Escolar Documentos
Profissional Documentos
Cultura Documentos
MAI N
800 465 4373
TOLLFREE
fx360.com
WEB
The Bullish ABCD Pattern
What is it?
A leading indicator that may help determine where and when to enter a long positon,
or exit a sell positon
A visual, geometric price/tme patern comprised of three consecutve price swings,
or trendsit resembles a lightning bolt on a price chart
Refects the common, rhythmic style in which the market ofen moves
Why is it important?
Helps identfy buying opportunites in nearly any market for almost any tmeframe
All other bullish Fibonacci paterns are based on (include) the bullish ABCD patern
Highest-probability trade entry may be at the completon of the patern (buy at point D)
Retracement followed by an extension suggests a higher probability for another
retracement to occur
Helps to determine risk vs. reward prior to placing a trade
May provide a stronger trade signal when it converges with other paterns within
the same tmeframe or across multple tmeframes
Sounds good So how do I fnd it?
Each turning point (A, B, C, and D) represents a signifcant high or signifcant low on a price
chart. These points defne three consecutve price swings, or trends, which make up each of
the three patern legs. These are referred to as the AB leg, the BC leg, and the CD leg.
Trading is not an exact science, so really there are three diferent types of ABCD buy paterns. There are key Fibonacci rato relatonships to
look for in the proportons between AB and CD, ofering an approximate range of where and when the ABCD patern may complete. This is
why converging paterns help increase probabilites and allow traders to more accurately determine entries and exits.
ABCD BUY
ABCD BUY
ABCD BUY
ABCD BUY
(convergence)
ABCD BUY
(convergence)
A D
A
A
C
C A
C
C
C A
C
C
C
B
B
B
B
B
B
B
D
D
D A
D B
D A
D
D D
D A
A
A
B
B
B
C
C
C
D A
Source: GFT