November 16, 2011
- in Uncategorized by schooloftrade
AB=CD Pattern Trading Strategy
The AB=CD Pattern is one of the highest percentage patterns we use in our trading strategy. The AB=CD pattern is very simple to learn, and even easier to use for winning trades. I have a few different ways that I like to use the AB=CD Pattern, and I train my members on this every day in our live trade room.
The AB=CD Pattern give you a great profit target. If you locate the AB=CD Pattern it will give you a ‘reversal zone’ which is the ‘D’ point of this pattern. We know that price will attempt to move into the ‘reversal-zone’ and we will use this as a final target. If price is rising up into the ‘reversal-zone’ above us, I’m buying pullbacks on the way up into the ‘reversal-zone’.
The AB=CD Pattern give you the ‘reversal-zone’ which is where we look for price to reverse. If price is moving higher into the ‘reversal-zone’, we then look for an opportunity to trade the price reversal (short) as soon as it tests the ‘reversal-zone’.
The AB=CD Pattern can be used on any timeframe you chose, and works on all different asset classes. I have used the AB=CD Pattern on daily charts looking for swing trades, and on tick charts looking for the best profit target for a trade I am currently in. The next time you are looking for a good profit target, look for the AB=CD Pattern and you will be amazed how effective this pattern really is.
