condition may be risky and not
worth trading?

These are the questions I intend to answer in this course. You will have a clear
understanding of where to enter and exit each trade.

You will also understand the market's direction, long or short, or even when the
market has no direction to speak of.

When it comes to picking a market to trade, the possibilities are endless,


especially now that cryptocurrencies are so popular.

Start with a market you can easily identify with. My recommendation is to start
with a futures market such as the E-mini S&P or something similar like Nasdaq,
Dow, and even the micro versions like the Micro E-mini S&P.

Of course, you are welcome to experiment with currencies, forex, crypto, and
stocks.

The rules for different markets will be similar if not the same. Not all markets
have the same trading hours and start times, so pay attention to the start times of
the markets you trade.

How about trading after-hours or overnight?

Yes, the rules and the ABC Method work the same way. Later on, you’ll see
charts for the London session.

Price and time make up the signals, the trade management, and the functionality
of what you see plotting on the chart. Focus on price and time. The best trades
will present themselves.

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1.2 Getting Started Right
If you are going to day trade—or are already doing so—then, by all means, let's
do it right! Some of you reading this course may be new to trading or have been
trading for some time. Maybe through experience you have come to learn that
successful trading is not so easy. I hope those mistakes have served you well
from a learning perspective.

My goal here is to start you off fresh using price action—even if you have been
around the block, tossed in the gutter, and forced to crawl back to your
computer.

All is not lost, and for the newbies in the trading world, listen up and learn from
the old-timers who have made these same mistakes on more than one occasion.

To start off right, view your trading education as something that is meant to
last—as if it's your primary and only business. Treat it as such by creating a
professional and calm home or office environment. Find a space without
distractions where you can concentrate on the task at hand.

1.3 Tools of the Trade


Without the proper tools, we cannot achieve our goals. Most traders already
have the following tools to begin trading successfully, but a quick review of
what's needed is listed below for those new traders starting fresh.

1. A computer. Get yourself a good computer! It's a good time to buy; prices
are low, and deals are everywhere. If you intend to make good money,
lose the old laptop and grab yourself a newer machine. Get a computer
with an SSD (solid state drive) and at least 8 G.B. of RAM. I can't live
without my multiple monitor setups, but if all you're doing is scalping the
markets, then one monitor will do.

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2. Don't forget a reliable battery backup in case of a power interruption.

3. Reliable, high-speed internet. You won't need the fastest internet access.
At present, the average download speed in the U.S. is 10 Mbps. That's
plenty good for our style of trading. What is more important is that your
internet is stable—there's no package loss or regular outages. Wi-Fi should
be fine, but if you are sharing internet with your family and they're
streaming various video services, your performance could be impacted. In
that case, consider upgrading your internet speed, Wi-Fi router hardware,
or installed a dedicated connection just for trading.

4. A trading platform. A trading platform is the software you use for trading.
It contains the charts and the trading dome where trades are placed. It also
receives the market data that is displayed on the charts. You have a variety
of options when it comes to your trading platform or software. I prefer
NinjaTrader. In my experience, as a teacher, my students have said after
spending some time with it, it's easy to get the hang of. There are plenty of
other platforms out there. Remember, price action can be traded on any
charting software.

5. A designated place to work. This is as important as any other tool. As


mentioned earlier, you should have a home office or at least a desk in a
quiet area. You need a peaceful place where you and all of your trading
tools can work together in uninterrupted harmony.

6. Access to a financial calendar for news events and reports released to the
public. See https://daytradetowin.com/trading-news.

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If you aren't using our special DayTradeToWin News Indicator (available
with certain courses) to display news events on your charts, use the link
from the previous page to access an online trading calendar.

It's wise to be well-prepared for upcoming news events before they


happen. We need to know when financial reports are released to the
public. I recommend new traders wait a minimum of ten minutes after a
high-priority news report has been released. After some practice and
experience, you will understand that trading through news events is a
wild card.

7. A complete trading system or method, such as the ABC Method offered in


this course. Other trading methods such as the Trade Scalper, Atlas Line,
or your own method to trade can offer additional trading signals. Let's not
blindly trade. Instead, let's use the right balance of quality signals and
common sense before jumping into any trade. Traders new and
experienced should focus primarily on price action with a set of guided
rules.

1.4 What to Expect


Please be aware of your intentions and expectations when you're starting
anything new, especially when it comes to trading the markets.

Your intention is probably to make money. But how much, how quickly? By all
means, you can have intentions to manifest abundant wealth in your life. But,
should you experience some losses early in the process of learning, will that
deter you from pushing forward? This is why you may want to take a reasonable
approach and be patient with yourself, especially during the learning process.

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Your trading expectations should be realistic. Will you be a millionaire by the
end of next week? No, but if you have the ability to trade 200 contracts on each
trade, and all goes according to plan, you may achieve that goal sooner rather
than later.

Your expectations should be relevant to many factors: your account size, number
of contracts traded, and trading frequency. Here are some general expectations
that should be set before you start trading with any method, including the ABC
Method, Trade Scalper, or Atlas Line:

• Wait for the best trades. Avoid overtrading. Thus, limit the total number of
trades for ALL strategies you trade to 2–6 per day.

• Depending on your time zone, you can trade the evening U.S. session.

• Market conditions dictate the profit target and risk/stop loss.

• Trailing stops are great and are best suited for trending days.

• Using the primary entry (or signal if using the ABC Software), refer to the
ATR to determine the profit target.

• You should expect to trade the method on multiple markets, not just the E-
mini, currencies, or other financials.

• Be diversified. Look for opportunities across multiple markets


simultaneously.

• Considering limiting further trades for the day once your profit objective
has been reached.

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1.5 What NOT to Expect
When trading, what not to expect is just as important as what to expect. What not
to expect from the ABC Method is also relevant to your account size, trading
frequency, and the number of lots (contracts) traded.

