This article has been translated from English to Gen Z Slang.

The ABCD

Alright fam, let’s kick off this sesh with the most chill harmonic pattern. 🤓 What’s more basic than the good old ABCs, ya know?

We’ll just sneak in another letter at the end (cuz we’re extra like that), and voila, we’ve got the ABCD chart pattern! That was a breeze! 🎉

To spot this bad boy, all you need are some ultra-sharp hawk eyes 👀 and the ever-handy Fibonacci chart tool.

In both the bullish and bearish scenes of the ABCD chart pattern, lines AB and CD are dubbed the legs while BC's called the correction or retracement.

If you whip out the Fib retracement tool on leg AB, the retracement BC should hit the 0.618 mark. Next up, line CD should be the 1.272 Fib extension of BC. 💪

Simple, right fam? Just vibe and wait for the full pattern to finish the epic journey to point D before diving into any short or long decisions.

Bearish ABCDBullish ABCD

But if you wanna be super extra about it, here’s some bonus rules for a top-tier ABCD pattern:

  • The length of line AB ought to mirror the length of line CD.
  • The time it takes for the price to cruise from A to B should be equal to the time it takes to move from C to D.

Three-Drive

The three-drive pattern is kinda like the ABCD vibe but it rolls with three legs (aka drives) and two corrections or retracements. 🚗💨

Easy peasy! In fact, this three-drive pattern is like the grandpa of the Elliott Wave pattern. 🤓

As always, keep those hawk eyes sharp, grab your Fibonacci tool, and pack a lil smidge of patience for this one.

Bearish Three-DriveBullish Three-Drive

As you peep from the graphs, point A should be the 61.8% retracement of drive 1. Likewise, point B should hit the 0.618 retracement of drive 2.

Then, drive 2 should flex the 1.272 extension of correction A, and drive 3 should nail the 1.272 extension of correction B. 💪

By the time the full three-drive pattern is vibing, that’s your cue to hit play on your long or short trade.

Typically, when the price hits point B, you can already set those short or long deets at the 1.272 extension to keep your FOMO in check!

But first, make sure these rules are holding up:

  • The time it takes the price to level up drive 2 should be the same as for drive 3.
  • Also, the time for retracements A and B to party should match.