ABC PATTERN Trading Guide

The ABC Pattern is a quantitative technical analysis tool. ABC Pattern Indicator (with Signals) Identifies and labels ABC patterns using ZigZag logic. Generates BUY/SELL signals for strategy usage upon pattern confirmation.

What does the indicator show?

• Market Structure & Momentum: Visualizes prevailing trend directions and key reversal zones.
• BUY / SELL Signals: Highlights confirmed entry and exit opportunities based on quantitative rules.
• Dynamic Boundaries: Provides adaptive levels for managing trade risk and reward expectations.

Key Settings

• ZigZag Depth (depth): Controls the calculation period and sensitivity for market detection.
• Deviation % (deviation): Controls the calculation period and sensitivity for market detection.
• Show Lines (showZigzag): Controls the calculation period and sensitivity for market detection.
• Show Labels (showLabels): Controls the calculation period and sensitivity for market detection.
• Show Ratios (showFibs): Controls the calculation period and sensitivity for market detection.
• Label Offset (labelOffset): Controls the calculation period and sensitivity for market detection.
• Buy Signal (buy): Controls the calculation period and sensitivity for market detection.
• Sell Signal (sell): Controls the calculation period and sensitivity for market detection.
• ABC Buy Pattern (pattern_buy): Controls the calculation period and sensitivity for market detection.
• ABC Sell Pattern (pattern_sell): Controls the calculation period and sensitivity for market detection.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used both as a direct signal source and as a market-state filter.

1. Signal Events

• buy - Buy Signal event signal.
• sell - Sell Signal event signal.
• pattern_buy - ABC Buy Pattern event signal.
• pattern_sell - ABC Sell Pattern event signal.

2. Filters and Trade Levels

• depth - ZigZag Depth value used for structural qualification or thresholds.
• deviation - Deviation % value used for structural qualification or thresholds.
• showZigzag - Show Lines value used for structural qualification or thresholds.
• showLabels - Show Labels value used for structural qualification or thresholds.
• showFibs - Show Ratios value used for structural qualification or thresholds.
• labelOffset - Label Offset value used for structural qualification or thresholds.

Strategy Example: Enter Long when buySignal is true and trendFilter == 1, ensuring trades align with dominant momentum.