You should not expect:

• A winning trade 100% the time. This is unreasonable and is never going to
happen with any system or model. Some trades will be huge winners but
expect small wins, break-evens, and occasional losses to occur.

• To become rich beyond your wildest dreams within days.

• For trading to be an immediate replacement for a standard occupation or


career. Again, perfect practice makes perfect.

1.6 What Are Your Goals?


To end this section, I would like to discuss goals for a moment. Goals are
something everyone should have in trading—and in life. Think about your goals
as a trader. Think about what you want from trading and how to accomplish
those goals.

Practice trading with the intention to accomplish those goals. Continuing your
trading education is essential. Learn what works and what doesn't. Combine
new methods: use them as filters to help rule out or confirm potential trades.
Regardless of your experience level, there is always something new to learn.

The ABC Method can be traded every day. If you have different goals, such as
trading just once per day as taught via the ATO 2 course, then stick to that goal.
If your goal is to scalp the markets daily for $100 daily or $500 using the Trade

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Scalper, don't deviate from that goal. Start slow and grow as you gain
experience.

Again, you should be realistic in your goal-setting and have your intention(s)
goal(s) established before trading or sitting down in front of your computer.
Many traders will start with unrealistic goals. Another mistake, at least in my
opinion, is to change goals to unrealistic, greedy levels after finding some
success.

CHAPTER 2

2.1 Choosing Your Trading Platform


2.2 Introduction to the SuperDOM (Price Ladder)
2.3 Automate Your Profits & Stops
2.4 Additional Resources & Training

2.1 Choosing Your Trading Platform


I'm going to keep this section short and simple. Here, the focus is not the charting
platform in its entire scope. Rather, the focus is the ABC Method and how it fits
into the trading platform.

NinjaTrader offers a great and useful feature called Chart Trader. Using Chart
Trader, you can place trades directly on the chart without having to use a
separate SuperDOM window aka price ladder.

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Using Chart Trader, entry and exit orders can be moved around on the chart
itself by clicking and dragging the green and red order visuals. This allows you
to confirm order placement and monitor activity in real-time.

As price moves, we can actually click on the order and drag it near the current
price. As soon as the price touches the order, we want to click once, and the fill is
hit.

Another nifty tip is that you actually can place orders by right-clicking on the
chart. With your sim account, try it and see what options are available and how
you like it.

If you're using a platform other than NinjaTrader, look for similar futures. Most
platforms have some sort of price ladder.

2.2 Introduction to the SuperDOM (Price Ladder)


The SuperDOM, DOM, or price ladder, is part of any good trading platform
(see Figure 1 & 2 on the following pages). In NinjaTrader, use the SuperDOM
(Dynamic) option.

In the center, price of the instrument (aka market) is continually moving up and
down. We can get a sense of actual trades being filled in real-time—the quotes on
the DOM move in conjunction with the price on the chart. You should set up
your screen to include the DOM directly next to the trading chart, side-by-side.

In the DOM, be sure to select the instrument. Otherwise, nothing will be


happening on the DOM. Also, be sure that instrument selected in the DOM
matches the instrument selected in your chart. Otherwise, that's a big mismatch.

The DOM consists of three columns. The current price is displayed in the center
column. The Buy and Sell columns are situated on either side of the price
column. The left column is the DOM's "buy side." The right column is the DOM's
"sell side."

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When placing orders, limit, or market, you will use the left buy-side to go long
("buy the market"). You would place an order to enter the market, anticipating an
up ("bullish") move. The buy column is also used to exit a short (sell) position
and either take profit or a stop.

Similarly, the right sell-side is for going short ("selling the market"). You would
place an order to enter the market, anticipating a down ("bearish") move. The sell
column is also used to exit a long (buy) position and either take profit or a stop.
In other words, after placing a sell trade, exiting the trade requires placing a buy
order on the opposite (left/buy side).

If the above sounds confusing, you will soon learn how to use the ATM Strategy
feature which automates the placement of the profit target and stop loss.

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Figure 1: SuperDOM (Dynamic)

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2.3 Automate Your Profits & Stops
The lower portion of the DOM is what I call a "revolution in electronic trading."
NinjaTrader, along with other trading platforms, now offers a way to automate
your entries and exits. This feature is called "ATM Strategy." As you can see, I
have created a custom ATM Strategy (see Figure 2's "P8S16").

The ATM Strategy allows you to automate your exits by having the trading
platform (in this case, NinjaTrader) execute them for you. You would configure
the number of ticks on the profit side and the number of tics on the stop-loss side
you want the trade to execute. As soon as you place a trade long or short into the
market, the opposite side of the trade is placed for you automatically.

An example would work like this:

You have already configured the ATM Strategy by inputting the number of ticks
in profit and the number of ticks in stop that you want to take on each trade.
You place the trade long or short, either on the chart or on the dome. Within
seconds of being filled on your entry into the market, your profit targets and
stops are placed for you on the exchanges. This now saves you from having to
place those exit trades yourself manually.

Electronic markets are first come, first served. Thus, you are placed in line to be
filled. Now, do you understand why it's so important to be first in line when
exiting or placing trades? Your Limit or MIT orders are placed for you. The ATM
Strategy feature can help you get ahead of the pack in this regard.

In the future, I recommend that you create multiple strategies in a format


similar to the "P8S16" example in Figure 2. This way, in the heat of the moment,
you can pull from your holster the most suitable strategy for current market
conditions. Relax for now—in time with some practice and experience, you'll
have a sense of common profit targets and stop losses, and thus, what you
should configure for various strategies within ATM Strategy.

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Another way to place trades is by clicking, dragging, and modifying entries and
exits directly on the DOM. Other trading software may have similar tools. Other
platforms, such as TradeStation or TradingView, should offer similar
functionality.

