Trading Video On ABCD Pattern Explained - $AMC Stock Chart

Knowing how to identify the ABCD Pattern in a stock's chart is not especially difficult. However, this fundamental pattern can indicate important signals to a day trader or swing trader. Robert Knight, MBA, found the ABCD pattern in the $AMC Chart. This article includes a short video and a transcript.

This is a video on the ABCD pattern. So $AMC this morning...we caught this for a nice move earlier today and got up to this area here 26.35 area, 26.40 and topped up in here and then failed and pulled back. So this is what we call the ABCD pattern. Here's your A. And then a pulled-back B bottoms down in here, and then it pops up midday and pulls back.

So here's where you accumulate. [This is] the C part of the pattern. So A, B, C accumulate in here. And then when it gets up to the high of [the] day, you sell half your position. That's your D break out of that and then let the rest run. But when it gets up to high [of the] day, you sell half your position. You can see that's what happened here.

Double topped. Everybody bails out. But then it pulls back. Hold support here [at] twenty-five and a half, then...we could see it go back up again. So, A, B, C accumulate, D--sell half your position at the high of day. And then let the rest run, if it goes. If it pulls back and maybe breaks below 25.6, you bail out with the balance of the trade, but here, if you were accumulating at around 25, that's a pretty nice trade. You know, a dollar move, a dollar 50 move to a 26 and a half.

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