I assume targeting the high of the B leg would be the safest bet but how do you distinguish how long to hold? I'm assuming it depends on multiple factors but anything in particular? Like a previous or current day high, VWAP, a certain EMA, etc, anything like that?
You can make a backtesting with the concept of "harmonic retracement", which says that the legs would be approximately same distance. Lets say the A leg is something around 10 points, once B leg is over you can enter and aim for a 10 point upward move. It works generally but ofcourse backtesting is always important@@DriftEntry101
@@DriftEntry101 it could any number of things but your exit will ultimately be determined by price action (or if you're into indicators, a chandelier type stop etc) but remember when you do look for these trades, leg A has to take out the previous high and leg B cannot take out the previous low this is the most basic trend trade. higher highs and higher lows...otherwise its not a trend trade. thats all ABCD trades are
@@DriftEntry101 You wait for a horizontal consolidation and then enter once it's broken. Some important points include post and premarket highs and lows.
Every time I watch smb capitals videos I always learn something new. I heard Jeff say something in a video I watched and I applied it to my trading its helped me alot and completely changed the way I trade! Thanks Jeff and SMB im truly greatful!
You can also draw the bottom trendline as well, sometimes it also bounces up from that. Whats great about this is that you can set your stop loss very tight, if it breaks the bottom trendline you get out, while the reward potential is at least the top of the last green candle.
This works equally well for index futures, but i only trade mid market session ie from 30 min after open and i dont trade the last hour of the cash market
I am curious what your strike rate data looks like when using a break out entry at the "turn" versus a stop entry covering the entire pullback (leg B), as I can imagine some false breaks on leg B could cause some L's - would be curious to know
I have traded this method it works great, for me personally is like a 35% win, you just got to be disiplined keeping the stop loss tight and prepare mentally to handle the drawdown
35% win would be pretty tough to handle for me personally. Have you tried tweaking it or having some other confluence factors? Higher time frame, etc.. Ty
@@RommyAli my sample was over 4 months and little more than 200 trades all in real time, the key for me was winning 3 times as much risk.. i risked 300 to make 1000 on NQ on a tick chart and i found hard to have consecutive days stopped out, which was also key to maitain the risk reward in control, because i could not take 2 stops a day. So emotionally taking a hit and closing the computer was challenging but necessary, i ended up swimg trading as i found it more suitable for my mental enviroment 👍but the system is profitable is just very hard to not overtrade you have to keep emotions in check and respect your plan 100%
@@RommyAliwell depends how you look at it. Imagine you put 1 Lot on the trade with a tight stop, something like 3-5pips. You lost 65% of the time but the other 35 it runs for like 25-50pips. It could be a huge edge in the playbook.
you should only take the setup if the high of leg takes out a previous high whether its a continuation or change in trend and the b leg cannot take out the previous low. then you shouldn't have to be in the market very long and your win rate will go way up
Made over 5k this week buying a heavily shorted stock multiple times that had good news come out. On every pullback, almost a given shorts would exit pushing the stock pips higher.
If you’re scalping on 1 minute candle sticks. Closing the entire position is probably best. And look for more scalping opportunities… Some people close portions of their positions and move their stop losses to break even or the previous candle low/high of their trade… in general when scalping your trades will generally last anywhere from like 10 seconds to a couple hours… imo
If trading were as simple as finding a picture perfect (only on RUclips) pullback/trend continuation, I wouldn’t have found this video because I’d be somewhere bathing in millions…
I think it’s a good way to look at it but honestly I just got on the 1 minute chart and scanned through for a while and I did not see any set ups like that at all? Am I missing something
half at the break of high from leg A and then the other half when momentum slows. Hard to condense everything into 1 min video. This short clip is part of our new scalping program we are putting together
@@roberthamlin6638 Just curious what would my stop loss and take profit be looking like? ive been trying all sorts of things for two years and im in a bit of a sputter really would like a consistent 60[40 winner
this is a very specific scalp strategy so it's going to work much better on a 1 min vs 3-5min. We are looking for that strong move up followed by controlled retracement then break back higher
Everyone is scalping leaving orders left unfilled untill it's no longer worth buying. Long terms are all peaked out every time you go to buy and don't see a +% till over a month... I learned stock market from video games. Trends and what I learned is all the same, but god damn the time frame is different. 1 minute in game equates to 1 entire lifetime. Not to mention the % fluctuation is miniscule in real stocks... If you need me, I'll be charging double and playing gta5
@@danielhoward4566 on a 1 min time frame how many times you can think you have spotted the pattern and maybe buying into a resistance. yes stop looks great but on 1 min i for sure can see this time after time.
