Each pattern has both a bullish and bearish version.

Bullish patterns help identify higher probability opportunities to buy, or go "long."

Bearish patterns help signal opportunities to "short," or sell.

Each turning point (A, B, C, and D) represents a significant high or significant low on a price chart.

These points define three consecutive price swings, or trends, which make up each of the three pattern "legs."

These are referred to as the AB leg, the BC leg, and the CD leg.

LEG AB = LEG CD.

@CryptoTrades #education #abcdpattern

Trend is arguably the most important thing you need to be able to identify in the markets.

When you know the trend of price, you know where price is heading next most of time!
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Noticed how we said most of the time...
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That’s because knowing how to identify trend is NOT everything in trading and you will NOT get very far if you stop learning once you can find the trend of price.
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Once you know how to identify trends, you will be able to create multiple trading strategies based on them!
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@CryptoTrades #education #identifyingtrend