COINBASE:ETHUSD Ethereum / U.S. Dollar
The is a 5-point retracement structure that was discovered by Scott Carney in 2001. It has specific Fibonacci measurements for each point within its structure and it is important to note that D is not a point, but rather a zone in which price is likely to reverse, called the Potential Reversal Zone (PRZ). The B point retracement of the primary XA leg must be less than a 0.618, preferably a 0.50 or 0.382 and the PRZ consists of 3 converging levels: 1) of the primary XA leg, 2) extended pattern, usually 1.27 and 3) minimum BC projection is 1.618.
The first target would be the of AD and the second target the of AD. A common stop level would be behind the X-point. Conservative traders may look for additional confirmation. Bat Patterns can be and . TradingView has a smart XABCD Pattern drawing tool that allows users to visually identify 5-point reversal structures on a chart.