As of 04/15/2024
Indus: 37,735 -248.13 -0.7%
Trans: 15,388 -109.77 -0.7%
Utils: 849 -6.15 -0.7%
Nasdaq: 15,885 -290.07 -1.8%
S&P 500: 5,062 -61.59 -1.2%
|
YTD
+0.1%
-3.2%
-3.7%
+5.8%
+6.1%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/15/2024
Indus: 37,735 -248.13 -0.7%
Trans: 15,388 -109.77 -0.7%
Utils: 849 -6.15 -0.7%
Nasdaq: 15,885 -290.07 -1.8%
S&P 500: 5,062 -61.59 -1.2%
|
YTD
+0.1%
-3.2%
-3.7%
+5.8%
+6.1%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
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
If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.
$ $ $
|
A Simple ABC Correction
|
| Characteristic | Discussion |
| Nested | The simple ABC correction is a measured move down chart pattern nested inside a measured move up. |
| Chart | See the above chart. Point D must be below point C, meaning that the measured move down (MMD: EABC) must not correct too far. MMDs that correct too far fail more often. |
| Corrective phase | The corrective phase of the large MMU is an MMD, like the ABC pattern shown in the above chart. Only one MMD should be present with two straight-line runs, EA and BC. Discard patterns with pronounced turning points within those two down legs. |
| Points | Within the MMD, points A, B, and C are below E. Be especially careful that B not be above E. Point C starts a major price up swing. |
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. |
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
Support this site! Clicking any of the books (below) takes you to
Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."
|
My Stock Market Books
|
My Novels
|
I'm in the prime of my strife.
on 
