ABCD Harmonic Pattern indicator on Trading View - Free - [TFLab]

The ABCD Harmonic Pattern is a technical analysis tool to identify potential price reversal points. This pattern consists of four main points: A, B, C, and D.

In this structure, the two waves, AB and CD, move in the same direction, while wave BC acts as a corrective wave in the opposite direction.

A bullish signal in this indicator is shown with a green arrow, and a sell entry signal (Sell) is marked with a red arrow.

Indicator Table

Indicator in an Uptrend

In the 1-hour Bitcoin (BTC) chart, the indicator initially identifies the bearish wave AB, followed by the corrective bullish wave BC, which covers a range between 0.861 and 1.162 of wave AB.

After wave BC ends, the bearish wave CD begins, and the price reaches point D. Upon identifying this zone, the indicator issues a Buy entry signal.

Indicator in a Downtrend

The price first forms the bullish wave AB in the 30-minute price chart of the GBP/USD currency pair. Then, wave BC moves downward, retracing between 0.86 and 1.154 of wave AB. Subsequently, wave CD forms upward, reaching point D. Point D is the PRZ (Potential Reversal Zone), where the price will likely reverse downward.

At this point, the indicator identifies the zones and displays a Sell entry signal to traders.

Indicator Settings

• ZigZag Pivot Period: The default pivot calculation period for ZigZag is set to 3;
• Show Valid Format: Display only valid patterns;
• Show Formation Last Pivot Confirm: Show confirmation of the last pivot formation;
• Period of Formation Last Pivot: The default value for the last pivot formation is 2;
• Show Bullish Pattern: Display a bullish pattern;
• Show Bearish Pattern: Display bearish pattern;
• Color Bullish Pattern: The default bullish pattern color is blue;
• Color Bearish Pattern: The default bearish pattern color is red;
• Width Line: Default line thickness is 1;
• Label Size: Text label size;
• Switching Colors Theme Mode: Chart background theme;
• Alert: Alert notification when a pattern forms;
• Alert Name: Name of the alert;
• Message Frequency: Custom message content;
• Show Alert Time by Time Zone: Display alert time based on the time zone.

Conclusion

The ABCD Harmonic Pattern Indicator on TradingView is an advanced tool for automatically identifying harmonic ABCD patterns and pinpointing potential price reversal zones (PRZ).

This indicator uses Fibonacci ratios for high-accuracy identification of bullish and bearish patterns.

It also allows customization of colors, line thickness, and label sizes for better visualization. Traders can use this tool to analyze reversal points and make informed trading decisions.