Apex Pattern Markets very seldom move in straight lines. To help see what is going on, DM came up with the Apex Pattern. A is for Alert–start of Pattern and time to pay attention. P is for Pivot- Expect market to move toward the A level. E is for Entry- Entry anywhere from 1 to 3 ticks break of E bar. The reason this is important is that it confirm direction. That is why we wait until after E bar closes. X is complete of Apex Pattern. X is break of Hi/Low level of A by 1 tick. Now, the market can continue on OR start the Apex Pattern over again. Now the Powerline. The P Hi (for short) OR Low (for Long). This is for COMPLETE Apex patterns–NOT pattern in progress. You will see a thin Red line for Apex Shorts OR green tin line for Apex Long. The reason this is important is because IF the Market is going to Flip for Long to Short (or vice versa) the Market will give you a heads up prior to starting in the other trend direction. The heads up is when a Complete Apex Pattern is made above OR below the Powerline. Above Powerline if going to Long trend and Below Powerline (Upside down Apex Pattern) if going short. A bar can be on the Powerline and still flip as long as bar does not close other side of the Powerline. This heads up is important because this 1st Apex for a new trend is small AND the trend is not confirmed yet. This is the reason for rule to wait for 2nd E bar to close. Then new trend is confirmed. Entry off of close of E bar. Next, general rule. When have A that is with Trend (Green A or RED A) you are looking mostly for a scalp. A to P=Scalp, Now we have VAD A to tell us scalp or trend. Old School Rule is you want 2 bars between A to P to take an E entry. The reason was mostly for Risk to Reward as we expect the Market to move at least to the break of the A bar. Above for Long or below for a short. For Apex E entries you want break of Bar + (or -) 1 to 3 ticks. This confirms that direction is set for upcoming market direction. The knowledge of Apex Pattern still applies and helps with heads-up information. Maybe right away or I have seen a full week for YM. One last item to go over. Another heads up feature of Apex Pattern.
The BMX. The BMX stands for Barely Missed X. This is when the Apex Pattern comes close to completing the Patten but does not. Just remember 5 ticks for 10 tick bars. We should be using 3-4 ticks for 8 tick bars. When the Pattern comes close to completing, but does not complete, opposing forces are stronger and taking over the market. You can expect a choppy market OR watch the Powerline for an Apex Trend Flip. Old school was no trades until something happens. With VAD A we can look for scalps. Do not expect much more than that. Next, general rule. When have an A that is with Trend (Green A or RED A) you are looking mostly for a scalp. A to P=Scalp, Now we have VAD A to tell us scalp or trend. Old School Rule is you want 2 bars between A to P to take an E entry. Now you know what I know. That is as simple as I can explain it.
Diagram of Apex flipping from long to short.
