ABCD Pattern
The ABCD is a 4-leg structure pattern (a simplified harmonic). X provides direction context only — ratio checks use only the A, B, C, D legs. Entry is at D when CD has completed and equals AB in length.
Structure
| Direction | X | A | B | C | D |
|---|---|---|---|---|---|
| Bullish | High | Low | High | Low | Low (≈ AB length below C) → Buy |
| Bearish | Low | High | Low | High | High (≈ AB length above C) → Sell |
X is used solely to validate direction (alternating swing sequence). The PRZ is a ±0.3% band around the projected D price.
ABCD uses consecutive swing points only; it will not skip an intervening swing low/high.
Rules
| Check | Measurement | Target | Tolerance |
|---|---|---|---|
| BC retracement of AB | |BC| / |AB| | 0.618 | ±0.08 |
| CD equals AB | |CD| / |AB| | 1.0 | ±10% |
Confidence
confidence = 1 − (bcError + cdError) / 2
Clamped to [0, 1].
SL/TP
- SL: 10% of the CD length beyond D
- TP1: D ± 0.618 × |CD|
- TP2: D ± 1.0 × |CD|
- TP3: A price
(± direction-dependent)
Levels are scalable via per-pattern TradingConfig multipliers. See TP Level Calculation.
Emerging PRZ Entry
When a Strategy uses entryStrategy = 'emerging_prz', the auto-trade engine places a SELL_LIMIT (bearish) or BUY_LIMIT (bullish) at the projected PRZ before D confirms. The abcdPrzEntry field on the Strategy controls which PRZ edge is used as the limit price:
abcdPrzEntry value | PRZ edge | Description |
|---|---|---|
null / '1.272' | Near (default) | 1.272 Fibonacci extension of BC — matches backtest prz_touch behaviour |
'1.618' | Far | 1.618 Fibonacci extension of BC — deeper fill, later entry |
abcdPrzEntry is ABCD-only. All other harmonic patterns use midpoint logic for emerging_prz entries. The field is visible in the Strategy form only when strategyType = 'abcd' and entryStrategy = 'emerging_prz'.
Related
- Three Drives Pattern — extends ABCD with three equal impulse drives
- Swing Point Detection
- Markets — Pattern Detection Overview