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Harmonicforex

From A to D:How to Use the ABCD Pattern to Forecast Market MovesAre you familiar with the ABCD trading pattern? In this article, I will provide a comprehensive explanation of the ABCD trading pattern, including its characteristics, how to identify it, and how to use it in trading. So, sit back, relax, and enjoy the information provided in this article. The ABCD ( AB=CD ) pattern , It's a harmonic pattern that is easily recognizable on a price chart and is composed of four points. This pattern follows a specific sequence of market movements that traders can use to predict potential price swings in the future. The ABCD pattern can be applied in various market conditions, including both bullish and bearish markets, and can be used to speculate on the movement of different forex pairs by simultaneously selling one currency and buying another. However, it's important to keep in mind that the ABCD pattern should not be the sole basis for making trading decisions. It should be used as a tool to inform your decisions. The first step in opening a position using the ABCD pattern is to identify the pattern on a price chart. Multiday charts can provide insight into the behavior of forex markets over an extended period. You can use daily, hourly, or minute-by-minute charts to spot the pattern, but it's crucial to choose a time horizon that aligns with your goals. For instance, traders looking to hold positions for days or weeks may prefer daily charts instead of minute charts. Once you have selected the appropriate chart type, you can search for the ABCD pattern to identify bullish or bearish signals. Let's now take a closer look at how the AB=CD pattern forms and how to spot it: When identifying the ABCD pattern, traders focus on the legs or moves between points. The moves in the direction of the overall trend are denoted as AB and CD, while BC represents the retracement. Once you think you have identified an ABCD pattern on a price chart, the next step is to use Fibonacci ratios to validate it. This process can also help you pinpoint where the pattern may complete and where to consider opening your position. The "classic" ABCD pattern follows a specific sequence of market movements, with the following rules: In a "classic" ABCD pattern, the BC line should ideally be 61.8% or 78.6% of AB. To determine this, traders often use the Fibonacci retracement tool on the initial move from point A to point B. The BC line should end at either the 61.8% or 78.6% Fibonacci retracement level of AB. This helps confirm the validity of the ABCD pattern and gives an idea of where to potentially open a position. Once the BC leg of the pattern is complete, traders would typically look for the CD leg to reach the 127.2% or 161.8% extension of the BC leg. At this point, traders might consider entering a sell position if the pattern is bearish or a buy position if the pattern is bullish. The ABCD pattern extension occurs when the CD leg extends beyond the typical 127.2% and reaches 161.8%. This indicates that the price trend may continue in the same direction for a longer period, providing a potentially profitable trading opportunity for traders who have correctly identified the pattern. It's important to note that this extension is not always reliable and should be used in conjunction with other technical analysis tools to confirm the validity of the trade. Note: In strongly trending markets, the retracement (BC) may not reach the usual 61.8% or 78.6% of AB, but only 38.2% or 50%. It's important to adapt to market conditions and adjust your analysis accordingly. Moreover: During the move from A to B, the market should not exceed either A or B. During the move from B to C, the market should not exceed either B or C. During the move from C to D, the market should not exceed either C or D. For a bullish ABCD, point C must be lower than A, and D must be lower than B. For a bearish ABCD, point C must be higher than A, and D must be higher than B. To identify an ABCD pattern on your TradingView trading chart, follow these six steps: 1 ) Log in to your TradingView trading account and open a market chart. 2 ) Locate the AB line. Remember that this move should be completely contained within points A and B. 3 ) Locate the BC retracement. This should reach either the 61.8% or 78.6% level of the move from A to B. 4 ) Draw the CD line. Using the AB and BC lines, you should be able to predict where point D will fall. CD will generally be equivalent to AB and either 127.8% or 161.8% of BC in both price and time. 5 ) Keep an eye out for price gaps and wide-ranging bars in the CD leg. These can indicate that an extension is forming, implying that CD may be longer than AB. 6 ) Trade the possible retracement at point D. If you've identified a bearish ABCD pattern, consider opening a sell position. On the other hand, if you've found a bullish one, consider buying. And here are a couple of examples: I hope you found this guide on identifying the ABCD pattern useful. Let me know your thoughts in the comments section below, and don't forget to like and follow me if you found this guide helpful.
