ABC PATTERN Trading Guide
Last updated: March 24, 2026
The ABC Pattern indicator is a powerful structure scanner that uses ZigZag logic to automatically identify and project A-B-C price patterns. It also calculates the precise retracement Fibonacci ratios separating each leg of the pattern.
What does the indicator show?
- Zigzag Lines: The primary point-to-point drawing structure connecting structural pivot highs and lows.
- A/B/C Labels: Letters explicitly marking the swing pivots of the last 5 confirmed patterns across the visible chart.
- Fibonacci Ratios: Text displays indicating the exact retracement depth ratios of the A-B leg relative to the 0-A leg, and B-C relative to A-B.
Key Settings
- ZigZag Depth: The minimum length required between swings to establish a new structural pivot.
- Deviation %: The minimum percentage price move required to register an opposing pivot.
- Show Elements: Easy toggles available to show/hide the structural ZigZag lines, alphabet labels, and Fibonacci ratios independently.
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. Pattern Signals
Signals are generated exactly upon the confirmation bar that validates the final "C" Point of the pattern.
ABC Buy Pattern— A signal trigger that pulses true when an "ABC_Down" pattern is fully confirmed (price completed an ABC correction downwards).ABC Sell Pattern— A signal trigger that pulses true when an "ABC_Up" pattern is fully confirmed (price completed an ABC correction upwards).
Strategy Example: A solid mean-reversion algorithm could take a Long position exclusively when the ABC Buy Pattern is_true.