Chart pattern: Difference between revisions

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{{Short description|Pattern within a chart when prices are graphed}}

[[File:Triangle-ascending.jpg|thumb|Ascending triangle pattern]]

A '''chart pattern''' or '''price pattern''' is a [[pattern]] within a [[chart]] when prices are graphed. In stock and [[commodity market]]s trading, chart pattern studies play a large role during [[technical analysis]]. When [[data]] is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals.

Line 37 ⟶ 38:

Traders use the Potential Reversal Zone (PRZ) as an important level of support/resistance in their trading and price action strategy.

{{Short description|A structural technical analysis pattern derived from the classic ABCD model}}

'''Geometric ABCD Pattern''' is a technical analysis structure used in financial trading, derived from the classic [[ABCD pattern]] but redefined through geometric alignment. Introduced in 2025 by financial trading educator Kenny Simon, the pattern emphasizes symmetry, intersection points, and precise structural alignment, rather than relying purely on Fibonacci or price projections.

== Structure and Definition ==

The Geometric ABCD Pattern retains the traditional four-point structure—A, B, C, and D—but adds a key diagonal vector drawn from Point A to Point D. This line intersects the leg from Point C to Point D, forming a unique pivot known as the **Centroid**. The centroid is used as a potential activation or trigger point for entry decisions.

Only the C-to-D leg is traded, and Point D serves as both the projected exit zone and a structural anchor.

== Validation and Fibonacci Criteria ==

To assess the validity of a potential pattern:

* The distance of leg AB must equal CD (forming a geometric quadrilateral)

* The retracement of Point C from A–B must meet or exceed the 38.2% [[Fibonacci retracement]] threshold

- If the retracement is less than 38.2%, the pattern is considered invalid

== Pattern Classification ==

The pattern is classified as:

* **Bullish Geometric ABCD Pattern** – Centroid appears below the C–D leg; D is projected upward

* **Bearish Geometric ABCD Pattern** – Centroid appears above the C–D leg; D is projected downward

== Geometric Pattern Analysis (GPA) ==

The development of the Geometric ABCD Pattern led to the broader methodology known as **Geometric Pattern Analysis (GPA)**, which integrates pattern recognition with structure-based decision frameworks. GPA is a component of the manual trading system known as the **Geometric Trading Method (GTM)**, which incorporates the [[P.R.I.C.E]] trade plan model developed by Simon.

== Certification and Professional Application ==

Graduates who complete the Geometric Trading Pattern certification under Bretton Financial Trading Academy are awarded the title of **Geometric Pattern Strategist (GPS)**, indicating proficiency in GPA, GTM, and manual structure-based trading strategies.

== See also ==

* [[Technical analysis]]

* [[Chart pattern]]

* [[Fibonacci retracement]]

* [[Support and resistance]]

== References ==

<references>

<ref name="SimonGTP2025">Simon, Kenneth. "Decoding the Geometric Trading Pattern: A Structure-Based Approach to Precision Entries." Medium. June 2025. [https://medium.com/@profkenny/decoding-geometric-pattern-structure-trading]</ref>

</references>

[[Category:Technical analysis]]

[[Category:Chart patterns]]

[[Category:Trading strategies]]

== Candlestick pattern ==