Learn the in's and out's of ABCD pattern trading. Every day trader needs to be able to recognize this pattern in active stocks.

There are many different important parameters when it comes to car wheels, one of those being the bolt pattern. It's actually pretty straightforward to measure.

The basic measure for the ABCD pattern is to identify when the CD leg matches the price appreciation of the AB leg. It reflects the similarity between swings.

A new falling ABCD pattern has been added to the chart considering the most recent price action that created a new lower swing high during the correction.