ABCD measured move
A four-point swing sequence used to research symmetry and proportional legs.
What to look for
- Three alternating legs form A-B-C-D
- AB and CD length tolerance is fixed
- BC retracement range is predefined
AB rises eight points, BC pulls back five, and CD rises another eight into the D area marked in advance. The turn after D is a separate part of the rule.
For the bearish version, AB and CD fall by similar amounts, BC pulls upward, and D finishes in a lower target area.When the pattern is confirmed
A reaction at D plus an objective close or structural shift.
Where the idea is wrong
Beyond D by a declared price or ATR tolerance.
The easy mistake
Flexible ratios make almost any swing sequence fit after the fact.
A complete abcd measured move example
Mark four alternating swing points and require AB and CD to fall inside one fixed length tolerance, with BC inside a declared retracement band. Show equal-leg geometry before adding Fibonacci ratios.
First rule to test
D reaction close — enter only after a candle at D closes away from the completed CD leg by the chosen amount.
Alternative rule
Structure shift — wait for price to break the last minor swing against the CD direction, then enter on that break.
Place it where the pattern is wrong
Place the example stop one fixed ATR fraction beyond D, using the same D tolerance for every candidate.
Context, trigger and risk
The pattern handles timing. The other tools decide whether the location makes sense and how far normal price movement can reach.
Measures BC and CD ratios under one declared definition.
Defines A, B, C and D with a repeatable swing rule.
Sets leg tolerances and the stop buffer across pairs.
First exit to test
Prior swing — close at C, the nearest opposing swing visible when D completes.
Alternative exit
Fixed-R comparison — close at one preselected multiple of the initial stop distance.
Patterns need a method around them
Open a related strategy to see the wider market filter, entry, stop, exit and no-trade rule.
Trend pullback
Research whether shallow retracements inside an objective trend resume in its direction.
- ENTRY
- After eligibility is true, place a market order at the next H1 open when the signal candle closes beyond the highest high of the previous two pullback bars for a long, or below their lowest low for a short.
- STOP
- Place the stop 0.25 × ATR(14) beyond the pullback extreme. Size so entry-to-stop risk equals 0.50% of demo equity, rounded down to 0.01 lot; never widen the stop.
- EXIT
- Place a fixed target at 2R immediately after entry. If neither stop nor target trades first, exit at market after 24 completed H1 bars.
Support and resistance rejection
A framework for testing reactions at levels that genuinely predate the trade.
- ENTRY
- Enter at the next H1 open after the first qualifying rejection close back above the prior-day low or below the prior-day high.
- STOP
- Place stop 0.20 × ATR beyond the rejection candle extreme. Risk 0.50% of equity and round down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit after 12 completed H1 bars if neither stop nor target trades.
RSI divergence reversal
Tests whether a mismatch between price and RSI swings adds value after exhaustion.
- ENTRY
- Enter next bar open after price closes beyond the highest high of the five bars ending at the confirmed second low for bullish divergence; mirror below the five-bar low for bearish divergence.
- STOP
- Stop is 0.20 × ATR(14) beyond the second price pivot. Risk 0.50% of equity and round down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit at market after 20 completed H4 bars if neither stop nor target has traded.
Try it on older charts
Compare Fibonacci tolerances with simple equal-leg controls.