On the following page, Figure 2 provides an example of the DOM and ATM
Strategy hard at work. As always, you should practice trading in
demo/sim/paper mode before going live with real money.

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My stop loss. For this trade,
we don’t want to see that
yellow price (current price)
to come up here.

My entry price (notice the


gold background).

In yellow, you will always


see the current price. It’s
0.25 points, or 1 tick below
my entry, thus the 0.25 of
profit you see below in
green text.
This is my profit target.
Because it’s below the entry
price, you can tell I am
“going short” on this trade,
expecting price to go lower.

My current profit of 0.25


points or 1 tick. That would
be $12.50 for the E-mini
with one contract (not a
whole lot of money – this is a
demonstration!)
The ATM Strategy currently
in use. I saved this custom
strategy as “P8S16” so I can
easily and quickly recognize
the profit target is 8 ticks
Figure 2: SuperDOM Dynamic (Explained)
and the stop loss is 16 ticks.

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2.4 Additional Resources & Training
We will soon be moving on to learn the specifics of the ABC Method. However,
some of you reading this will not be totally familiar with using NinjaTrader,
charts, and many trading concepts.

For a broader and free education, I have put together a variety of helpful
resources for you to use. Please take full advantage of them and may they help
guide you on your trading journey.

If you've already purchased one of our trading methods such as the Trade
Scalper, ATO 2, Atlas Line, or 8-Week Mentorship, you can find a collection of
helpful videos on the Member Home page. You should have been provided a
link to the Member Home page with your purchase.

Alternatively, you can find some of the same content via these links:

• Free Get Started Trading Guide (PDF)


• NinjaTrader 8 Crash Course (video)
• NinjaTrader 8 SuperDOM Use & Order Placement 1 (video)
• NinjaTrader 8 SuperDOM Use & Order Placement 2 (video)
• Common day trading support questions and help
• Order Types Explained

On a regular basis, we share public demonstration videos and educational


content on our blog, located at https://daytradetowin.com/blog.

Also, NinjaTrader provides free learning resources, webinars, and support for
their platform. Visit https://ninjatrader.com/PlatformTraining for details. Their
support email is platformsupport@ninjatrader.com. If you have a question
regarding your connection with NinjaTrader or trading account, contacting your
broker may be best.

When learning, please have patience with yourself and take time to practice.

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CHAPTER 3

3.1 Price Action Explained


3.2 Candles or Bars?
3.3 What Markets to Trade?
3.4 Don't Fall in Love With One Market
3.5 Placing Orders
3.6 More on the SuperDOM/Price Ladder

3.1 Price Action Explained


The term price action is kicked around so much—but what does it really mean? I
am going to further describe price action as I see it. You may already know or
think you know what it means, but my take on price action should be noted here.

I am the kind of trader that follows price and price only. Hence, when I trade, I
only want to look at the exact price plotted on the charts.

The price goes up; the price goes down—price does its seemingly random dance
all day and night. Regardless of what price does, again, I am looking at only the
exact price being plotted on the charts. It doesn't matter if you are looking at 1-
minute, 3-minute, 10-minute, hourly, daily, or tick charts.

Price is the price. Whatever and how-ever the price plotted on the charts, that is
what I watch.

If you like bar charts and have only bar charts on your trading platform, then it's
price action you are watching. If you like candlesticks instead, you are still
watching price action.

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Price action is simply the representation of price and price movement on the
chart. Soon, you will learn how to use price action to identify ABC Method
opportunities.

There are many ways to observe and interpret price action. Some work better
than others. I recommend that you stick to the rules of tried-and-true price action
trading methods.

3.2 Candles or Bars?


Your charts should reflect what makes sense to you and how you like to trade.
You should be happy with how your charts look. I started off my trading career
following bar charts. I then used OHLC for a time. Later, I moved on
candlesticks.

Your choice of price representation, whether candlesticks, OHLC, etc. should


indicate the opening closing values as well as provide an indication of price
"traveled" for the given period. For what you'll be learning here, use what makes
sense to you. If you have already become accustomed to a certain chart style and
wish not to retrain your brain, then don't.

I continue to use candlestick charts. It's not just about the pretty red and green
colors (even though I do admit I like the style). As price flows on the chart, it's
about readability, interpretation, and quick decision-making.

There are names for certain types of candles that appear on candlestick charts.
For instance, shooting stars, hammers, and dojis are just fancy terms to recognize
a candlestick formation. You can call those patterns anything, but more
importantly, they all have one thing in common—they are all forms price action
interpretation.

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3.3 What Markets to Trade?
Choose your market wisely. There is no lack of trading instruments (markets).
Market categories include financials, currencies, crypto, futures, commodities,
derivatives, stocks, and ETFs, for example. So, which to trade?

It's actually not that difficult to determine a good market to trade. Most traders
prefer one with high volume, low commissions, enough movement for intraday
profit potential, liquidity allowing quick entry and exit, and just enough
volatility to make it all manageable. In addition, the market needs to be
accessible within your trading platform of choice.

What tends to meet all the above criteria? The E-mini S&P 500 (E.S.). Yes, we
also have the E-mini Dow (Y.M.), E-mini NASDAQ 100 (N.Q.), and E-mini
Russell 2000 (RTY) available. Somewhat recently, new Micro markets have been
created. Also, crypto trading is now more accessible than before. Take a look at
the Euro Futures (6E), FESX, and FTSE 100 markets as well, especially if you are
trading outside of regular U.S. day session hours. Indeed, there are plenty of
options.

What are currencies? When I say currencies, I am generally referring to what is


also called the forex market. Forex consists of currencies pitched against each
other. It's a valuation of one currency vs. another. Those currencies that include
the USD (U.S. dollar) are usually more liquid. Because the U.S. dollar is such a
ubiquitous financial instrument, many other currencies are pitched against it,
thus you will see many "XXX/USD" currencies, such as EUR/USD. That said,
often times, trading currencies or forex can be like the Wild West. Also, you may
be trading against your broker; a factor you may want to avoid. Futures, like the E-
mini S&P 500, tend to avoid this potential problem.