FX_IDC:XAUUSDEducation
by FOREXN1
44
GBPUSD The Pullback Here it is, after a long couple of weeks, GBPUSD has finally gone bearish. This is a long shot, but this particular area could serve as the next potential reversal point. Along the way there could be some setups that can support price using this area to rally up, at least to the LQP. The 38.2 take profit is near the LQP so there's some level of interest in case price doesn't have the momentum to continue rallying up. However, this D point could also be the orchestra to start a new trend, resume the bullish trend. On the daily, we have a Wyckoff Distribution lingering, maybe this could fuel the 4th hit to be higher?
Short
by BeaucoupPips
SELL BEARISH CRAB ON NZDUSD 15MinNZD/USD has formed a bearish crab pattern on the 1h chart, providing a trading opportunity with a 1:4 risk to reward. The measurements for a valid crab pattern are detailed below. XA Retracement: 0.382 - 0.618 AB Retracement: 0.382 - 0.886 BC Projection of D leg: 2.618 - 3.618 XA Retracement of D: 1.618 Confluence: We can see an Elliot wave completion on H1, ABC reversal is anticipated on the 5th impulse wave. All 3 measurements form within close proximity in the potential reversal zone. as you can see, the shooting star reversal candle formed on 15Min TF confirmed the PRZ. The price has already been pushed lower to confirm the 3.14 measurement, and as such entry is feasible. Have a good week everyone!
Short
by TheGreatCapital
Time to PLAY SHORT on USDJPY Dear Tradingview family, Symbol: #USD JPY Strategy: #Harmonic_Chart_Patterns, #Anti_Gartley_Pattern, #Rising_Wedge, #Trend_Reversal #Trendline #Support_Resistance #RSI_Bearish_Divergence. Trade Call Type: #Short. Order Type: Sell Stop Indicators: #Price_Action. #Chart_patterns, #Anti_Gartley_Pattern, #Rising_Wedge #Trendline #Support_Resistance #RSI_Bearish_Divergence. #RSI #RichTL Entry: Short when price breaks Lower High after break down of Rising Wedge Pattern. Anchor Time: 4 Hours Trading Time Frame: 1 Hours. Entry price: 132.544 Take Profit: 131.252 Stop Loss: 133.860 RRR- 1:1 Methodology: As a professional and experienced forex, crypto and stocks trader, I will be using a rigorous methodology that involves analyzing the price action and key levels and using a combination of indicators, harmonic chart patterns and chart patterns. I will be looking for potential trendlines , support & resistance levels where the price action may reverse and using our indicators to confirm the validity of our analysis. Based on my analysis, I will then determine the optimal entry and exit points for our trade, as well as the appropriate stop loss level to manage risk. Analysis: The current price action on the USDJPY chart is showing a clear Breakout of #Anti_Gartley_Pattern, #Rising_Wedge on 4 & 1 hourly timeframes. Additionally, the Bearish RSI divergence on 4 Hour & 1 hour time frame add value to the strength of reversal pattern. Price action’s this move provides me opportunity to earn some profits on when it is providing a great value of RRR of 1:1. My Sell Stop entry is planned to execute when price action comes down to break patterns. Conclusion: Based on our analysis, I believe that there is a potential trading opportunity for a SHORT trade. Risk Assessment: Conservative Traders risk 0.5% to 1.5%, moderator traders risk 1.6% to 3.5% and aggressive traders risk 3.6% to 5% of their account per trade. Please use Position size calculator to calculate your risk per trade. Overall, I believe this setup has a good chance of success based on the technical analysis , but as always, it's important to monitor the price action closely and adjust the trade if necessary based on new information.
