#ABCD #Pattern #Extensions
ABCD Pattern Extensions webpage is a webpage that teaches day or swing traders
and investors how to thoroughly master and trade like a pro the various
types of the ABCD chart patterns extensions. In the end of this trading
material, one will know when and where ABCD chart pattern extensions
occur and most importantly trade them like a pro.
Be ready to master the ABCD pattern extensions now.
ABCD chart pattern extensions occur now that the price structure CD is
strictly superior to AB. The existing phenomenon characterises bullish dynamic
financials instruments in a strong market environment.
Although, core investors establish their initial exit price target at the point D
(where there is equality between CD and AB), the market sentiment becomes
greatly bullish as both the fundamentals and technical indicators align. The
same is likewise true for an expansive bearish ABCD as financials continue
to degenerate.
In regular conditions, financial markets are directional (imbalanced) throughout
an abcd extension. Certainly, either bulls or bears drive the momentum. Generally, bullish traders stay away during an extended bearish CD while
bearish dealers do not interfere with an extended bullish ABCD.
Extended ABCD chart pattern
Key points 1/ the retracement or pullback to C
is an occasion to buy as the financial instrument reveals a higher
low after an initial bullish wave.
Point C becomes a bullish trading zone (or gathering point)
to traders who responded.
2/ the rally (contra trend) or retracement
to C during a bearish ABCD is justly an enticement to sell after the prior bearish
impulsive progress.
3/ apart from the financials and market
sentiment that contribute to the extension, keen Fibonacci traders habitually set
their exit price targets at 214%, 238%, 261.80% and 314% Fibonacci extensions.
View chart
Image = Apple Inc stock (AAPL) on the monthly chart exhibiting
an ABCD pattern extension.
The green spot on the chart is the point A (mid 2004).
The red spot on the chart is the point B (start of 2008).
The blue spot on the chart is the point C (start of 2009).
The turquoise spot on the chart is the point D (end of September 2012).
Notice that the price action AB (green line) is strictly shorter than CD (orange line).
This is an ABCD pattern extension because AB is shorter than CD (there is
no equality between AB and CD price actions).
Learn to master the ABCD chart pattern extensions at
http://www.stochastic-macd.com/abcdpatternextensions.htm