The AB=CD pattern is easy to identify on charts and consists of 2 equivalent price legs. It has specific Fibonacci measurements of each point within its structure, eliminating room for flexible interpretation. The C point must retrace to either a 0.618 or 0.786 and the BC projection is either 1.27 or 1.618. When the BC projection and the AB=CD completion converge closely and define a small area, the chance of a reversal increases.
The first target would be the 382 retracement of AD and the second target the 618 retracement of AD. A common stop level is behind a structure level beyond the D point. Conservative traders may look for additional confirmation before entering a trade, for instance an aligning RSI value or a specific candlestick pointing at a reversal. TradingView has a smart ABCD Pattern drawing tool that allows users to visually identify this pattern on a chart. There are several variations, based on CD being an extension of AB such as the 1.27 AB=CD or the 1.618 AB=CD pattern.
Kommentera
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Re Entry >> TYPE II Pattern
Kommentera
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Kommentera
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Double Bottom - Retest of the 127% Extension
Kommentera
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Further Confirmation of AB=CD completion is this Bullish Shark on 1H
The only way is further down until BTC completes the bubble cycle. I think you’re in denial. The downfall will be stronger here onwards.
slrocheleau
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@andysaw, I'm not in denial. You must be new to trading. Harmonics are for pullbacks i.e the market has over extended and time for a correction. You may need to do some research of your own. I never said this was the bottom of BTC. I have BTC going down to 3k long term.Like I said I trade retracements and extensions. That's what harmonics are for... Take care
slrocheleau
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Both trades successful. I guess I really was just in denial lolol @andysaw,
slrocheleau
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Further Confirmation of the AB=CD completion is this Bullish Shark @ the 127% XD Extension