AB = CD pattern could be unfolding
The ABCD
Let’s start this lesson with the simplest harmonic pattern. So what could be more basic than the good old ABC’s?
Lets make it more fun and add an extra letter on the end, (because we are cool like that), So now we have the ABCD pattern!
What is the ABCD Trading Pattern
The ABCD pattern is an easy-to-identify chart pattern that consists of two equivalent price legs. It is a harmonic pattern that helps traders predict when the price of an asset is about to change direction.
The pattern can be used to predict either a bullish or bearish reversal depending on the orientation. It is particularly important as it appears very frequently in stock/crypto charts.
What does this pattern tell us?
So the first leg up is something we have already had, that was the move from Point A ($55500) to Point B ($64800). This will tell us what the Point C to Point D price target will be.
From Point B to Point C is still not 100% complete, but we can assume that the lowest point will be the ultimate lowest price for a bounce before the pattern is deemed invalid.
A bounce from the $59000 as the absolute lowest target will then send the bitcoin price all the way up to $68,300, This is where you will want to take some profits
PS, This is not financial advise!
If we however break below $59000, this could ultimately mean that we are going into a bear trend. Be vigilant when opening any position, and be sure to set a stop loss.
Let’s start this lesson with the simplest harmonic pattern. So what could be more basic than the good old ABC’s?
Lets make it more fun and add an extra letter on the end, (because we are cool like that), So now we have the ABCD pattern!
What is the ABCD Trading Pattern
The ABCD pattern is an easy-to-identify chart pattern that consists of two equivalent price legs. It is a harmonic pattern that helps traders predict when the price of an asset is about to change direction.
The pattern can be used to predict either a bullish or bearish reversal depending on the orientation. It is particularly important as it appears very frequently in stock/crypto charts.
What does this pattern tell us?
So the first leg up is something we have already had, that was the move from Point A ($55500) to Point B ($64800). This will tell us what the Point C to Point D price target will be.
From Point B to Point C is still not 100% complete, but we can assume that the lowest point will be the ultimate lowest price for a bounce before the pattern is deemed invalid.
A bounce from the $59000 as the absolute lowest target will then send the bitcoin price all the way up to $68,300, This is where you will want to take some profits
PS, This is not financial advise!
If we however break below $59000, this could ultimately mean that we are going into a bear trend. Be vigilant when opening any position, and be sure to set a stop loss.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.