ABC Pressure Points

Last modified 15:16, 5 Nov 2012

sitmicon34.gifThis content is provided in support of the Safety in the Market (SITM) module for Your SOFTWARE and may not be applicable to your package. For more information, go to the Modules topic of this help.

ABC Pressure Points

The ABC Pressure Points tool allows you to manually create ABC points which do not strictly conform to ABC trading parameters. This allows you to override the automatic action of the ABC Long or Short Hi-Lite tools and identify and analyze ABC trades which may not strictly meet the ABC criteria, but which may in fact offer good trading prospects.

Pressure Points, also known as milestones, are extremely important to anyone trading using the ABC trading technique. The ABC Pressure Points tool allows you to readily identify and study milestones of a proposed trade by selecting your own Reference Range (A to B) and point C using the more significant tops and bottoms of a given chart.

For example, you may have a Double Top pattern with several smaller daily swings between the Double Tops. You can ignore the smaller swings and consider the lowest low between the Double Tops as a point B, and the second of the Tops as point C. The ABC Pressure Points tool will enable you to then quickly bring up the important milestones for this proposed trade, allowing you to assess the possibility of an entry.

Note - User defined ABC Pressure Points created using this drawing tool normally do not comply with ABC trading rules.

For more information on the ABC trading rules, refer to the Smarter Starter Pack (3rd Edition) and The No.1 Trading Plan (3rd Edition).

Only use the ABC Points - Long or Short Hi-Lite to identify ABC trading rule compliant ABC formations.

Using the ABC Pressure Point tool

Select the ABC Pressure Points from the Access Panel or Drawing Tools palette.

The cursor will turn into the Pressure Points cursor: abcprspntcursor.gif

Use the cursor to first select the interval for point A. Each interval will change to blue as the cursor moves over it, single left mouse-click to position the abcprspntaicon.gif icon on a selected interval. The icon will snap to the top or bottom of the interval, depending on whether the cursor is above or below its current price level.

Next use the cursor to position point B. Once again, each interval will change to blue as the cursor moves over it, single left mouse-click to position the abcprspntbicon.gif icon on a selected interval. The price level at which point B is selected will determine whether a Long or Short ABC analysis is applied. If point B is above the price level of A, the abcprspntaicon.gif icon will snap to the low point for its interval and the abcprspntbicon.gif icon on the high of its interval. The reverse will occur if point B is below the price level of A.

abcprspntb.gif  abcprspntc.gif

Next use the cursor to position point C. Once again, each interval will change to blue as the cursor moves over it, single left mouse-click to position the abcprspntcicon.gif icon on a selected interval. The C icon will snap to the Low of the interval for a Long analysis, and the High of the interval for a Short.

The standard pressure point lines will appear as soon as point C is selected.

abcprspntlines.gif

The number of lines displayed (all 10 are displayed by default), as well as the appearance of the lines and font, can be adjusted in the ABC Pressure Points Properties dialog box, see below.
Use the Settings tab in the ABC Pressure Points Properties dialog box to manually adjust the position and value of the A, B and C points.

ABC Pressure Point pop-up menu

Select one of the Pressure Point icons or the lines, and right mouse-click.

The ABC Pressure Points pop-up menu will appear:

abcprspntpopupswug.png

ABC Pressure Point Properties

Select the first command button to open the ABC Pressure Points Properties dialog box. Users can manually adjust the ABC points' dates and values as well as alter the appearance of the lines and numbers.

See the ABC Pressure Points Properties section of this topic, below, for more information.

Details for this Formation

Select Details for this Formation to display ABC Point Details dialog box.

This dialog contains detailed information about the location of the ABC points as well as other relevant points and ranges calculated using them. These levels and ranges are essential for analyzing and managing ABC trades.
This details displayed in the dialog will only refer to one ABC formation at time.

For more information, refer to the ABC Point Details dialog topic.

Cut, Copy, Delete

Select the ABC points or lines and click Copy to copy the ABC array.

With the original array still selected, move the cursor to an interval for a new point A and click Paste to paste a new ABC array.

The Pasted ABC Pressure Points array copies the numbers of intervals between A and B and C and then recalculates the lines on the basis of the price levels found in the new intervals.

Select the ABC points or lines and click Delete to remove them from the price chart.

Lock ABC Pressure Points

Click this button to toggle the Lock/Un-lock function.

ABC Pressure Point Properties

Double-left mouse-click ABC Pressure Point icons or lines, or open the pop-up menu and select the first command to open the ABC Pressure Points Properties dialog box.

The dialog box has four tabbed pages.

Settings tabbed page

The Settings tabbed page allows you to accurately position each of the ABC points' exact date and value.

Display, Appearance, Font tabbed pages

The ABC milestone levels are displayed at fixed levels, but their individual display may be turned on or off by selecting the check-boxes in front of each line's description.

The Appearance and Font tabs allow you to adjust the display or formatting of the lines, location of labels, font, color and other matters of appearance.

Click the Details for this Formation to open the ABC Points Details dialog box summarizing all the ABC trading milestones and data.

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