Again, I prefer the E-mini S&P 500 because I believe it provides a great bang for
the buck.

© 2021 DayTradeToWin.com All rights reserved. Page 25


For trading the ABC Method, I recommend the E-mini S&P 500 (E.S.). If you are
going to trade currencies, stick with futures currencies like *Euro Futures (6E).

I feel it's better to stick with what has been known to work rather than go
treasure hunting for an exotic market on the same paths that are frequently
traveled by other trading explorers with similar goals.

*Futures currencies are regulated and traded in the U.S. Forex, on the other hand,
is unregulated. If you want to trade futures currencies, here are some that I
believe work best (in no particular order):

• U.S. Dollar
• Euro Dollar
• British Pound
• Canadian Dollar
• Australian Dollar
• Japanese Yen
• Swiss Franc

Behind financials, currencies are my second choice for trading. I recommend


picking a few markets to possibly trade. Start by getting your feet wet with real-
time practice. I would not trade all of them at the same time. Once you get the
hang of trading, you will learn the "personality" of each market, how best to
trade it, and what most markets tend to have in common.

© 2021 DayTradeToWin.com All rights reserved. Page 26


3.4 Don't Fall in Love With One Market
Yes, exactly—don't fall in love with any one market! You have a choice. You
should explore a few markets to see if and how they differ from what you
currently trade.

Many traders make the mistake of concentrating only on one market and living
and dying by what occurs in that one market. Branch out. Try to have a few
trading eggs in other baskets. If the market you love so much suddenly changes,
you would find yourself confused and lost. The exchange might impose new
rules on point values or how orders are managed. Some time ago, T-bonds went
through changes that affected how the point value was calculated. If the T-bonds
were all that you knew—and nothing else—then you may find yourself in a
predicament.

If you currently trade the E-mini, I recommend that you try a currency. See the
prior chapter for details. If anything, you will be able to gain the experience and
know-how if ever the E-mini ran into trouble. You should also be aware that at
certain times of the year, the E-mini slows down, and trading becomes more
difficult. An example would be the last week of the year for the financials—not
the best time to trade. In this event, you could switch to currencies until the
financials get back to trading normally.

Remember, the markets work in cycles. If you are trading one market that turns
too slow or too fast to trade, switch to another market. If you have two stops in a
row, the market you are trading may be in a tight chop or whipsawing for the
day. You have options. Look to switch markets or trade multiple markets at the
same time.

© 2021 DayTradeToWin.com All rights reserved. Page 27


3.5 Placing Orders
As a trader, you should be aware of the different order types. Practice placing
trades using the different order types to avoid mistakes when the time comes to
trade live.

Types of orders:

• Limit order – purchase or sell an asset at or below a specified price,


allowing traders to control how much they pay. Left-click the SuperDOM.
Buy limit orders occur below the current price. Sell limit orders occur
above the current price. Limit orders do not incur slippage. They act on a
first-come, first-served order queue. Limit orders can be used for entries
and exits.

• Market order – enter or exit into the market immediately at the current
market price. Market orders are prone to slippage (i.e. not getting the price
you want), and that's not a good thing. Avoid using when the market has
higher than average volatility. Market orders can be thought of as, "Just get
me in or out regardless of the price."

• Market if touched (MIT) – as soon as price touches the MIT order, the
order becomes a market order. Slippage can occur using MIT orders. MIT
orders are performed by holding Ctrl and left-clicking.

• Stop order – a stop order is an order to buy or sell a security when its price
moves past a particular point. Beyond that price point, stop orders are
converted into market orders that are executed at the best available price.
Slippage is expected to occur. Use the middle mouse button (likely a wheel
on your mouse) to place this type of order in conjunction with the
SuperDOM.

© 2021 DayTradeToWin.com All rights reserved. Page 28


• Stop-limit order – stop-limit orders are a conditional transaction that
combines the features of a stop loss with those of a limit order to mitigate
risk, which enables traders to have precise control over when the order
should be filled. Stop-limit orders are not guaranteed to be executed. Via
the SuperDOM, use the middle mouse button and the Ctrl key to switch
between a stop order and stop-limit order.

We cover order types and placement further in a training video that is made
available within your Member account. If necessary, please review that video. In
addition to our videos on the subject, you may want to view NinjaTrader's
content at https://ninjatrader.com/blog/how-to-use-the-superdom-price-ladder-
for-order-entry/.

Figure 3: Order placement reference from NinjaTrader

© 2021 DayTradeToWin.com All rights reserved. Page 29


3.6 More on the SuperDOM
As I've mentioned already, the SuperDOM, known as a price ladder in other
platforms, allows you to enter and exit trades. It's fully functional and it's the
main interface I use for order placement. The center column is the Price column
(and contains the current price). The left column is the Sell column. The right
column is the Buy column. By default, NinjaTrader's darker color themes
highlight the current price in yellow. Please refer to Figure 2 in Chapter 2.3 to see
the SuperDOM explained visually.

The order types discussed in the prior section are directly placed using a
SuperDOM.

To become familiar with placing orders, you should practice in simulation mode
first for a good amount of time.

What you should notice and practice when using the SuperDOM in simulation
mode:

• One-click order entry for fast entry into the market.


• Confirm order box to avoid mistakes and accept the order being placed.
• The SuperDOM uses different colors for different order types
• MIT orders are light green
• Limit orders are light blue
• Stop and stop-limit are red and pink, respectively
• Click and drag orders to smoothly adjust your profit target and stop loss
• Adjust the number of contracts before placing an order
• Adjust the number of contracts before placing an order
• Cancel pending orders by clicking the "X"
• Cancel all orders, current and pending, by clicking the Close button
• View the number of contracts waiting to be filled alongside each price
point (this is called Level II data, by the way)
• Quickly switch instruments from E-mini (E.S.) to Micro E-mini (MES) to
Dow (Y.M.)

