What are ABCD chart patterns?

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.

Is the ABCD pattern intraday or multiday?

The ABCD pattern is an intraday pattern. So, you need to consider the multiday chart too. Ignore the stock if there’s a lot of resistance overhead or if it has one-and-dones. I know I say this time and time again, but you must have all your ducks in a row before jumping into a trade. Do your research first.

Is chasing an ABCD pattern stock a good strategy?

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.