You are on page 1of 14

SUB

a b c d
PATTERNS

How to Use Sub abcd Patterns During Any


Trending Market Direction
WHAT IS A SUB ABCD
PATTERN?

A
s with the primary ABCD pattern, the Sub
abcd pattern from B to C will also have an
ab boundary. This is where the Bulls and
the Bears will fight for control of the Sub abcd
retracement. The Bears will try to regain control
by pushing the price down beyond the Sub b
establishing a lower low. The Bulls will try to take
back control from the Bears by pushing the price to
a new high that is higher than the Sub a.

B a

C d
A
Gartley Pattern BULLISH

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


Let’s See What These SUB
ABCD PATTERNS Look Like

GARTLEY PATTERN BULLISH


Sub ab = .618 of AB.
Sub bc = .618 - .786 retracement of ab.
Sub cd = 1.27 - 1.618 of bc.
Sub d should correlate to the .786 AB retracement.

The Sub d should now identify the Primary C.

B a
.618 = .86 = 86%
62%
c .786 = 79%
.618 = 62%
.500 = 50%
.382 = 38%

1.18 = 118%
b
= 62% 1.27 = 127%
.618 1.618 = 162%
%
.786 = 79 C d

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


BAT PATTERN BULLISH
Sub ab = .382 - .50 of AB.
Sub bc = .618 - .86 retracement of ab.
Sub cd = 1.618 - 2.618 of bc.
Sub d should correlate to the .86 AB retracement.

The Sub d should now identify the Primary C.

B a
.618 -.86 c .86 = 86%
.786 = 79%
.618 = 62%
.500 = 50%
.382 = 38%

1.18 = 118%
b
50 1.27 = 127%
2 -.
.38 1.618 = 162%
.86 = 86%
C d 2.618 = 262%
A

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


CYPHER PATTERN BULLISH
Sub ab = .382 - .618 of AB.
Sub bc = 1.18 - 1.27 expansion of AB.
Sub d should correlate to the .786 Ac retracement.

The Sub d should now identify the Primary C.

1.27 = 127%
c
1 . 2 7 of AB 1.18 = 118%
B a 1.18 -

.382 = 38%

.500 = 50%
B
ofA b
8 .618 = 62%
61
2 -. .786 = 79%
.38 .86 = 86% d C
f Ac
.786 o

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


BUTTERFLY PATTERN BULLISH
Sub ab = Less than .618 of AB.
Sub bc = .382 - .86 retracement of ab.
Sub cd = 1.618 - 2.618 of bc.
Sub d should correlate to the 1.27 – 1.618 AB retracement.

The Sub d should now identify the Primary C.

The A is broken with the Butterfly Pattern.

B a

.382
- .50 .86 = 86%
c .786 = 79%
.618 = 62%
.500 = 50%
.382 = 38%

1.18 = 118%
b
2- .50 1.27 = 127%
.38 1.618 = 162%

1.27-1.618
A 2.618 = 262%
A d

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


GARTLEY PATTERN BEARISH
Sub ab = .618 of AB.
Sub bc = .618 - .786 retracement of ab.
Sub cd = 1.27 - 1.618 of bc.
Sub d should correlate to the .786 AB retracement.

The Sub d should now identify the Primary C.

A
.786=79% 1.618 = 162%
C d
.618 1.27 = 127%
=62
%
b 1.18 = 118%

.382 = 38%
.500 = 50%
.618 = 62%
.618 =62% c
.786 = 79%
.86 = 86%

B a

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


BAT PATTERN BEARISH
Sub ab = .382 - .50 of AB.
Sub bc = .618 - .86 retracement of ab.
Sub cd = 1.618 - 2.618 of bc.
Sub d should correlate to the .86 AB retracement.

The Sub d should now identify the Primary C.

A
.86=86%
C d 2.618 = 262%

.38
2-.
50 1.618 = 162%
1.27 = 127%
b 1.18 = 118%

.382 = 38%
.500 = 50%
.618 = 62%
.786 = 79%
8 6
.618-. .86 = 86%
c

B a

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


CYPHER PATTERN BEARISH
Sub ab = .382 - .618 of AB.
Sub bc = 1.18 - 1.27 expansion of AB.
Sub d should correlate to the .786 Ac retracement.

