The lightning-fast pattern:
The AB = CD pattern is one of the basic patterns and was first discovered by Gartley in a book he published in 1935 entitled Profits in the Stock Market (also described as the lightning fast pattern).
In this pattern, the line connecting A and B represents the first price movement, and after the price makes a short correction move from point B and C, the pattern completes the line between C and D, which is the same line connecting AB with equal length.
Although the price movement is not always completely equal, the length of the two lines in the AB=CD pattern are very close in length so that through them the reversal points can be identified
📌 AB=CD Pattern Using Fibonacci Ratios:
🔹 This model requires the availability of the basic Fibonacci ratios, which are 61.8%, 78.6%, 127, 161.8%
🔹 Point C must be corrected by 61.8% on the Fibonacci scale of the AB leg, or by 78.6%.
🔹 Point D is achieved at the corrective level 127.2% or 161.8% of BC.
However, the following was noted:
🔹 When point C corrects by 61.8%, the extension of the CD leg reaches the 161.8% corrective level.
🔹 When point C corrects by 78.6%, the extension of the CD leg reaches the corrective level 127.2%.
⭕️ There are some cases in which the CD leg only corrects 100% of the Fibonacci scale, then the name of the pattern AB=CD is achieved and in this rare case it may be the classic “double top or double bottom” pattern.
The CD leg may equal the AB leg at the time.
The AB = CD pattern is one of the basic patterns and was first discovered by Gartley in a book he published in 1935 entitled Profits in the Stock Market (also described as the lightning fast pattern).
In this pattern, the line connecting A and B represents the first price movement, and after the price makes a short correction move from point B and C, the pattern completes the line between C and D, which is the same line connecting AB with equal length.
Although the price movement is not always completely equal, the length of the two lines in the AB=CD pattern are very close in length so that through them the reversal points can be identified
📌 AB=CD Pattern Using Fibonacci Ratios:
🔹 This model requires the availability of the basic Fibonacci ratios, which are 61.8%, 78.6%, 127, 161.8%
🔹 Point C must be corrected by 61.8% on the Fibonacci scale of the AB leg, or by 78.6%.
🔹 Point D is achieved at the corrective level 127.2% or 161.8% of BC.
However, the following was noted:
🔹 When point C corrects by 61.8%, the extension of the CD leg reaches the 161.8% corrective level.
🔹 When point C corrects by 78.6%, the extension of the CD leg reaches the corrective level 127.2%.
⭕️ There are some cases in which the CD leg only corrects 100% of the Fibonacci scale, then the name of the pattern AB=CD is achieved and in this rare case it may be the classic “double top or double bottom” pattern.
The CD leg may equal the AB leg at the time.