The ABCD Pattern (also called the Measured Move) is a simple but powerful harmonic pattern. It identifies market symmetry — the move from A to B is approximately equal in time and price to the move from C to D. This symmetry allows precise entry at C and a price target at D.
ABCD Pattern Diagram
ABCD Pattern Rules
- AB leg — initial move (impulse wave)
- BC leg — retracement of AB (typically 38.2% to 78.6% of AB)
- CD leg — continuation that equals AB in price distance
- Point D — the completion point and entry area
Fibonacci ABCD Relationships
| BC Retracement | CD Extension | Pattern Type |
|---|---|---|
| 38.2% of AB | 127.2% of BC | Standard ABCD |
| 61.8% of AB | 161.8% of BC | Fibonacci ABCD |
| 78.6% of AB | 127.2% of BC | Deep ABCD |
Trading the Bullish ABCD
Entry at Point D:
Calculate D = C − (A to B distance)
Set limit buy order at Point D price level
Stop Loss: 1% below Point D
Target 1: B level (swing high of the pattern)
Target 2: A level extended (if strong momentum)
This gives you a pre-calculated entry and target before price even reaches D
Calculate D = C − (A to B distance)
Set limit buy order at Point D price level
Stop Loss: 1% below Point D
Target 1: B level (swing high of the pattern)
Target 2: A level extended (if strong momentum)
This gives you a pre-calculated entry and target before price even reaches D
The ABCD Pattern is extremely useful for NSE intraday trading on NIFTY 50 and BANK NIFTY using 15-minute charts. The symmetry of the pattern often holds well on index futures because algorithmic trading enforces these harmonic relationships. Pre-enter your limit order at D and let the market come to you.