The Sub d should now identify the Primary C.

A
.786 o
.38 f Ac
2-
.618
of C d
AB
.86 = 86%
b .786 = 79%
.618 = 62%

.500 = 50%

.382 = 38%

B a 1.18-1
.27 o
f AB 1.18 = 118%
c 1.27 = 127%

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


BUTTERFLY PATTERN BEARISH
Sub ab = Less than .618 of AB.
Sub bc = 3.82 - .86 retracement of ab.
Sub cd = 1.618 - 2.618 of bc.
Sub d should correlate to the 1.27 - 1.618 AB retracement.

The Sub d should now identify the Primary C.

The A is broken with the Butterfly Pattern.

A d
A 1.27-1.618 2.618 = 262%

1.618 = 162%
.38
2-5
0

1.18 = 118%
1.27 = 127%
.382 = 38%
.500 = 50%
.618 = 62%
.50 .786 = 79%
.3 82 - c
.86 = 86%

B a

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


So What Did You Learn?

J
ust like when you were in grade school, you need to
understand your ABCDs.

Here’s a quick overview to help you understand the


information in this guide:

SUB ABCD patterns exist within


primary ABCD patterns, where
they also have an AB boundary
where Bulls and Bears fight
for control of the Sub ABCD
retracement. Bears attempt to
push the price down beyond the
Sub B to establish a lower low,
while Bulls try to regain control
from Bears by pushing the price
to a higher high than the Sub A.

There are both Bullish and


Bearish Sub ABCD patterns
associated with primary patterns including the GARTLEY
PATTERN, the BAT PATTERN, the CYPHER PATTERN and the
BUTTERFLY PATTERN.

In this guide, you’ve seen examples of these Bullish and


Bearish Sub ABCD patterns, with indications of how trades

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


should follow these indicators. By understanding the Sub
ABCD patterns, you should have more information to help you
determine the position of the Primary C in all of the primary
patterns listed above. The Sub ABCD patterns are trends
within trends, and they can help you stay on track with your
trading no matter which way the markets are trending.

HAVE ANY QUESTIONS? Send them our way by heading to


our Facebook pages and we’ll do our best to answer them as
quickly as possible!

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


FREE TICKET:
TACTICS FOR HIGHER RETURNS WITH FOREX TRADING

1 Now that you have mastered one market indicator, it’s


time to expand your horizons. There are a handful of
market indicators that could help you detect market shifts
in direction more quickly, trade trends and find potentially
profitable entry and exit points like a pro.

2 To learn more indicators and to get an up-to-the-minute


market review update, attend an upcoming webinar.

REGISTER NOW

Copyright ©2019 Market Traders Institute, Inc. | 1-866-787-8558 | MarketTraders.com


MARKET TRADERS INSTITUTE
Creating Successful Traders
That’s our vision. Often referred to as MTI, Market Traders
Institute Inc., is a financial education and training company
based in the Orlando suburb of Lake Mary, Florida. We provide
education to beginner, intermediate, and advanced traders.

For many, MTI is synonymous with high standards, effective


teaching, sound instructional materials, and a dedicated
commitment to performance-oriented results.

For more information, visit MarketTraders.com.

Copyright ©2019 Market Traders Institute, Inc.

All investments involve risk, and the past performance of a security, industry, sector,
market, financial product, trading strategy, or individual’s trading does not guarantee future
results or returns. Investors are fully responsible for any investment decisions they make.
3900 Millenia Blvd. Such decisions should be based solely on an evaluation of their financial circumstances,
Suite 200 investment objectives, risk tolerance, and liquidity needs.
Orlando, FL 32839
Ph: 1-866-787-8558 The information contained in this cheat sheet does not constitute financial advice or a
MarketTraders.com solicitation to buy or sell any securities of any type. MTI will not accept liability for any
loss or damage, including without limitation any loss of profit, which may arise directly or
indirectly from use of or reliance on such information.

Please read our RISK DISCLAIMER, GENERAL DISCLAIMER and PRIVACY POLICY for more
information.

You might also like