anyway back in May to illustrate
how low risk of a buy that pullback was:
1. You had an ABC 3-wave pullback
2. that pullback was into the 61.8%
Fib
you had two important technical events
lining up at the same spot - again very low risk when you have
multiple things, NOT just one thing like a stock pattern or
trendline - a very good textbook pattern many times is good enough
for an objective low risk trade, but when you have other technical
factors confirming or lining up, makes it higher
probability
A VERY high probability trading system
would be buying abc pullbacks into the 61.8% Fib or 50 day or 200
day MA - however your only problem might be finding enough setups
to trade - if one could write a scan for those conditions maybe
more of those show up than we know of, if that's the only setups
you took, you would kick butt with very tight stops risk as
well
BAC beat nicely today also educational post on that ABC pullback
Posted by matt on 14th of Jul 2026 at 10:08 am
BAC - Bank Of America Corp. - Chart Linkbeat earnings, big move. Banks are loving funding all the AI BS LOL
anyway back in May to illustrate how low risk of a buy that pullback was:
1. You had an ABC 3-wave pullback
2. that pullback was into the 61.8% Fib
you had two important technical events lining up at the same spot - again very low risk when you have multiple things, NOT just one thing like a stock pattern or trendline - a very good textbook pattern many times is good enough for an objective low risk trade, but when you have other technical factors confirming or lining up, makes it higher probability
A VERY high probability trading system would be buying abc pullbacks into the 61.8% Fib or 50 day or 200 day MA - however your only problem might be finding enough setups to trade - if one could write a scan for those conditions maybe more of those show up than we know of, if that's the only setups you took, you would kick butt with very tight stops risk as well
ABC
Posted by Soldtoosoon on 14th of Jul 2026 at 11:15 am
Nice Matt! Good lesson. Surely with AI there can be a scan for these setups?