ABC Pattern Detection
ABC Pattern Pro identifies corrective wave patterns by analyzing swing structure and validating each pattern against Fibonacci retracement criteria. Dual concurrent detection sizes let traders monitor both quick pullbacks and larger corrections simultaneously on the same chart.
Pattern Structure
ABC patterns consist of three confirmed swing points that form a corrective wave within a trend. ABC Pattern Pro detects both bullish and bearish variations automatically.
The Three Points
- Point A — The starting extreme. For a bullish ABC pattern, point A is a swing low. For a bearish ABC pattern, point A is a swing high
- Point B — The impulse extreme in the opposite direction. Point B represents the peak of the move from A
- Point C — The retracement point. Point C must retrace a defined percentage of the AB leg to qualify as a valid pattern
Bullish ABC Pattern
A bullish ABC pattern forms when price makes a swing low at A, rallies to a swing high at B, then pulls back to a higher swing low at C. The pullback at C creates an entry opportunity in the direction of the original upward move. Point A must be lower than the prior swing low, and point C must be higher than point A.
Bearish ABC Pattern
A bearish ABC pattern forms when price makes a swing high at A, drops to a swing low at B, then rallies to a lower swing high at C. The rally at C creates a short entry opportunity. Point A must be higher than the prior swing high, and point C must be lower than point A.
Fibonacci Retracement Validation
ABC Pattern Pro validates each detected pattern by measuring how deeply the BC leg retraces into the AB leg. Only patterns where the retracement falls within the configured range qualify as valid ABC setups.
| Setting | Default | What It Controls |
|---|---|---|
| Retracement Min | 50.0% | Minimum BC/AB retracement required — patterns with shallower pullbacks are filtered out |
| Retracement Max | 88.6% | Maximum BC/AB retracement allowed — deeper pullbacks risk trend invalidation |
ABC Pattern Pro displays the nearest standard Fibonacci level (38.2%, 50%, 61.8%, 78.6%, 88.6%) at point C. This label gives immediate visual context for the retracement depth without requiring manual Fibonacci measurement.
A retracement near the 61.8% Fibonacci level often represents the strongest ABC setups — deep enough to offer favorable risk/reward, but not so deep that the trend structure is compromised.
Dual-Size Detection
ABC Pattern Pro runs two independent detection layers simultaneously. Each layer uses its own swing sensitivity and produces independent pattern detections with distinct color coding.
| Layer | Default Size | Purpose |
|---|---|---|
| Detection 1 | 7 | Smaller swings — catches emerging pullback patterns more frequently |
| Detection 2 | 14 | Larger swings — identifies more significant correction structures |
Detection 2 can be disabled for a cleaner chart display. When both layers are active, traders can visually distinguish smaller-scale ABC patterns from larger-scale corrections on the same chart.
Detection Size 2 must always be larger than Size 1. ABC Pattern Pro validates this at startup and displays an error if the constraint is violated.
Time Symmetry Filter
ABC Pattern Pro includes an optional quality filter that validates the temporal proportionality between the AB and BC legs. When time symmetry is enabled, patterns where the BC leg's duration is disproportionate to the AB leg's duration are rejected.
| Setting | Default | What It Controls |
|---|---|---|
| Time Symmetry | Off | Enable or disable the duration ratio filter |
| Min Ratio | 0.5 | BC duration must be at least this fraction of AB duration |
| Max Ratio | 2.0 | BC duration must not exceed this multiple of AB duration |
The time symmetry filter is useful for eliminating patterns where one leg developed over a few bars while the other took dozens. This structural asymmetry often produces lower-quality setups with less predictable outcomes.
Pattern Lifecycle
ABC Pattern Pro manages each detected pattern through four distinct states:
- Detection — A valid ABC structure is identified when all swing, retracement, and symmetry criteria are met. The pattern triangle, labels, and entry line are drawn on the chart
- Monitoring — The pattern remains active while awaiting entry confirmation. If point C updates (the swing extends further), ABC Pattern Pro adjusts the pattern drawings dynamically
- Entry — When the configured entry condition triggers, ABC Pattern Pro transitions the pattern to a trade and executes the trade management visualization
- Invalidation — A new opposing swing or a retracement moving outside the valid range invalidates the pattern. Failed patterns are cleaned up automatically unless "Show Historic Failed Patterns" is enabled
FAQ
What makes a valid ABC pattern?
A valid ABC pattern requires three confirmed swing points where the BC leg retraces a configurable percentage of the AB leg. The retracement must fall within the defined Fibonacci range (default 50% to 88.6%). If time symmetry is enabled, the BC duration must also be proportional to the AB duration.
What is dual-size detection in ABC Pattern Pro?
Dual-size detection runs two independent pattern detectors simultaneously with different swing sensitivities. The smaller size catches emerging pullback patterns, while the larger size identifies more significant correction structures. Both are displayed on the same chart with distinct color coding.
How does the time symmetry filter improve pattern quality?
The time symmetry filter compares the duration of the BC leg to the AB leg. If the ratio falls outside the configured range, the pattern is rejected. This filters out patterns where one leg is disproportionately longer than the other, improving overall setup quality.