ABC Trading Concept

5월 22일

Overview
ABC Trading Concept is a wave- and trend-based market structure indicator that identifies shifts in price behavior by analyzing impulse and correction patterns. It introduces a unique calculation method—Price-MAD-ATR Bands—to detect wave formation, trend reversals, and potential trade zones with dynamic adaptability to volatility and trend strength.

🔧 Core Logic and Calculations

1. Price-MAD-ATR Bands
At the heart of the script is a proprietary channel system based on:

• MAD (MA Difference): Difference between fast and slow moving averages.
  
• ATR (Average True Range): Measures current market volatility.
  

The bands are plotted as:

• Upper Band = Price + MAD × ATR
  
• Lower Band = Price − MAD × ATR
  

A breakout beyond these bands signals the formation of a new wave (up or down).

2. Wave Formation (A and B Waves)

• Standard Method: A new wave forms when price breaks through a Price-MAD-ATR Band.
  
• Extreme Method: A wave also forms when price breaks the passive extremum of an existing wave.
  
• Wave A may be generated by a correction breaking the Reversal Point.
  
• Wave B can be configured to form in three modes, including breakouts of internal or boosted counter-corrections.
  

3. Trend Structure

• A trend is built from waves and includes:
  
• Direction, active/passive extremums
  
• Impulses and Corrections (each tracked independently)
  
• Reversal Point: Defined by a boosted correction breakout
  
• G-Point: Set at the active extremum of Wave A
  
• Vic Line: A trendline derived from previous correction extremums (optional)
  

When price breaks above the G-point, a new trend may be initiated.

4. Correction Boost Logic
A correction becomes boosted when price exceeds a configurable multiple of the correction’s range. Boosted corrections define key zones and enable the creation of Reversal Points and Wave A setups.

5. Vic Sperandeo Line
Optionally used to enhance trend structure confirmation. Drawn between extremums of previous corrections and may act as a secondary condition for forming Wave A.

6. SL/TP Level Calculation
At the start of a new trend, SL and TP levels are automatically plotted based on:

• The extremums of Wave A or Wave B (selectable)
  
• Configurable ratios (e.g., 1.382, 2.0, 2.618 for TP levels)
  

📊 Visual Elements on the Chart

• Bands: Price-MAD-ATR Bands as adaptive upper/lower thresholds
  
• Waves: Yellow zigzag lines
  
• Trends: Blue (or purple for hard-type) trendlines with directional arrow
  
• Reversal Point: Dashed horizontal line (starts from key correction breakout)
  
• Correction Zone: Shaded rectangle from boosted correction range
  
• Vic Line: Dashed support/resistance trendline
  
• TP/SL Levels: Dotted horizontal levels, plotted at trend origin
  

⚙️ Inputs and Customization
You can adjust:

• ATR and MA parameters
  
• Band width multiplier
  
• Boost strength threshold for corrections
  
• SL/TP levels and logic (by Wave A or B)
  
• Vic Line usage and visual styles for each element
  

Over 40 configurable settings are available to adapt the indicator to your strategy.

🧠 How to Use

• Look for a new trend start when G-point is broken.
  
• Use Wave A/B structure and Reversal Point for setup planning.
  
• Correction Zones help identify re-entry areas or stop placement.
  
• Follow TP/SL levels to manage exits with structural targets.
  
• The Vic Line can act as dynamic support/resistance in context.
  

The indicator provides analytical insights—it does not generate automatic signals.

💡 What Makes It Unique
Unlike typical wave or Zigzag indicators, ABC Trading Concept introduces a volatility-adjusted wave logic using Price-MAD-ATR Bands. This method combines trend momentum (MA differential) with market volatility (ATR), offering a more flexible and noise-resistant structure recognition system. The integration of Wave A/B logic, dynamic reversal zones, and Vic Line validation makes it a comprehensive tool for structural traders.

⚠️ Disclaimer
This tool is for technical analysis and educational purposes. It does not guarantee profit or forecast market direction. Trading involves risk—use this script as part of a larger strategy with proper risk management.

11월 10일

릴리즈 노트

🆕 Update: Risk Analysis Module Added

In this version, we’ve introduced a new risk analysis module that makes the ABC Trading Concept Indicator even more adaptive and data-driven.

🔍 Key improvements:

Added position risk analysis module
→ Automatically adjusts position size (in lots) according to real-time statistical deviations of corrections, impulses, and trends.

Added statistical control parameters
→ You can now set the number of elements used for average calculations and a statistical coefficient that defines the sensitivity of position size adjustment.

Improved internal logic and performance optimization.

Minor visual and stability enhancements.

💡 What it means for traders:

The indicator now helps you align your position sizing and risk management with real market behavior, providing a more realistic and flexible approach to trade control.