drpama wrote:What is the pattern of ABCD? Should it be 2 parallel lines? In your BPI chart, the two lines positioned like a triangle with apex. Whats the significance of this ABCD? Where do we plot the BUY trigger? Thanks
the pattern of ABCD is ...ABCD? hehe it's called AB=CD because the length of point A to point B is of the same length of point C and point D. Or you could just imagine it as a wave.
If point D is reached, that means, the pattern is complete. You should then look for buying or shorting opportunities. Take time to analyze what I did with PEP. It's not perfect but It gave me a hint that I should start looking for buying opportunities.
Using AB=CD, you can calculate when point D will be reached. In the case of BPI, It's just a potential AB=CD. It does not necessarily mean that if will form a perfect AB=CD. The way I trade potential AB=CD pattern is, if bullish, I buy at C and sell at D. Gaya ng kwento ko sa itaas. C could be at 38.2, 61.8, 78.6.
hmmm This is not easy to explain ha ha ha kasi nahaluan ko na ng fibonnacci and I'm actually on my way to explain when a buy signal is triggered. Could be based on priace action or trendline break.
eto try to analyze what I did with SMCB. My buy decision was based on price action. When I say price action, it is comprised of candlesticks forming Higher highs (HH), Lower Lows(LL).
nagiging complicated na ha ha baka mabulunan kayo. here's SMCB's chart: