The XABCD pattern is a popular harmonic chart pattern that helps traders identify potential reversal zones in the market. It uses specific Fibonacci ratios to map out price movements and predict turning points with a high degree of accuracy. These patterns are advanced technical setups that require precise measurements and a strong understanding of Fibonacci retracement and extension levels.
What Is the XABCD Pattern?
The XABCD pattern consists of five key points: X, A, B, C, and D, each representing a specific price level on the chart.
These points form a series of swings that create a geometric shape, such as a triangle or a batwing.
The pattern is validated by the relationships between these points, which adhere to strict Fibonacci ratios.
The XABCD pattern is often classified into different sub-patterns, including Gartley, Butterfly, Bat, Crab, and Shark patterns. Each variation has unique Fibonacci requirements.
Key Components of the XABCD Pattern
Point X to A:
Represents the initial price move, either bullish or bearish.
This is the longest and most distinct swing in the pattern.
Point A to B:
A retracement of the XA leg.
Typically retraces between 38.2% and 61.8% of the XA leg.
Point B to C:
A counter-trend move against the AB leg.
Usually retraces 38.2% to 88.6% of the AB leg.
Point C to D:
The final leg of the pattern, known as the completion leg.
The D point typically represents a Fibonacci extension of the XA leg or a retracement of the AB leg, depending on the specific pattern.
The above is a Gartley Pattern:
Point B retraces 61.8% of XA.
Point D completes at 78.6% retracement of XA.
Highly reliable for predicting reversals in trending markets.
Target Fibonacci extensions at 1.0 and 1.618 of the AD leg for profits.
1 has been hit. The RSI suggests more price movement upwards to come as its not over bought, which leads us to the next target 1.618 Fib extension at around $135,000
What Is the XABCD Pattern?
The XABCD pattern consists of five key points: X, A, B, C, and D, each representing a specific price level on the chart.
These points form a series of swings that create a geometric shape, such as a triangle or a batwing.
The pattern is validated by the relationships between these points, which adhere to strict Fibonacci ratios.
The XABCD pattern is often classified into different sub-patterns, including Gartley, Butterfly, Bat, Crab, and Shark patterns. Each variation has unique Fibonacci requirements.
Key Components of the XABCD Pattern
Point X to A:
Represents the initial price move, either bullish or bearish.
This is the longest and most distinct swing in the pattern.
Point A to B:
A retracement of the XA leg.
Typically retraces between 38.2% and 61.8% of the XA leg.
Point B to C:
A counter-trend move against the AB leg.
Usually retraces 38.2% to 88.6% of the AB leg.
Point C to D:
The final leg of the pattern, known as the completion leg.
The D point typically represents a Fibonacci extension of the XA leg or a retracement of the AB leg, depending on the specific pattern.
The above is a Gartley Pattern:
Point B retraces 61.8% of XA.
Point D completes at 78.6% retracement of XA.
Highly reliable for predicting reversals in trending markets.
Target Fibonacci extensions at 1.0 and 1.618 of the AD leg for profits.
1 has been hit. The RSI suggests more price movement upwards to come as its not over bought, which leads us to the next target 1.618 Fib extension at around $135,000
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.