ABCD Pattern
Application
The ABCD Pattern drawing tool allows analysts to highlight various four point chart patterns. Users can manually draw and maneuver the four separate points (ABCD). The ABCD points create three separate legs which combine to form chart patterns. The three legs are referred to as AB, BC, and CD.
Each of the four points (ABCD) represent a significant high or low in terms of price on the chart. Therefore, the three previously mentioned legs (AB, BC, CD) represent different trends or price movements which move in opposite directions.
As a result there are three major ABCD chart patterns that are most common. These patterns can be either bullish or bearish. It is important to note that it would be extremely rare for line lengths and ratios to ever be exactly equal. Technical analysis such as this is simply not an exact science. Because of this, some experimentation may be necessary.
The three major patterns include:
- AB=CD
- Classic ABCD
- ABCD Extension
AB=CD
Both the time and length of AB equal the time and length of CD.
Classic ABCD
CD should be either 127.2% or 161.8% of BC.
ABCD Extension
CD should be either 127.2% or 161.8% of AB.
Style
Border
Can change the color of the border as well as its thickness.
Text Options
Can change the text color, font type and font size. You can also choose to bold and/or italicize the text.
Coordinates
Price 1
Allows for the precise placement of the pattern's first point (Price 1) using a bar number and price.
Price 2
Allows for the precise placement of the pattern's second point (Price 2) using a bar number and price.
Price 3
Allows for the precise placement of the pattern's third point (Price 3) using a bar number and price.
Price 4
Allows for the precise placement of the pattern's fourth point (Price 4) using a bar number and price.
Visibility
In Visibility properties dialog you can switch the ABCD tool displaying on charts of different timeframes:
