81 Perfect ABC Setups One of my favorite patterns is called trading 'Perfect ABC pattern'. ABCs occur in all time-frames and all-instruments. A Perfect ABC setup is explained here. Using Fib. Grid structure on trading charts along with ABC and other pattern detection methods. A Perfect ABC (Bullish) occurs when price is in sell off mode and makes 'A' pivot below the lower Fib. Band, 'B' above or near the Mid-Fib.Band, and 'C' below the Mid-Fib Band with at least 50% retracement. When this perfect 'ABC ' is detected, I will start watching the price-action from 'C' levels to show the reversal. I also plot Entry and Stop levels from 'C'. When price closes above the 'EntryLevel' (or MidFib Band, in case very close), that is my long entry in to my trade. I place stops below the 'C' level to protect my trade. Once I entered Long trade, my typical targets are near 100 to 127% of AB levels. Depending on the size of ABC, multiple targets are used to exit the trade.
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