Short
by The_TradingW0LF
Easy-to-Spot Bullish Forex PatternsHi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 For the biggest part, I prefer to trade reactive rather than predictive. Chart patterns really come in handy with this strategy. Here are my top easy to spot chart patterns, specifically focused on bullish chart patterns today. The green highlight dots are to help identify the margins of the pattern and the purple highlighted dot is where a long entry can be taken. While you're here 👀 See this related idea on EURUSD from the monthly timeframe: _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
Education
by CryptoCheck-
44
USDCAD: Bullish Harmonic Bat Pattern Signals Possible Buy EntryHello traders, USDCAD is presenting a potential bullish opportunity as we have a strong demand zone where the market previously rallied by more than 400 pips. Additionally, we have a bullish harmonic Bat pattern that completes near the zone, and we are also at the FIB golden level of 61.8. To trade this setup, we can look for a buy entry at the completion of the harmonic pattern, targeting the next resistance level. A stop loss could be placed below the demand zone to manage risk. The other way we can approach this idea is to wait for a further push to the downside and then look for confirmation before entering a buy trade Remember to always have a solid trading plan in place and manage your risk properly. Good luck and happy trading! Don't forget to follow and like this post and leave a comment with your thoughts. 💰📈👍
by TheTradersAvenue
17
GBPUSD, The Impending Short Part 2We’re coming up towards the end of the final push, push 3. Looking back at the H4 timeframe, there is a Shark Pattern near completion. The D point of this Shark Pattern aligns with the long term resistance as well as a psychological whole number 1.24. There are other methods that also support the theory that price may reach the 1.24. The ab=cd pattern suggests price can continue to rally on towards the 1.24. Mentioned previously today, there was a 15min Shark Pattern which later came back to do a type 2 reversal that gives a trader a second entry to ride towards the 1.24. We may see a completion of the price objective by Wednesday next, until then sit on your hands and wait for price to do it’s thing. Beaucoup Out.
by BeaucoupPips
AUDUSD: Bearish breakout (Sell opportunity)The AUDUSD currency pair has exhibited a recent uptrend within the M30 bullish channel, presenting favorable opportunities for range trading. However, a bearish breakout occurred below the lower boundary of the aforementioned bullish channel at 0.66620. This event was followed by the pair’s breach of a key support zone at the psychological level of 0.6650, establishing a bearish market structure that underpins bearish sentiment. Moreover, a bearish harmonic pattern has also materialized on the M15 timeframe, which adds weight to the bearish outlook. It is plausible that the pair may test the previously violated support zone at the psychological level of 0.66600 before initiating a decline. In view of this, my short and medium-term targets are set at 0.65943, with 0.66000 serving as an alternative target.
Short
by Samuel124
EURZAR Weekly ShortI drew this pattern a few weeks ago and it's good to see that price has conformed to the pattern. Being a pattern found on the weekly timeframe this level can get tested a couple of time over a number of weeks. The most ideal thing to do is to catch the trade on lower time frames fist analysing the D1. You are basically looking for signs of price divergence over a long period of time. Because this is a very volatile pair, you might see an initial moving away fron the peak and thena violent stop hunt towards the peak just to stop out premature entries and to induce buy entries before the final Downtrend begins. Take care.
Short
by harveygoldfx
1
AUDJPY Bullish Persuasion Round 2 On my previous AUDJPY analysis, unfortunately I got wicked out, however, I remained patient and another setup arise. This bullish Bat indicates price has reached a significant turning point from the pullback it's done since price can't go one direction forever and needs to breathe. Internal strength on a lower time frame has also confirmed this a significant turning point as it coordinated with the completion of the pattern. My only concern is price may have another attempt to the low, possibly with critical number, as price is changing character and may require just a little more time before reversing and continuing with the predominate trend.
Long
by BeaucoupPips