UPDATE: This was a bastard of a . I shouldn't have posted it being in such a hurry. It did satisfy the 1.618 of the BC leg and the ABCD, but another of the requirements is a .886 of XA- it didn't have. That being said, ultimate probability which comes from "perfectly formed" patterns doesn't mean you should ignore the over-arching implications if every requirement isn't perfectly met. Case-in-point, sharp reversal $2 off of our target. That of course means I didn't get my entry, but all part of the learning process. For everyone (myself included) here are the "perfect" requirements:
- A .886 XA retracement to the D point is necessary.
- The D point cannot exceed the X point - if it does, then the pattern is invalid.
Other Fibonacci levels should be closely grouped in the Potential Rerversal Zone
An extended where the CD leg is 1.27 of the AB leg. Although, an where AB and CD are the same length is acceptable, but is a minimum for the pattern to be valid.
- Minimum 1.618 BC extension to the PRZ. Its preferable if the BC extension is 2.0. Could also be as much as 2.618.
The B point retracement must be less than .618 to be a valid pattern. e.g. B could be 0.5 or . of the XA.