In this video I explain how the simplest a-b-c fractal lets traders make accurate forecast about high probability reversal levels of both, trending and corrective price moves. In my previous video: “Live Trading Room: ES mini goes to 3,100 and beyond” I explained how to find clusters of projections that may stop the rally. I came up with two numbers, 3,100 and 3,130. Both worked as resistance and after testing those levels ES produced corrective waves.

New Youtube video: "How to forecast and trade ES mini futures using a simple a-b-c micro fractal"

In this video I show potential path for a corrective wave ( iv ) down. Please like this video and subscribe to my youtube channel. It may be funny for you but those likes and new subscriptions is what makes me spend hours on recording and editing new videos. On average it takes me 5 – 6 hours to create slides, record, edit and post a video!

How to use a simple a-b-c fractal to find resistance levels for reversal of a strong rally in subwave ( c ) of wave ( iii ) up

To nail high probability reversal levels for the wave ( c ) of ( iii ) I focused on a micro a-b-c fractal of the final wave v of ( c ) of ( iii ). I used two tools. First, extensions of subwave a of v. And, second, I count micro five waves inside the subwave c of v. When the structure got completed and the price almost tagged 223.6% extension I added up trend line to confirm completion of the top with a breakdown under that trendline.

Micro structure of subwave ( a ) of wave ( iv ) down

How to use the same simple a-b-c fractal to forecast and trade a corrective wave ( iv ) down

Now I am using the very same principle to navigate my subscribers through that corrective stage in the market, wave ( iv ) down. A corrective wave ( iv ) down is subdivided into three subwaves, ( a ) down, ( b ) up and ( c ) down. The first leg down in subwave ( a ) was structured as another micro a-b-c.

Subwave ( b ) always gives traders hard time

Very often subwave ( b ) follows the same a-b-c fractal. Sometimes it gets shaped as a combination of several a-b-c. In this particular case subwave ( b ) up in ES mini chose to follow a triangle structure. As you can see below, a triangle is a flat consolidation where five subwaves labelled as -a-b-c-d-e- keep bouncing in between of two converging trend lines. When the final subwave -e gets completed price starts the final subwave ( c ) of the corrective wave ( iv ) .