All the charts we choose to analyze will have a simple ABCD waveform as shown below:


That's all we need for a successful trade - a wave that moves in the ABCD pattern. This waveform appears on all timeframes, from tick charts to month frames.

Before trading it let's explore why it appears so often on charts.

Trader Ti first decides to buy at price A, and then the price moves up to B.

Will trader Fred make any extra money when the price moves to point B? Of course not. So how does he have money? Yes, he has to sell it to make a profit.

And trader Teo also buys at point A and is preparing to sell to take profits at B.

The fact that Ti and Teo sold out at the same time at B caused the price to drop to point C (corrected by about 50% compared to the upside wave AB, typical for a normal pullback).

Now Ti and Teo are both happy that they have made a profit, they find a way to continue buying when the price corrects to low enough, and when the price hits point C they decide to buy more, and the price immediately rises and surpasses the peak. old is B to a new high of D, whereby they sell to take profits, causing the price to drop. Another new cycle starts until the trend ends.

And that's basically how the market works, and it shows up on all charts from smallest to highest.

There are two ways to trade ABCD: buy when the price is at point C, or when the price breaks point B.


Only trade the ABCD patterns on the strong trending pairs, as follows: the CCI indicator above 15 minutes above 100 is satisfactory.

Sell conditions:
  • Price follows the bullish BC (pullback) wave in the ABCD pattern;
  • The 15-minute CCI hit 100, indicating a strong trend;
  • Heiken Ashi candles change from green to red.
Buying conditions:
  • Price follows the bearish BC (pullback) wave in the ABCD pattern;
  • The 15-minute CCI hit 100, indicating a strong trend;
  • Heiken Ashi candles change from red to green.

Stop loss on nearest Swing high (with sell order) or below nearest Swing low (with buy order). Take profit as soon as you see a 15-minute CCI drop below 100 (momentum is reduced).

For example:


Yellow vertical lines are sell positions.

For example:


Sell at the green vertical line. A very nice sell order at the top.