© 2021 DayTradeToWin.com All rights reserved. Page 30


• Open multiple SuperDOMs and set each to use a different instrument that
corresponds to a separate chart

Figure 4: Various orders using SuperDOM. This image is also from


NinjaTrader's website.

© 2021 DayTradeToWin.com All rights reserved. Page 31


Figure 5: Quickly adjust orders to new prices by (1) clicking on the colored
order, (2) the cursor becomes a hand, indicating you can now drop the order at
a new price. Want to adjust the number of contracts? Click the number near
the "X."

© 2021 DayTradeToWin.com All rights reserved. Page 32


CHAPTER 4

4.1 Day Session & Time Zones


4.2 ABC Chart Setup
4.3 Trending Markets Identified – How to Enter
4.4 Late-day Rally/Sell-off
4.5 Support & Resistance Secrets – How to Enter
4.6 After-hours/London Trading Session
4.7 Final Words
4.8 Disclaimers

4.1 Day Session & Time Zones


In setting up your charts, I want you to start fresh—that means a clean chart with
no indicators or special settings. All the chart examples I will be using were
created via NinjaTrader charting platform.

If you are using TradeStation, TradingView, or any other charting platform, the
same settings are used, the data shown should be identical, and the trading rules
are executed the same way.

1. Identify the start time of the trading session. The start of the trading
session is also known as “market open.” The market open time can vary
among instruments.

Another way to find the market open time is to look for the Day Session
Start Time. These terms are interchangeable.

© 2021 DayTradeToWin.com All rights reserved. Page 33


An iconic example most traders are familiar with is the opening bell for the
stock exchange, widely reported as the start of the Dow Jones Day Session.

2. Markets that trade 24 hours also have a day session start time. In fact,
you can even say they have two session start times: the day session and the
Globex after-hours session. We are only focusing on the day session start
time for the ABC Method calculation.

Volatility is almost always higher during the day session. We require the
market to be at its most active to identify trends and opportunities for the
ABC Method. The after-hours, or Globex session, is often slower with little
movement which makes it difficult to trade.

3. Pay close attention to your time zone. Your time zone dictates the market
open time locally for you. In the following examples, I will use “EST” to
represent US/Eastern Standard Time. Keep in mind, if you are in the U.S.,
depending on the time of year, EDT (US/Eastern Daylight Time) may
apply. A global list of time zone abbreviations is here:
https://www.timeanddate.com/time/zones/.

As an example, think of a trader who lives in New York. She resides in the
EST time zone. For her, the E-mini S&P, the day session begins at 9:30 a.m.

Another trader who lives in Chicago experiences the US/Central time zone,
which is an hour “behind” US/Eastern. Thus, this trader’s market open is
8:30 a.m. locally.

Traders living in California, US/Pacific, experience a time zone that is three


hours behind US/Eastern. Instead of 9:30 a.m., 6:30 a.m. local time is the
start of the day session.

© 2021 DayTradeToWin.com All rights reserved. Page 34


Across the pond in London, someone who wants to trade the E-mini day
session can do so at a local market open time of 2:30 p.m. (14:30 in 24-hour
or military time).

Because seasonal U.S. time changes do not match time changes observed
elsewhere in the world, if you are outside of the U.S., you may want to use
a time zone converter to determine what your local time is relative to
US/Eastern time. Note: if you use our ABC Software, you will need to
input the market open time in local time (24-hour format).

Anyway, to get to the point, your job is to know the day session start time
for the markets you intend to trade based in your local time zone.

Figure 6: Day session market open for the E-mini S&P in US/Eastern time.

© 2021 DayTradeToWin.com All rights reserved. Page 35


4.2 ABC Chart Setup
After identifying the market open start time, let's continue setting up the ABC
method by dividing the trading session into three sections: A, B, and C. Instead
of sections, you can call them parts, segments, periods, or whatever you prefer.

The rules you are about to learn are the same for different markets. However,
some adjustments may be necessary for markets with fewer trading hours as
compared to the E-mini.

Part A: begins at market open, duration: 2.5 hours

For most markets, Part A begins at market open is consists of the first 2.5 hours
of the trading day. This A section is important because it often contains greater
volume, news releases, and large up and down moves (volatility).

During Par A, day traders, swing traders, and position traders begin adding
positions. They push the market with big money activity.

If needed, scroll back over multiple days with an Average True Range (ATR)
indicator applied to the chart. The ATR should display spikes corresponding to
the sizes of the bars/candles. This is how the ATR further confirms the high
volatility often observed in the A Section.

Part A defines important support and resistance. This support and resistance are
outlined by the highest high price and lowest low price within the first 2.5 hours.

1. Using a 1-minute or 5-minute chart, add a vertical line to the chart at the
market open time. For example, if your computer time is set to US/Eastern,
place a vertical line at the 09:30 time on your chart.

2. Add another vertical line to the chart 2.5 hours later. If you are US/Eastern,
this would be 12:00 p.m.

© 2021 DayTradeToWin.com All rights reserved. Page 36


3. Identify resistance by adding a horizontal line at the highest high price for
Part A. Include the start and ending candles if they contain the highest
high price.

4. Identify support by adding a horizontal line at the lowest low price for
Part A. Include the start and ending candles if they contain the lowest low
price.

Stuck? Take a look at Figure 7 on the following page.

By the way, if you cannot find the horizontal and vertical line tools in
NinjaTrader, look for the pencil icon at the top of the chart. Memorize the
keyboard shortcuts if you’d like.

