The XABCD Pattern is a drawing tool available on TradingView that allows analysts to highlight various five-point chart patterns. Users can manually draw and maneuver the five separate points (XABCD). The XABCD points create four separate legs, which combine to form chart patterns. The four legs are referred to as XA, AB, BC, and CD.
There are four major XABCD chart patterns that are most common. These patterns can be either bullish or bearish. The four major patterns include: Gartley, Butterfly, Crab, and Bat.
Bullish Gartley Pattern: The pattern begins with an uptrend designated as XA. Price reverses back down at A and stops at B. The Fibonacci Retracement ratio of AB should be 61.8% of the price range of A minus X. Price reverses at B. The BC retracement should be between 61.8% and 78.6% of the AB price range (not the length of the lines). This is shown along the line AC. At C, price reverses with retracement CD between 127% and 161.8% of the range BC. This is shown along the line BD. Price D is the point to enter the market (buy) .
Bullish Butterfly Pattern: The swing from A to D should be a 127.2% or 161.8% extension of the XA line. Within the A to D swing, a valid ABCD pattern must be observed. In an ideal setup, the two triangles (XAB and BCD) should be almost equal in terms of time. If not, look for the second triangle (BCD) to be between 61.8% and 161.8% of the first triangle (XAB). A move beyond 161.8% would suggest that the bullish pattern is broken and bearish movement may be inevitable.
Bearish Gartley Pattern: The pattern begins with a downtrend designated as XA. Price reverses back up at A and stops at B. The Fibonacci Retracement ratio of AB should be 61.8% of the price range of A minus X. Price reverses at B. The BC retracement should be between 61.8% and 78.6% of the AB price range (not the length of the lines). This is shown along the line AC. At C, price reverses with retracement CD between 127% and 161.8% of the range BC. This is shown along the line BD. Price D is the point to enter the market (sell).
Bearish Butterfly Pattern: The swing from A to D should be a 127.2% or 161.8% extension of the XA line. Within the A to D swing, a valid ABCD pattern must be observed. In an ideal setup, the two triangles (XAB and BCD) should be almost equal in terms of time. If not, look for the second triangle (BCD) to be between 61.8% and 161.8% of the first triangle (XAB). A move beyond 161.8% would suggest that the bearish pattern is broken and bullish movement may be inevitable.
Public Source: XABCD Pattern — TradingView
