Day trading is all about recognizing patterns in stock charts, and no concept is more important for new traders to learn than ABCD pattern trading. This pattern ...

In this article, we’ll break down the ABCD pattern, show you how to identify it on your charts, and provide actionable steps to incorporate it into your trading strategy.

A symmetrical triangle is a chart pattern characterized by two converging trend lines connecting a series of sequential peaks and troughs.

An ABCD chart formation gets its name from the distinct line it traces, whose peaks and valleys constitute the A, B, C and D points. You can see an example of the pattern in this chart for Eltek Ltd.

The double bottom pattern provides a minimum target of 24.06, just based on the pattern. You can see on the chart that a potential resistance zone from 23.52 to 23.59 would have to be exceeded first.

The rounding bottom pattern indicates positive market reversal. The trading volume in a rounding bottom chart pattern ideally follows and confirms the direction of the stock price.

A software consultant who had an 805% gain trading stocks in 2023 shares his clearest and easiest pattern to identify a breakout By Laila Maidan Goverdhan Gajjala, day trader Goverdhan Gajjala ...