AB=CD [Real-Time]

The AB=CD [Real-Time] by Zeiierman is a pattern-based trading indicator that helps traders identify potential trend continuation or reversal points in the market using the classic AB=CD pattern. This pattern, based on Fibonacci ratios, consists of three price swings and aims to predict future price movements.

How the AB=CD [Real-Time] Works

The AB=CD pattern consists of three legs:

1. AB Leg: The initial price move, either up or down.
2. BC Leg: The corrective retracement that moves opposite to the AB leg.
3. CD Leg: The final move in the same direction as AB, aiming to mirror the length of the AB leg.

The indicator identifies pivot points labeled A, B, C, and D, and calculates Fibonacci retracement and extension levels to highlight potential reversal zones and target points. The completion of the CD leg signals a potential trade setup, where traders can enter at point C and set their profit target at point D, with stop-loss just beyond point C to protect against pattern failure.

Usage of the AB=CD [Real-Time]

Traders can use this indicator to:

• Identify Entry Points: Typically at point C, to capitalize on the expected movement towards point D.
• Set Profit Targets: At point D, which is expected to mirror the length of the AB leg.
• Define Stop-Loss Levels: Just beyond point C to mitigate risks.
• Analyze Trend Continuation: Suggests that after a pullback to point C, the original trend is likely to resume towards point D.

Features of the AB=CD [Real-Time]

Key features include:

• Market Move Sensitivity: Adjust the pattern detection sensitivity based on the desired market move size (small, traditional, swing, custom).
• Bias Settings: Filter patterns based on anticipated market direction (bullish, bearish, both).
• Fibonacci Levels: Customize retracement and extension levels for entry, stop-loss, and target points.
• Visualization Options: Toggle the display of stop-loss and target lines, and customize colors for better visual distinction.

Conclusion

The AB=CD [Real-Time] indicator by Zeiierman is a powerful tool for traders looking to leverage Fibonacci-based patterns to identify potential market movements. By providing real-time updates and customizable settings, it enhances the ability to make informed trading decisions.