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.
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. These patterns can be either bullish or bearish. It is important to note that it would be extremely rare for line lengths and ratios to ever be exactly equal. Technical analysis such as this is simply not an exact science. Because of this, some experimentation may be necessary.
Both the time and length of AB equal the time and length of CD.
CD should be either 127.2% or 161.8% of BC.
CD should be either 127.2% or 161.8% of AB.
Can change the color of the border as well as its thickness.
Can change the text color, font type and font size. You can also choose to bold and/or italicize the text.
Allows for the precise placement of the pattern's first point (Price P1) using a bar number and price.
Allows for the precise placement of the pattern's second point (Price P2) using a bar number and price.
Allows for the precise placement of the pattern's third point (Price P3) using a bar number and price.
Allows for the precise placement of the pattern's fourth point (Price P4) using a bar number and price.
In View properties dialog you can switch the ABCD tool displaying on charts of different timeframes:
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