For more details of this input please check: ĪB percent, this parameter is used to check the price difference between A and B in percentage. Strength, this parameter is used to define the minimum number of bars to the left and right side of the swing point. Please note that this indicator is not intended for trend prediction, it will not inform you the direction of the price.īoth indicators have the following parameters and features.ĪBCD ratio, this parameter is used to adjust the ratio of AB:CD. The ratio value will be calculated with a very small threshold in order to get more results. We can hardly find any match without a threshold. In the equation above, I used the symbol of approximately equal (≈) because the exact ratio value only exists in theory. You can also use different value for ABCD ratio input, such as 1.2 which means |Price of C - Price of D| / |Price of A - Price of B|≈1.2, or using 0.618 for ABCD ratio which means |Price of C - Price of D| / |Price of A - Price of B| ≈ 0.618. If you want AB=CD, then just set the ABCD ratio input to 1. You will be able to control the shape of the pattern in order to detect your desired ones only. It will also plot six support and resistance levels, the default levels are based on golden ratio, you can change the ratios from input. The point A, B and C are swing points, once these three points are formed and if the current bar was qualified to be point D the indicator will send a sound alert and highlight the pattern on the chart. In order to be more efficient, I created two indicators for the ABCD trend chart pattern, one for downtrend which is used to detect pattern type 1 and 2, one for uptrend which is used to detect pattern type 3 and 4. Type4 is when point A and C are swing lows and point B is swing high, point C is higher than point A, point D can be either higher or lower than point B.Type3 is when point A and C are swing lows and point B is swing high, point C is lower than point A, point D can be either higher or lower than point B.Type2 is when point A and C are swing highs and point B is swing low, point C is lower than point A, point D can be either higher or lower than point B.Type1 is when point A and C are swing highs and point B is swing low, point C is higher than point A, point D can be either higher or lower than point B.I categorized four types of ABCD trend chart pattern. Here is the formula to calculate it: |Price of C - Price of D| / |Price of A - Price of B|. The ratio of AB:CD is determined by comparing the price difference between C to D and A to B. Our definition is when A, B and C are swing points and D reaches a given ratio of AB:CD. Please make sure you understand the mechanism before making purchase. These indicators are designed for professional use only.
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