61.8% can not touch 78.6% XA
38.2% to 88.6% AB
127% ext AB
TP1 38.2% AD
TP2 61.8% AD
There are 2 basic shapes, both with converging highs and lows:
A forms with lower highs and lower lows. A signal, a is a continuation signal in an up-trend and a reversal signal when observed in a down-trend.
A is formed by higher highs and higher lows. A signal, the pattern is normally a continuation signal in a down-trend but acts as a reversal signal when encountered in an up-trend.
The target for a continuation pattern is measured in a similar fashion to a flag or .
The target for a reversal pattern is calculated from the highest peak to the lowest trough in the pattern. The objective is calculated by projecting the target up/down from the breakout point."