ABCD Harmonic Pattern

The ABCD pattern is a Harmonic Pattern.

The lines AB and CD are known as the legs while BC is called the correction or retracement.

If you use the Fibonacci retracement tool on leg AB, the retracement BC should reach the 0.618 level. Next, the line CD should be the 1.272 Fibonacci extension of BC.

All you have to do is wait for the entire pattern to complete (reach point D) before taking any short or long positions.

Additional Rules

• The length of line AB should be equal to the length of line CD.
• The time it takes for the price to go from A to B should be equal to the time it takes for the price to move from C to D.

META

Status:: #wiki/notes/mature
Plantations:: Harmonic Patterns - 20230221102716
References:: Babypips