ABCD Pattern: Unlocking Bullish Potential with Strategic Entry and Exit Signals
The ABCD Bullish pattern is a classic stock trading formation that signals a potential upward price reversal. It consists of four key points: A, B, C, and D. The pattern begins with an initial price drop from A to B, followed by a corrective move upward to point C. The final leg extends downward to point D, which forms a lower low compared to point C. This completion at D suggests a potential bullish reversal, indicating that buyers may step in, pushing the price upward. Traders use this pattern to identify optimal entry points for long positions.