![]() ![]() Doing so will still give us an approximate range of where the ABCD pattern may complete-both in terms of time and price. As a result, we use some key Fibonacci ratio relationships to look for proportions between AB and CD. These points define three consecutive price swings, or trends, which make up each of the three pattern "legs." These are referred to as the AB leg, the BC leg, and the CD leg. Bullish patterns help identify higher probability opportunities to buy, or go "long." Bearish patterns help signal opportunities to "short," or sell.Įach turning point (A, B, C, and D) represents a significant high or significant low on a price chart. Timeframes-provide a stronger trade signal.Įach pattern has both a bullish and bearish version. ![]() Convergence of several patterns-within the same timeframe, or across multiple.Highest probability trade entry is at completion of the pattern (point D).All other patterns are based on (include) the ABCD pattern. ![]() On any timeframe (intraday, swing, position), and in any market condition (bullish, bearish, or range-bound markets)
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