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If you are feeling particularly aggressive, when this scenario occurs you can exit your former trade and take a new trade in the direction of the new ABC pattern. It can be used to capture both upside and downside moves on all time frames. When a buy pattern occurs it signals a strong likelihood that there is another move higher coming, whereas a ABC sell pattern indicates another move lower is coming. No strategy works all the time, but it can help you stay on the right side of the market, and also spot when it is turning against you.