Once again our focus was on so called ‘reverse’ ABC trades, or rABCs. The pickings were slim on a slow day as we attempted to force entry in several vehicles, including futures contracts and some high-priced stocks. Since this type of trade requires the use of a buy- or sell-stop to get long/short, we used the lesser charts to determine whether trades that looked like winners actually would have been stopped out on the first or second try. The rABC pattern continues to show excellent potential for delivering profitable trades on days when there would seem to be little to do.
