As of 05/12/2025   Indus: 42,410 +1,160.72 +2.8%     Trans: 15,020 +979.88 +7.0%     Utils: 1,014 -17.34 -1.7%     Nasdaq: 18,708 +779.42 +4.3%     S&P 500: 5,844 +184.28 +3.3%	YTD -0.3%   -5.5%    +3.2%   -3.1%   -0.6%	Targets    Overview: 05/12/2025     43,700 or 40,900 by 06/01/2025   16,000 or 14,000 by 06/01/2025   1,075 or 1,000 by 06/01/2025   19,500 or 17,700 by 06/01/2025   6,000 or 5,600 by 06/01/2025
Chart Pattern Indicator: on 4/15/25

As of 05/12/2025   Indus: 42,410 +1,160.72 +2.8%     Trans: 15,020 +979.88 +7.0%     Utils: 1,014 -17.34 -1.7%     Nasdaq: 18,708 +779.42 +4.3%     S&P 500: 5,844 +184.28 +3.3%	YTD -0.3%   -5.5%    +3.2%   -3.1%   -0.6%
Targets    Overview: 05/12/2025     43,700 or 40,900 by 06/01/2025   16,000 or 14,000 by 06/01/2025   1,075 or 1,000 by 06/01/2025   19,500 or 17,700 by 06/01/2025   6,000 or 5,600 by 06/01/2025
Chart Pattern Indicator: on 4/15/25

Bulkowski on the Simple ABC Correction

The simple ABC correction is a measured move down chart pattern nested inside a measured move up. If measured moves are unfamiliar, then click the associated link for more information. My book, Encyclopedia of Chart Patterns, pictured on the left, has a complete discussion of measured moves.

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Simple ABC Correction: Identification Guidelines

Simple ABC Correction: Trading Tips

Reference the figure on the right.

Trading Tactic	Explanation
Trendline	Draw a trendline from E to B and extend it downward. When price closes above the trendline, buy.
Swingers	For aggressive traders, draw a trendline down from B along the tops and buy when price closes above it. A close above the intraday high at A (blue trendline) also works as a buy signal.
Buy	For conservative investors, a close above B or even E is the buy signal.
Reverse	Be prepared for price to reverse at the price of E -- 36% do and prices drop, confirming a double top.

Simple ABC Correction: Example

The above figure shows an example of a simple ABC correction chart pattern. Point A begins the chart pattern, B is the middle turning point, and C completes the pattern. Another simple ABC correction occurs at points 1, 2 and 3.

-- Thomas Bulkowski

See Also

• The ABC correction is part of an Elliott wave zigzag. Read about it.
• Review the measured move down to help make sense (cents?) of the simple ABC correction.
• The measured move up is also a useful chart pattern for price prediction.
• The nature of bottoms.
• Swing rule. A reliable way to predict price targets.

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