The was one of the many developed by H.M which were then fine tunes with the introduction of the Fib rations by Scott Carney and Larry Pesavento. Visually, the looks similar to the 222 pattern, especially the Fib ratios between the .
The can be found near key market reversal points, usually at intermediate highs and lows. The appearance of the indicates reversals when it is validated. The chart below gives an illustration of the and patterns.
* The therefore is an easy to trade which offers a highly reliable trade probability. The risk/rewards may of course vary depending on how far the CD leg extends and therefore traders should be looking to trade only those patterns that offers a lower risk and higher reward trades.