© 2021 DayTradeToWin.com All rights reserved. Page 37


Figure 7: Part A is identified via a 2.5-hour period containing the highest high
and lowest low.

© 2021 DayTradeToWin.com All rights reserved. Page 38


In Figure 7, you may notice the highest high price is the 12:00 p.m. EST candle.

Part A creates an important range that we use as we enter Part B. Take a moment
to imagine that the support and resistance defined in Part A are major hurdles
the market could break in Part B. If within Part B, price breaks out of Part A’s
support and resistance range, we consider the day to be a “trending day.”

On the contrary, days that are choppy/whipsaw or range-bound typically stay


within the high/low aka support/resistance range of A throughout the entire day
session.

Part B: begins 2.5 hours after market open; duration: 2.5 hours

Part B is the “middle portion” of the trading session. It consists of the next 2.5
hours starting at the end of section A. For those in US/Eastern trading the E-mini,
the B session ends at 14:30 p.m.

B tends to be slower than A and is also known as “lunchtime trading.” The


expectation for B:

1. Slower trading and less volatility


2. ATR is smaller
3. Choppy, whipsaw movement without consistent direction
4. “Normal day” activity constitutes 80% movement contained within A
range
5. “Trending day” activity constitutes 20% movement beyond A range

Part B is important because we use it as a predictive tool to help determine how


the remainder of the trading session will unfold. Will the market trend up or
down? Will it chop or will a trend continue in Part C?

In other words, while in Part B, we use A’s range to help identify opportunities.
More on that in a later chapter. For now, we’re just focused on identifying the
highest high and lowest low ranges for reach section.

© 2021 DayTradeToWin.com All rights reserved. Page 39


The following examples show Part B for the E-min S&P. Remember to adjust for
your time zone if depending on your computer’s local time and the market open
time for the market you’re trading.

Figure 8: Part B is identified using a similar approach as with Part A.

© 2021 DayTradeToWin.com All rights reserved. Page 40


Part C: begins 5 hours after market open; duration: 1 hour, 45 min.

Part C is the final portion of the trading session. It consists of a smaller time
frame. For the financials and the E-mini S&P, the next hour and 45 minutes make
up Part C. C begins where B left off and runs until the end of the session.

Part C tends to be slower than A, but there are some advantages. The expectation
for C:

1. Slower trading and less volatility as the session ends


2. ATR is smaller
3. News events occur, such as the FOMC during the day trading session.
such as FOMC in Choppy, whipsaw movement without direction
4. A late-day rally or sell-off could occur
5. “Normal activity” constitutes 80% movement contained within B range
6. A late-day rally or sell-off constitutes 20% movement beyond B range as
the session ends

In Part C, if price breaks through the highest high or lowest low of Part C, you
may soon be looking at an entry opportunity. Again, more on that later.
However, under normal conditions, the market fizzles out into the close unless
news or other profit earnings information is released, thereby causing the late-
day rally/breakout to occur.

In the next chapter, you will learn how to enter the market based on the
breakouts. You will also gain a greater understanding of support and resistance.

The following examples show the E-mini S&P’s Part C. Again, remember to
adjust for your time zone if depending on your computer’s local time and the
market open time for the market you’re trading.

© 2021 DayTradeToWin.com All rights reserved. Page 41


Figure 9: Here, we identify Part C.
See how it's done for all three sections, now?

© 2021 DayTradeToWin.com All rights reserved. Page 42


4.3 Trending Markets Identified – How to Enter
As the day unfolds and we outline each part of the day using the A-B-C range
rules, the goal is to compare the current part of the day to the last and
understand the interrelationship.

Part creates big moves based on volatility. By the way, trading the Atlas Line,
ATO 2, or Trade Scalper is a good way to take advantage of these moves.

According to the ABC Method rules, there are no entry opportunities in Part A.
The entry opportunities occur in parts B and C.

After Part A concludes, Part B becomes the focus for the first entry opportunity.
Now, Part B.

Here, in Part B, we know that one of two things will occur.

1. Price will continue up or down beyond A’s range/zone


…OR…
2. Price will be contained within A’s range/zone

As such, these two situations allow us to use the following price action rules to
objectively identify price action opportunities based on clear, objective rules.

Trending Market Rules

As soon as Part B begins, we use the A’s range to determine if price is continuing
to push beyond the high or low of A’s range. If there is a push, this indicates a
TREND is forming.

• The B entry (when you place a trade/order) is based on two consecutive


candles closing above or below A’s range. The rules are the same on 5-
minute and 1-minute charts.
• Place the buy or sell order as soon as the second A-range-breaking
bar/candle closes.

© 2021 DayTradeToWin.com All rights reserved. Page 43


• The two consecutive candles can be bullish, bearish, or dojis. They just
need to be consecutively closing above or below A’s range.
• The two candles referenced as a breakout should occur at the beginning of
the B range, indicating the overwhelming demand for buyers pushing
above the high range of A or sellers pushing the market lower beyond the
range of A.
• If a breakout occurs after 1.5+ hours into B, the trend is not strong and
should be avoided.

After entering the market as a buyer or seller, the following rules should be used
for trade management, including stops and targets.

Remember that your ATR indicator should be configured using a period value of
4. This means the last four bars/candles are used to calculate the current ATR
value.

1. Exit and take profit after the market makes a profit target of 1x the ATR or
greater. Use an MIT or Limit order.
2. Trail a stop and hold the position until the close. This should allow for
larger profit potential due to the establishing of a trending day.
3. Before the end of the day, trail a stop for 2x to 3x the ATR.
4. Close the trade or apply a “Prove-it Stop” if, after entering, price closes
back within the range of A. This “proves” the trend is not continuing, thus
you should be out of the market.
5. Close the trade or apply a stop loss if the market trades sideways after the
A breakout and does not continue in your favor for a profit at the end of
the B range period.
6. The stop loss should never be larger than 2x the ATR and never be larger
than 5 points (20 ticks). This is called the “Catastrophic Stop” and it is the
last resort.

