AB=CD Harmonic Pattern Indicator in MetaTrader 5 – [TFLab]

The AB=CD harmonic indicator in MetaTrader 5 is used as a specialized tool for identifying harmonic patterns.

This indicator displays the AB=CD harmonic pattern on the price chart by determining key points A, B, C, and D and Fibonacci ratios, and it specifies the price reversal area (PRZ).

Traders can identify sensitive market points and make better decisions for entering or exiting trades through technical analysis and this tool.  

Table of the AB=CD Harmonic Pattern Indicator

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

Bullish Pattern

In the 4-hour timeframe of the AUDJPY currency pair, a bullish AB=CD harmonic pattern has been observed, which can be considered as a warning for the start of a bullish price trend.

By using the AB=CD harmonic pattern indicator, traders can recognize this pattern on the chart and, by identifying point D, which is considered the price reversal area (PRZ), proceed to enter a buy position.

Bearish Pattern

On the 1-hour chart of the AUDCAD currency pair, the AB=CD harmonic pattern indicator has succeeded in identifying a bearish AB=CD harmonic pattern structure and has drawn it on the chart after detecting the pattern.

This harmonic pattern usually appears when the price is on the verge of changing direction from a bullish to a bearish trend and can act as an early warning for the start of a bearish trend.

After the pattern is completed, the price has started to fall. By paying attention to point D, which is known as the price reversal area (PRZ), traders will be able to identify suitable selling opportunities.

Settings of the AB=CD Harmonic Pattern Indicator

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

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

Summary

The AB=CD harmonic pattern indicator is a harmonic pattern identification tool that automatically displays the AB=CD pattern on the price chart by detecting pivot points and examining Fibonacci ratios.

This indicator, as a practical trading strategy, enables active traders in the Forex market to identify potential price reversal areas (PRZ) and perform more specialized and professional analyses on the chart.