Pattern Counter & Potential ABC Pattern
- : March 14, 2021
- : B. Krishnakumar
The Pattern Counter feature is such a wonderful concept that I wanted to talk more about it this week. Hope you found last week’s post on delineation of volatility & trend using Pattern Counter concept to be informative. This week, we will take a quick look at how to use pattern counter to identify potential ABC candidates.
I will talk about the bullish ABC pattern alone and you can explore this further. Before reading any further, ask yourself how can this be achieved? Just think!!
Am sure you would have decided to read further instead of thinking. Living in a digital age where we are increasingly getting lazy, there is little incentive to think these days. Let us proceed.
The combination of high “Trend Ratio” and “Bearish Breakout” could be an ideal setting for this. Have a look at the chart below which has this combination.
In the above chart, the trend ratio is a high positive number while the pattern is bearish breakout. There is one other combination which can produce potential ABC and /or triangle pattern. Think and let me know your findings through email or in telegram channel.
Again, you can play around with multiple box sizes and look for candidates. There are so many possibilities here. Use your creative side to explore this wonderful concept which is unique to Point & Figure charts.