© 2021 DayTradeToWin.com All rights reserved. Page 44


Next, you will see the ABC Software in action. The software is not required. You
can find the entries yourself manually as described in this course.

Figure 10: Example of a trending day where two consecutive candles close
above A's highest high.

…Remember, the earlier the breakout occurs in B, the better the trade and
“proof” the day is trending!

I have another example for you on the next page.

© 2021 DayTradeToWin.com All rights reserved. Page 45


Guess what’s happening here and then read the orange caption below…

Figure 11: An example of a range-bound day. The market never traded beyond
the range of A. This occurs about 80% of the time.

4.4 Late-day Rally/Sell-off


At this point, you should have a sense of the relationship of Parts A and B. The
relationship between Parts B and C are similar. We’re pretty much doing the
same thing. We’re using the prior range to define breakouts with two
consecutive candles (beyond the highest high or lowest low) to determine the
entry.

Recall that Part B is 2.5 hours in duration. It’s typically slower than A unless
there’s a significant trend in play.

During Part B, you can use the Atlas Line, Trade Scalper, Blueprint or other
methods we teach to take advantage of additional opportunities and filter.

© 2021 DayTradeToWin.com All rights reserved. Page 46


Now, Part C becomes the focus. We know that one of two things will occur.

1. Price will continue up or down beyond B’s range/zone


…OR…
2. Price will be contained within B’s range/zone

As such, these two situations allow us to use the following price action rules to
objectively identify price action opportunities based on clear, objective rules.

Late-day Rally or Sell-off Rules

As soon as Part C begins, see if B’s high or low is being surpassed. If so, there
may be a RALLY or SELL-OFF in effect.

• The C entry (when you place a trade/order) is based on two consecutive


candles closing above or below B’s range. The rules are the same on 5-
minute and 1-minute charts.
• Place the buy or sell order as soon as the second B-range-breaking
bar/candle closes.
• The two consecutive candles can be bullish, bearish, or dojis. They just
need to be consecutively closing above or below B’s range.
• The two candles referenced as a breakout should occur at the beginning of
the C range, indicating the overwhelming demand for buyers pushing
above the high range of B or sellers pushing the market lower beyond the
range of B.
• If a breakout occurs after ONE HOUR into C, the trend is not strong and
should be avoided.

© 2021 DayTradeToWin.com All rights reserved. Page 47


After entering the market as a buyer or seller, the following rules should be used
for trade management, including stops and targets.

Remember that your ATR indicator should be configured using a period value of
4. This means the last four bars/candles are used to calculate the current ATR
value.

1. Exit and take profit after the market makes a profit target of 1x the ATR or
greater. Use an MIT or Limit order.
2. Trail a stop and hold the position until the close. This should allow for
larger profit potential due to the establishing of a trending day.
3. Before the end of the day, trail a stop for 2x to 3x the ATR.
4. Close the trade or apply a “Prove-it Stop” if, after entering, price closes
back within the range of B. This “proves” the trend is not continuing, thus
you should be out of the market.
5. Close the trade or apply a stop loss if the market trades sideways after the
B breakout and does not continue in your favor for a profit at the end of
the C range period.
6. The stop loss should never be larger than 2x the ATR and never be larger
than 5 points (20 ticks). This is called the “Catastrophic Stop” and it is the
last resort.

On the next page, you’ll see another example of the ABC Software in action. You
may easily identify the opportunities yourself by drawing lines or shaded
rectangles. The ABC Software does it automatically and provides Long/Short
signal text with the corresponding entry price.

© 2021 DayTradeToWin.com All rights reserved. Page 48


Below, can you identify the two closing candles beyond C’s highest high? That’s
the entry opportunity. Price Action is indicating to go long.

Figure 12: Late-day rally, which can only occur in Part C which is at the end of
the trading day.

© 2021 DayTradeToWin.com All rights reserved. Page 49


What would you say is the significant of this example?

Figure 13: There was no entry opportunity in Part C because price never closed
twice outside the range of B. Indeed, the day was without any major rally or
sell-off.

© 2021 DayTradeToWin.com All rights reserved. Page 50


4.5 Support & Resistance Secrets – How to Enter
Quite often, you will see how the market bounces off the three parts of the day
outlined by the ABC Method.

Did you notice how the high and low of the A range is tested during Part B?
Knowing this occurs more often than not, we look for an opportunity to allow
the market to trade, test, and bounce off the high and low of Part A while trading
in Part B.

The entries are a little different, but using price action will help guide you…

Support and Resistance Trades

As soon as the Part B begins, use A’s range to determine if the market is
continuing to push beyond A’s high or low OR is instead bouncing off the highs
and lows as if testing A’s range.

• The entry opportunity occurs when one candle closes outside the A range
and the next candle closes back inside the range. In other words, an order
to buy or sell can be placed at the close of the second bar, which closes
back inside the range of A.
• The rules are the same on 5-minute and 1-minute charts.
• The two consecutive candles that flip-flop can be bullish, bearish, or doji,
as long as they are consecutively closing outside and then immediately go
back inside the range as if bouncing back.
• The two candles referenced as bouncing off the range of A should occur at
the beginning of the B range and not towards the end of part B.
• The same idea occurs when comparing the range in B to the way the
market trades in the C part of the day.
• Support and resistance can be easily identified using this bounce-back
feature when comparing Parts A and B and Parts B and C.

© 2021 DayTradeToWin.com All rights reserved. Page 51


• Remember, only two things can occur: (1) a breakout or (2) trading is
contained within the previously outlined zone.

In Figure 14, notice how the candles in Part B “bounce” off A’s lowest low. One
candle closes below the range of A. The very next candle closes back within A’s
range. Therefore, we can assume the market is testing A’s lowest low and
bouncing back up.