@@theboycm1 I agree that it isn't the best pattern to trade but the video says it is the easiest. (Probably the easiest to spot) ;-) I wouldn't trade this, I don't like it when a stock is selling off like this no matter "how controlled" the pullback looks.
this is a very specific scalp trade. If the exact criteria isn't met you don't take the trade. It won't setup often but when it does, the probabilities are high which is what you want
I literally look for this move all the time on stocks that have my setups and it works almost every time along with the stocks in play criteria
I assume targeting the high of the B leg would be the safest bet but how do you distinguish how long to hold? I'm assuming it depends on multiple factors but anything in particular? Like a previous or current day high, VWAP, a certain EMA, etc, anything like that?
You can make a backtesting with the concept of "harmonic retracement", which says that the legs would be approximately same distance. Lets say the A leg is something around 10 points, once B leg is over you can enter and aim for a 10 point upward move. It works generally but ofcourse backtesting is always important@@DriftEntry101
@@DriftEntry101 it could any number of things but your exit will ultimately be determined by price action (or if you're into indicators, a chandelier type stop etc)
but remember when you do look for these trades, leg A has to take out the previous high and leg B cannot take out the previous low
this is the most basic trend trade. higher highs and higher lows...otherwise its not a trend trade. thats all ABCD trades are
@@DriftEntry101 You wait for a horizontal consolidation and then enter once it's broken. Some important points include post and premarket highs and lows.
@@RowdyLpx ? I was talking about exit, not entry
Pretty much what I trade. Controlled pullback is really important. MA confluence, and a macro reason to trend.
Super cool , the fact that the absence of wicks on candles confirm that there is no buying doesn't mean there is selling coming in
Superb piece of knowledge . Thanks
Thanks for the visual!
Every time I watch smb capitals videos I always learn something new. I heard Jeff say something in a video I watched and I applied it to my trading its helped me alot and completely changed the way I trade! Thanks Jeff and SMB im truly greatful!
60% of the time, this works every time.
60 an enormous edge
Beauty. What a way to explain it
This was awesome
Nice clip Jeff, thanks!
nice and clear explanation of an ABCD pattern, SMB is quality
Thanks priceless content.keep it comming.
will do!
You can also draw the bottom trendline as well, sometimes it also bounces up from that. Whats great about this is that you can set your stop loss very tight, if it breaks the bottom trendline you get out, while the reward potential is at least the top of the last green candle.
This works equally well for index futures, but i only trade mid market session ie from 30 min after open and i dont trade the last hour of the cash market
Same here. Most volatile periods
Great video.Would luv to see more on scalping?Bull flag?
Superb 😊😊
I am curious what your strike rate data looks like when using a break out entry at the "turn" versus a stop entry covering the entire pullback (leg B), as I can imagine some false breaks on leg B could cause some L's - would be curious to know
I have traded this method it works great, for me personally is like a 35% win, you just got to be disiplined keeping the stop loss tight and prepare mentally to handle the drawdown
35% win would be pretty tough to handle for me personally. Have you tried tweaking it or having some other confluence factors? Higher time frame, etc..
Ty
@@RommyAli my sample was over 4 months and little more than 200 trades all in real time, the key for me was winning 3 times as much risk.. i risked 300 to make 1000 on NQ on a tick chart and i found hard to have consecutive days stopped out, which was also key to maitain the risk reward in control, because i could not take 2 stops a day. So emotionally taking a hit and closing the computer was challenging but necessary, i ended up swimg trading as i found it more suitable for my mental enviroment 👍but the system is profitable is just very hard to not overtrade you have to keep emotions in check and respect your plan 100%
And the RR ratio? How you taking profits? Trailing or at a fixed target area?
@@RommyAliwell depends how you look at it. Imagine you put 1 Lot on the trade with a tight stop, something like 3-5pips. You lost 65% of the time but the other 35 it runs for like 25-50pips. It could be a huge edge in the playbook.
you should only take the setup if the high of leg takes out a previous high whether its a continuation or change in trend and the b leg cannot take out the previous low.
then you shouldn't have to be in the market very long and your win rate will go way up
Omg 😱 love it!!
Thank you
Super power🔥
lol.. this is perfect for when you catch the 1 time a month this actually happens.
On the 1 minute chart? Really?
@@Eli-zg3tj yeah this happens daily. not the same magnitude or market. but it happens all the time...i dunno what theyre talking about LOL
Is it this the same as doing a elliot waves analysis and doing an entry in the second wave ( that is supposed to be a trend) or am i seeing it wrong?
Good short. I have been noticing a lot of descending/ascending triangles lately.
This is a long lmao jk.
in otherwards a bull flag lol and it holds even more weight if it flags down into a demand or support level, holds then breaks the flag. money baby
Loosing trading will drop negative comments. Winners will backtest and see if it works for them
I say let the first green break the high of the previous red for entry and the low of the red for your stop, IMO
Does this work in the reverse?
Jeff is a stud
haha
Made over 5k this week buying a heavily shorted stock multiple times that had good news come out. On every pullback, almost a given shorts would exit pushing the stock pips higher.
