ABC Indicator

ABC Indicator is a chart-analysis tool for MetaTrader 5 that breaks price movement into trends, impulses and corrections and then labels waves A, B and C. It also draws suggested stop-loss and take-profit levels when a new trend is identified, so you can see the structure and the reference points on one chart.

How it works

The indicator starts with a MACD-style pair of moving averages and ATR-based bands. Crossings of the averages, filtered by the size of the market move relative to ATR, are used to find waves. Requiring a minimum range helps to ignore small oscillations that would otherwise create noisy signals.

Trend, impulses and corrections

Once a trend direction is established, the tool splits the movement into impulses and corrections and tracks fixed and dynamic extremes. A trend change point, which the vendor calls the G-point, is monitored, and a break of that point is used to confirm that a reversal may be under way.

Turn points and waves A, B and C

• A turn point is set inside the range of a completed correction, using a retracement level you choose.
• Wave A is identified either from the wave alone or when price breaks the turn point.
• Wave B can be based on the wave alone, a break of the counter-correction, or a break of a boosted counter-correction.
• A correction boost measures how significant a correction is, and turn points can be updated from boosted corrections.

Vic Sperandeo trendline

The indicator can draw a trendline between the trend's fixed extreme and the extreme of the latest correction. You may use this line as an additional condition when the G-point and the A and B waves are formed.

Stop-loss and take-profit levels

When a new trend appears, potential stop-loss and take-profit levels are plotted from the extremes of wave A or wave B, depending on your input choice. These are reference levels only.

Markets and timeframes

The indicator reads price data, so it can be attached to any symbol and timeframe your MT5 broker provides. Results will look different on each instrument because ATR and swing sizes vary. Test on several timeframes and make sure the chart has enough loaded history.

Settings

The exact default values are not listed here, so check them in the input window after attaching the indicator. The main groups are shown below.

Risk

Installation

1. Download the indicator file from your account after purchase.
2. In MetaTrader 5, choose File, then Open Data Folder.
3. Open the MQL5 folder, then Indicators, and copy the file into it.
4. Restart MT5 or right-click Indicators in the Navigator and choose Refresh.
5. Drag ABC Indicator onto a chart, review the inputs and confirm.

Try it on a demo account first so you can learn how the waves form and adjust the inputs to your own method.