Formation Pattern for long and short opportunities
known to many traders as the ABCD pattern
The formation pattern is a technical pattern. It sets up by identifying an intermediate high or low. In a uptrend a line is drawn from the intermediate point low to the next high then to the next price correction low. From that second low point a price target or goal is outlined on the chart. The opposite occurs in short candidates. See the charts below:
ABCD pattern
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