Figure 14: A support signal/trade/opportunity in Part B based on a "bouncing”


off of A's lowest low.

© 2021 DayTradeToWin.com All rights reserved. Page 52


Figure 15: Two more bounce scenarios – one in Part B and the other in Part C.

After entering the market as a buyer or seller, the following rules


should be used for trade management, including stops and targets.

1. Exit and take profit after the market makes a profit target of 1x the ATR or
greater. Use an MIT or Limit order.
2. Trail a stop and hold the position until the close or until reaching the other
side of the range. This should allow for larger profit potential.
3. Before the end of the day, trail a stop for 2x to 3x the ATR.
4. Close the trade or apply a “Prove-it Stop” if, after entering, price closes
outside the previous range. This “proves” the trend is not continuing, thus
you should be out of the market.
5. Close the trade or apply a stop loss if the market trades sideways after
bouncing and does not continue in your favor for a profit.

© 2021 DayTradeToWin.com All rights reserved. Page 53


6. The stop loss should never be larger than 2x the ATR and never be larger
than 5 points (20 ticks). This is called the “Catastrophic Stop” and it is the
last resort.

4.6 After-hours/London Trading Session


When trading the London session, also called the European session or overnight
session in the U.S., a similar approach can be taken. The only difference is that
we are starting the trading session at the start of the London market open, which
happens to be 3:00 a.m. in the US/Eastern time zone.

The ABC Method does not “care” about the session. The rules are the same
regardless of your choice to trade the day U.S. session, the London session, or
even the Asian session.

For every market you want to trade, be sure to check start times, hours traded,
etc. as these times can change and may differ relative your local time zone and
season.

© 2021 DayTradeToWin.com All rights reserved. Page 54


Figure 16: The London session begins at 3:00 a.m. US/Eastern.
We see the ABC Method working here as well.

On the following pages, I have two more London session charts for you.

By the way, the great thing about price action trading is the applicability and
adaptably among various markets. I hope the power of price action has become
evident as you finalize your understanding of the ABC Method.

© 2021 DayTradeToWin.com All rights reserved. Page 55


Figure 17: Late-day rallies also occur in the London session. Part C will always
contain late-day activity. Here, the London session’s Part C begins at 8:00 a.m.
and ends at 9:30 a.m. US/Eastern. That’s just in time for the U.S. day session
where the ABC Method can be used once again! Be sure not to over-trade,
though.

© 2021 DayTradeToWin.com All rights reserved. Page 56


Figure 18: Here is a late-day sell-off during the London session's Part C. Again,
a chart in the US/Eastern time zone is used. As with the other examples in this
course, an E-mini S&P 500 (ES) chart is used. Indeed, you can trade U.S.
markets in accordance with European activity, as European markets often
influence U.S. markets and vice versa.

© 2021 DayTradeToWin.com All rights reserved. Page 57


4.7 Final Words
Thank you for spending time with me learning the ABC Method. Please take
time to practice using real-time and/or market replay data.

I truly hope that your trading greatly improves and you find much prosperity
and abundance in your life.

I have more methods to teach you. All can be found here. you want to learn
everything in one comprehensive package with eight weeks of live training, the
8-Week Mentorship Program is the best choice. I have also placed some clickable
images on the following page.

If you have any questions or comments, please email us at


support@daytradetowin.com.

With gratitude and wishes of success,

John Paul

© 2021 DayTradeToWin.com All rights reserved. Page 58


© 2021 DayTradeToWin.com All rights reserved. Page 59
4.8 Disclaimers
CFTC Rule 4.41: Hypothetical or Simulated performance results have certain
limitations, unlike an actual performance record, simulated results do not
represent actual trading. Also, since the trades have not been executed, the
results may have under-or-over compensated for the impact, if any, of certain
market factors, such as lack of liquidity. Simulated trading programs in general
are also subject to the fact that they are designed with the benefit of hindsight.
No representation is being made that any account will or is likely to achieve
profit or losses similar to those shown.

Risk Disclosure: Futures and forex trading contains substantial risk and is not
for every investor. An investor could potentially lose all or more than the initial
investment. Risk capital is money that can be lost without jeopardizing ones'
financial security or life style. Only risk capital should be used for trading and
only those with sufficient risk capital should consider trading. Past performance
is not necessarily indicative of future results.

Hypothetical Performance Disclosure: Hypothetical performance results have


many inherent limitations, some of which are described herein. No
representation is being made that any account will or is likely to achieve profits
or losses similar to those shown; in fact, there are frequently sharp differences
between hypothetical performance results and the actual results subsequently
achieved by any particular trading program. One of the limitations of
hypothetical performance results is that they are generally prepared with the
benefit of hindsight. In addition, hypothetical trading does not involve financial
risk, and no hypothetical trading record can completely account for the impact of
financial risk of actual trading. For example, the ability to withstand losses or to
adhere to a particular trading program in spite of trading losses are material
points which can also adversely affect actual trading results. There are numerous
other factors related to the markets in general or to the implementation of any
specific trading program which cannot be fully accounted for in the preparation

© 2021 DayTradeToWin.com All rights reserved. Page 60


of hypothetical performance results and all which can adversely affect trading
results.

Trade Results Disclosure: All trades presented are not traded in a live account
and should be considered hypothetical.

Trade/Training Room Disclosure: Presentations are for educational purposes


only and the opinions expressed are those of the presenter only. All trades
presented should be considered hypothetical and should not be expected to be
replicated in a live trading account.

Testimonial Disclosure: Testimonials appearing on this website may not be


representative of other clients or customers and is not a guarantee of future
performance or success.

See additional risk and disclosure information at https://daytradetowin.com/risk.

© 2021 DayTradeToWin.com All rights reserved. Page 61

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