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What is ABCD pattern in trading?

The abcd pattern in trading is an intraday chart pattern that reflects the natural movement of the market. It consists of an initial leg up or leg down followed by a short consolidation and then another leg up or down in the direction of the original move. It looks a lot like a zig-zag.

Should you trade ABCD patterns?

If not, don’t trade it. When watching an ABCD pattern play out, it’s tempting to jump into the consolidation level of the C leg before the 2 p.m. window. But this sets traders up for failure. They’re not meeting the key criteria for trading ABCD patterns.

Is chasing an ABCD pattern stock?

Chasing is not a strategy. A stock that keeps grinding higher all day is not an ABCD pattern stock. It won’t have the clear risk you need. So be patient. It’s tough missing a play just because it doesn’t meet all your criteria. But remember, the more selective you are — the better your odds.

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