Happy Friday traders! Here on the hourly time frame the EURJPY is providing us with a goo example of what could end up being an AB=CD pattern. This was one of the first simple patterns that I learned to trade, and I also learned the hard way that trying to take every single one would land me in the poor house.
Although i don't trade it on it's own, I routinely use it as part of my analysis when looking for areas of potential reversal and/or projecting future extensions.
Your analysis gives me day after day a better understanding of the process going on in the market. Very helpful tip today specially to add it to my new repertory in order to keep building my new foundations for trading. Thank you Akil.
Akil_Stokes
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Thank you so much for the great comment!
Don_Jones1
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Akil, there is a stunningly apparent reversal pattern that you may have already noticed and it is mathematical. I can show you a chart. But I think that maybe you might not like it? From your replies here, you may not be into Measured Moves or simply do this: use this formula A-B/2 and then add that result to the B Price point, and the reversal is very close to the C price point. The D price point is the FIB over-shoot, around the 123.6 or 161.8 (I do not have a calculator with me). This is my first visit here. I use these reversal patterns and AB=CD in my setups, so I really like your chart here.
Akil_Stokes
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Thank you Don. I certainly use measured moves in my analysis however probably a little differently then what you're referring to seeing how math isn't my strong suit. I appreciate the comment and sharing a strategy here on tradingview that has found you success. Hopefully others read it as well.
taustin98
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Wouldn't this be a breakdown of elliot wave 5 also?
Akil_Stokes
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I'm sure it could be to some. That's the thing about wave counts, if you ask 10 people that same question you're very likely to get 10 different answers. So i would trust what you see.
ShaharyarZafar
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What are the areas that you typically look for profits in an ABCD formation?
Akil_Stokes
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I like to use structure for my profit taking, a secondary option would be fibonacci
traderdose
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Awesome! I've been stalking this for a bit. Already in the GBP Bat. Good luck!
Akil_Stokes
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Nice! I'm in as well. Hopefully it works out for us
Your analysis gives me day after day a better understanding of the process going on in the market. Very helpful tip today specially to add it to my new repertory in order to keep building my new foundations for trading. Thank you Akil.