Alternate AB=CD Harmonic Pattern Indicator in MT4 – [TradingFinder]

The Alternate AB=CD Harmonic Pattern indicator is one of the important analytical tools in the MetaTrader 4 platform, developed with the goal of identifying the structure of harmonic patterns.

This indicator identifies the Alternate AB=CD pattern by detecting four pivot points (A, B, C, D) on the chart and displays the pattern by drawing lines.

The Alternate AB=CD pattern is usually formed in price reversal areas (PRZ) and can provide significant signals for entering or exiting trades.

Traders, by combining this indicator with other technical analysis tools, can identify bullish and bearish patterns and elevate their analyses to a more specialized and professional level.  

Table of the Alternate AB=CD Harmonic Pattern Indicator

The general specifications of the Alternate AB=CD Harmonic Pattern indicator are listed in the section below.

Bullish Pattern

On the 4-hour chart of Gold (XAUUSD), a bullish Alternate AB=CD harmonic pattern has formed. Traders who are looking to identify this type of harmonic pattern can identify this price structure on the chart using the Alternate AB=CD Harmonic Pattern indicator.

By observing point D, which is known as the potential price reversal area (PRZ), a suitable opportunity to enter a buy trade becomes available. This tool allows analysts to make more intelligent and precise decisions in the Gold market.

Bearish Pattern

On the 15-minute chart of the AUDCAD currency pair, the Alternate AB=CD Harmonic Pattern indicator has successfully identified a bearish Alternate AB=CD harmonic pattern and displayed a sell trading position to traders by drawing this pattern on the chart.

Traders who are looking to identify this type of bearish pattern can use this specialized indicator to identify a suitable entry point for selling and enter a sell trade at the appropriate time.

Settings of the Alternate AB=CD Harmonic Pattern Indicator

The settings for the Alternate AB=CD Harmonic Pattern indicator are provided in the section below.

• Minimum Length Of Wave (candle): Determines the minimum length of a wave (in terms of the number of candles);
• Num Of Previous Candle: Determines the number of previous candles to examine the market;
• Show Lines: Determines whether to display pattern lines;
• Break Pivot: Determines whether to check for pivot breakouts;
• Original pivot to broken pivot (Pipet): Determines the distance (in pipettes) between the original pivot and the broken pivot;
• Shift: Determines the horizontal shift of the lines;
• Bullish Pattern: Determines whether to display bullish patterns;
• Bearish Pattern: Determines whether to display bearish patterns;
• Style Of Line: Determines the line type;
• Width Of Line: Determines the width of the lines;
• Custom Color Lines (Bearish Harmonic): Determines the color for bearish harmonic pattern lines;
• Custom Color Lines (Bullish Harmonic): Determines the color for bullish harmonic pattern lines;
• Custom Color Of Text: Determines the color for the explanatory text on the chart.

Summary

The Alternate AB=CD Harmonic Pattern indicator is known as one of the advanced trading strategies in the Forex market.

By drawing the Alternate AB=CD pattern, it enables traders to better understand the market structure and the price movement structure and analyze market behavior with greater accuracy.

This tool identifies critical areas called price reversal areas (PRZ) by identifying four key points (A, B, C, D) and determining Fibonacci retracement and extension ratios between them, where the probability of price trend reversal increases.

By using this indicator, traders can place their buy or sell positions at points with lower risk and a higher probability of success.