ABC Indicator

geebeeaye

Member
ABC Indicator
I welcome any suggestions or help in cleaning up or combining the studies. Also your thoughts on the scan? this is typically meant for mid morning or later in the day trades.

Some things I would l appreciate help with adding:
  1. Add labels A and B to the bars where they occurred. Possibly a C to the current price
  2. Add a trend line between A, B and C
Conditions:
A (Gap Up)
HOD is greater than OPEN by at least 10%
https://tos.mx/1nIevBp
Study 1 - this plots, OPEN, A(HOD), LOD, and Current Price

B (Healthy Pullback)
Lowest Low AFTER HOD is at least 50% pullback from HOD to OPEN
https://tos.mx/lFK0TH9
Study 2 - this plots B (Lowest Low AFTER HOD) thanks to @SleepyZ

C (Price within range of VWAP)
plot data = Between(close, reference VWAP()."VWAP" * .97, reference VWAP()."VWAP" * 1.03);
https://tos.mx/Qa1QxLL
Scan - Identifies stocks at C in this pattern

I welcome any suggestions or help in cleaning up or combining the studies. Also your thoughts on the scan? this is typically meant for mid morning or later in the day trades.

Some things I would l appreciate help with adding:
  1. Add labels A and B to the bars where they occurred. Possibly a C to the current price
  2. Add a trend line between A, B and C

qbdjMSD.jpg


Anyone want to help add the finishing touches?
jVCjKzO.jpg
 
Last edited by a moderator:
These 2 parts of the scan don't seem to be working as results don't match. Are the formulas correct?


## B is at least a 50% retracement from A##
LowestLowAfterHOD()."lowday" is less than (ABCDPLOTS()."HOD" - ((ABCDPLOTS()."HOD" - ABCDPLOTS()."OPEN") / 2))

## Current price has reclaimed at least 50% of the retracement##
ABCDPLOTS()."PRICE" is greater than ((ABCDPLOTS()."HOD" - lowestLowAfterHOD()."lowday") / 2) + lowestLowAfterHOD()."lowday"
 
Frankly, I don't see what is the value of such patern? Perhaps, someone more experienced can explain.

Explanation of the ABC Indicator
ABC Corrections is a chart pattern used to buy pullbacks.

Imagine a runner in a race who briefly slows down before picking up speed again.
Similarly, a stock may experience a short-term dip in price after a period of growth or upward movement. This dip can be seen as an opportunity to buy the stock at a slightly lower price as it begins back onto its upward trend.

It is a basic pattern taught in chart analysis.
 
Last edited:

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Similar threads

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
315 Online
Create Post

Similar threads

Similar threads

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top