ABC Pattern Questions

Discussion in 'Technical Analysis' started by codetroll, Jan 5, 2009.

  1. I've been reading and reviewing some of the books I have and I've got a question about the ABC pattern.

    I don't have a program to detect them automatically or draw them automatically, so I have to do it by hand.

    I understand their tied to fib ratios, but which ones exactly? (i.e. what numbers/ratios should I be looking for for the length of AB and BC to validate this pattern?)

    I'm using QuoteTracker & Sierra Chart as my primary software packages just fyi. I was thinking about trade station but the cost and reviews I've read don't make me want to get it.

    Any websites/resources to look at for further guidance?

    Thanks in advance.


    Yes, I have Suri's book, but I need more information such as the numbers.
  2. What?
  3. that can be a pretty subjective thing depending on your trading and methodology especially for ellioticians. their guidelines can be too strict. but generaly speaking it can have a .618/1.618, .786/1.27, or even a 1/1 flat correction. alot of times those abc's turn into triangles which can be harder to trade
  4. I hated the ABCs....moved on to thicker stocks and I see less of it. besides, spec lost alot of power these days, and they do less of this shit.
  5. Interesting, so are you suggesting then that it work only in certain market types (i.e. bull markets?)

    And what do you think of other harmonics?
  6. No, it happens in all's basically a trap set by the spec himself(or major MM). by playing thicker stocks, you see less of this......and even if you get shaken out, it's easier to find another entry. this was a bread&butter strategy widely used by all specialists. bottomline is you can avoid this to a certain degree. Poor specialists are on a verge of extinction.....LAB is near it's all time low.
  7. Scott Carney
    Larry Pesavento

    Harmonic Trader
    Both give the ratios

    Putting aside the rhetoric most traders will cast toward these patterns and the esoteric choices you may or may not choose. Keep it very simple, wait for confirmation (smaller piece of the pie) and pull the trigger.

    If you're wrong exit or reverse.

    Suri has some excellent examples as well as sources in the back of his book.

    Learn Gartley's too, if you're good at spotting them.
  8. What part of it was a trap?

    Trading the reversal upon the completion of it OR trading the continuation of the 2nd leg?