What is ABCD trading pattern?

The ABCD pattern is an intraday chart pattern. It’s when a stock spikes big, pulls back, then grinds ups and breaks out to a new high of the day. What’s the Importance of the ABCD Trading Pattern? The ABCD pattern helps give traders a framework for where to risk and enter their trades.

What is the ABCD pattern drawing tool?

The ABCD Pattern drawing tool allows analysts to highlight various four point chart patterns. Users can manually draw and maneuver the four separate points (ABCD). The ABCD points create three separate legs which combine to form chart patterns. The three legs are referred to as AB, BC, and CD.

What is a day trading pattern?

As a day trading pattern, these two intraday swings are connected by a countertrend (smaller) leg from B-C. There are variations of the pattern, like an ABCD extension, as well an interpretation that is more like a cup and handle pattern popularized by InvestorsUnderground.com

Where can I learn more about IG – ABCD trading patterns?

You can go through our online trading courses on IG Academy to learn more about technical analysis and chart patterns. Alternatively, head over to our dedicated forum, IG Community – ABCD pattern to discover how other fellow traders have fared using the trading strategy.