Day trading is all about recognizing patterns in stock charts, and no concept is more important for new traders to learn than ABCD pattern trading. This pattern ...

In this article, we’ll break down the ABCD pattern, show you how to identify it on your charts, and provide actionable steps to incorporate it into your trading strategy.

An ABCD chart formation gets its name from the distinct line it traces, whose peaks and valleys constitute the A, B, C and D points. You can see an example of the pattern in this chart for Eltek Ltd.

Given the long-term nature of this pattern, gold has reached a potential pivot level that could lead to a retracement and end the current sharp advance, at least for the near-term.

Confirmation on a chart is the term used to describe a chart pattern showing a likely sustainable stock trading opportunity.