Common Mistakes in ABCD Pattern Trading The biggest pitfall in ABCD pattern trading is seeing an ABCD pattern where there isn’t one. Active stocks that are subject to large swings over a short time ...

To trade using the ABCD pattern, you have to identify the indicator, conduct further research, and then set your trading alerts. Remember that the chart pattern can develop across different timeframes ...

Confirm the ABCD Pattern with Other Indicators Before entering a trade based on the ABCD pattern, remember to confirm the alignment of the pattern with other technical indicators.

Therefore, the expectation is for the initial target from the ABCD pattern to be reached. It completes at 2.08, which is where there is price symmetry between the CD leg and the AB leg of the pattern.

That’s the ABCD pattern, and it can be an invaluable tool when other momentum indicators fail.

Natural gas shows strength as it breaks through resistance and confirms a bullish ABCD pattern.