Looking for rules in chaos, IMHO
❤❤👍👍👍
Do you sell the profit amount, or the entire position, or does it depend?
If you’re scalping on 1 minute candle sticks. Closing the entire position is probably best. And look for more scalping opportunities… Some people close portions of their positions and move their stop losses to break even or the previous candle low/high of their trade… in general when scalping your trades will generally last anywhere from like 10 seconds to a couple hours… imo
🔥🔥🔥
What is the exit strategy for this play
If trading were as simple as finding a picture perfect (only on RUclips) pullback/trend continuation, I wouldn’t have found this video because I’d be somewhere bathing in millions…
I think it’s a good way to look at it but honestly I just got on the 1 minute chart and scanned through for a while and I did not see any set ups like that at all? Am I missing something
Nice explanation..
Well that worked perfect today at 9:39 am for es …. Thank you
nice Tom!
This bread and butter right here on 1min timeframe
Is this part of your written trade plan?
Does it work on any timeframe? Or
Same approach for Heiken Ashi candles?
Whys the red candle starting from middle?
I have the problem with this kind of video, we don't know which time frame it's better to identify caddlе
What’s the target?
What does the "buy program" mean here? Is that algos buying? If so, why does that buy program stop for the retracement?
Probably short-term traders taking profits,..rinse n repeat
Power hour description 😂
You should explain how to look for stocks with this movement first.
How about the risk?
Where should we be taking profits at?!?!?
half at the break of high from leg A and then the other half when momentum slows. Hard to condense everything into 1 min video. This short clip is part of our new scalping program we are putting together
1:1 risk to reward minimum
Can you please tell me the time range of the candlesticks?
6 days
@@tuna3875 ?
These are 1 min candle sticks and the best time for this trade is post AM session or midday
W
On what time frames have you backtested On?
One minute. I’ve been trading seven years and it works!
@@roberthamlin6638 Just curious what would my stop loss and take profit be looking like? ive been trying all sorts of things for two years and im in a bit of a sputter really would like a consistent 60[40 winner
How often would one say they could anticipate to see this type of action in the market?
Daily
Can you use this strategy on a 3min or 5min timeframe aswell?
this is a very specific scalp strategy so it's going to work much better on a 1 min vs 3-5min. We are looking for that strong move up followed by controlled retracement then break back higher
@@smbcapital Thank you for the response
Hi, can i use this strategy on forex as well, thank you for the help you are offering to us new to trading
Can this be applied to a higher timeframe?
Yes it’s all fractal
Nah..just buy in from the previous low and let her run thru a shallow break down…on the return what until past second down turn and sell out
A noob tries this & gets stopped out on the 2nd push towards A during the retracement. 😂😭
AB=CD setup.
Man, you made a simple monkey proof video with eight green candle, but you ve been able to call it 7candles 4 times.
too much staring an multiple charts and assets to find one potential about to go. It's rare to time them when 1-minute bars
1 minute chart?
Or 5 minutes of up trend , at least in this case
Elliot wave theory on the 5 minute chart.... NO!
😂
If you were making money with this strategy, you would try to become a full-time trader, not a full-time RUclipsr.😊
hes the head prop trader at a SMB capital nerd. Just because he makes a youtube video doesnt make him a youtuber.
He's explaining a bunch of BS😅
I'd wait for the new high as well. A clean 1-2-3 pattern. Or A-B-C... I think that is safer actually.
1min bar is way too short,5 mins are better
This has to be a joke 😂😂😂😂 good luck”looking for this”
Now you know enough to know nothing about why you are still losing money 💰 😢
Everyone is scalping leaving orders left unfilled untill it's no longer worth buying. Long terms are all peaked out every time you go to buy and don't see a +% till over a month...
I learned stock market from video games. Trends and what I learned is all the same, but god damn the time frame is different.
1 minute in game equates to 1 entire lifetime.
Not to mention the % fluctuation is miniscule in real stocks...
If you need me, I'll be charging double and playing gta5
Absolutely ridiculous . How often is this gonna happen ?
Every single day, multiple times per day
@@swooopg i guess you're willing to stay glued to a one minute chart and wait for that set up . have you tried it ?
@@socawarrior1263 no I trade off higher time frames, but it does happen
Looks like a sure way to overtrade
Why do you say that?
@@danielhoward4566 on a 1 min time frame how many times you can think you have spotted the pattern and maybe buying into a resistance. yes stop looks great but on 1 min i for sure can see this time after time.
@@theboycm1 I agree that it isn't the best pattern to trade but the video says it is the easiest. (Probably the easiest to spot) ;-) I wouldn't trade this, I don't like it when a stock is selling off like this no matter "how controlled" the pullback looks.
this is a very specific scalp trade. If the exact criteria isn't met you don't take the trade. It won't setup often but when it does, the probabilities are high which is what you want
That’s horrible advice lol nice editing AI
Something similar for short side?