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RoboForex - www.roboforex.com
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[QUOTE="Vlad RF, post: 215339, member: 61796"] [B][SIZE=5]How to Trade With the ABCD Pattern[/SIZE][/B] [I]Author: Victor Gryazin[/I] [CENTER][img]https://blog.roboforex.com/wp-content/uploads/2022/11/25.11.2022-1536x662.jpg[/img] [B]Dear Clients and Partners,[/B][/CENTER] In this review, we will get acquainted with the ABCD harmonic pattern. We will take a look at how it is formed, and how it can be used in trading. We will tell you what tools you will need to find it on the chart. [SIZE=5]What is the ABCD pattern in trading?[/SIZE] ABCD is one of the simplest harmonic patterns. It has only four points (A, B, C, and D) and three price swings (AB, BC, and CD). It looks like a diagonal lightning bolt on the price chart. The last point, D, is formed in the model, which is a potential reversal zone. Its appearance is considered a signal to open buy or sell positions. The ABCD trading pattern in trading is a three-wave correction, after which the price movement towards the main trend can continue. Stages of pattern formation [B]AB is the first movement impulse in the pattern[/B] [LIST] [*]BC is a 61.8-78.6% Fibonacci retracement of AB [*]CD is the final wave. It is an expansion of 127.2-161.8% Fibonacci from the BC segment and should be roughly equal to the AB impulse [*]D is the last point of the pattern, and once it has been formed, the quotes are expected to reverse [*]The ABCD pattern is relevant for the Forex, stock, commodities, and other financial markets. It gives signals for both buy and sell trading. It is suitable for trading in all market conditions (range, uptrends, and downtrends) and in different time frames. [/LIST] [img]https://blog.roboforex.com/wp-content/uploads/2022/11/ABCD-1-768x533.jpg[/img] [SIZE=5]How an ABCD bullish pattern is formed[/SIZE] [LIST] [*]The first impulse of the AB price movement is downwards [*]In the BC section, the price reverses and rises to 61.8-78.6% of AB [*]On the final stretch CD, the price reverses downwards and reaches 127.2-161.8% of the BC wave. The CD segment should be approximately equal to the first AB impulse [*]Once the pattern is formed, quotes are expected to rise from point D [/LIST] [B]Rules for trading the bullish ABCD pattern[/B] [LIST] [*]A buy position can be opened once the D-point has been formed and quotations have started to reverse upwards [*]The Stop Loss should be placed just below the pattern low at point D [*]Take Profit can be based on the C point or the maximum value of the pattern at A [/LIST] [URL="https://blog.roboforex.com/blog/2022/11/25/how-to-trade-the-abcd-pattern/?utm_source=earnforex.com&utm_medium=cpc&utm_campaign=rf_en_external_forums_blog&utm_content=text&a=ohrb"]Read more at R Blog - RoboForex[/URL] [B]Sincerely, RoboForex team[/B] [/QUOTE]
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