Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders
Learn How To Day And Swing Trade Using Stochastic, MACD, Bollinger Bands Like A Pro
ABCD Pattern Pivot Point
The most important key level of ABCD is the point C. Please do not forget that. One is trying to catch the price-action CD after the price pulls back after the initial AB price move. The ABCD pattern is still developing, but one is preparing oneself to participate in the next impulse wave. Note that the pattern can still fail at point C, therefore, one gives priority bullish signal above point C and bearish ones below.
The point C is a key pivot point of the ABCD pattern. The best approach is to identify the setup on a higher time frame and use different times frame method to time the entry. For example, one identifies the pattern on weekly chart, one uses 4H chart for the signal. Then one switch to 15M chart for the entry. One should avoid using a single time frame because in doing so one is just playing with the market noise. That is quite speculative.
An agile swing trader can take advantage of the high probability trade setup that occurs at point C without assuming anything.
A day trader can look for that setup on 2H, 4H, then combine it with the fifteen minute chart. A day Trader will also combine daily chart ABCD with hourly chart. The trick is to combine a higher time frame ABCD with a lower time frame. The story is the same, price moves from A to B and breaks resistance at point C then pulls back to retest point C.
One will wait for the common sense trend line to break at C.