# Backward Market Geometry | #technicalanalysis #forex #fibonacci

FX:GBPAUD   British Pound / Australian Dollar
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Friends,

As I come across comments on the charts in which traders overlay simple geometries, I thought I should point out to the ones that have been most important in my experience, in terms of how reliable they have been.

THE STANDARD AB=CD PATTERN:

To start the enumeration of the most common ones, let's name the most obvious ones, the a-b = c-d symmetrical pattern.

In its most mundane form, the a-b = c-d represents a balancing of a geometric form in which the ab segment is reproduced following a shallower retracement in the order of 0.382 to 0.786 Fibonacci range. What ensues is simply a cut-and-paste version of the a-b segment into a c-d segment.

In the chart, you will see this in the large RED dashed figure.

REITERATION OF THE STANDARD AB=CD PATTERN:

While there is a possibility of reiteration of the ab segment into a c-d, then a e-f segment (see YELLOW pattern in the price field), this represents a lesser occurrence.

FIBONACCI CAN HELP MEASURE THE EXTENT OF THE PATTERN:

The type-A trader might be tempted to look for a perfect replication of a-b into c-d, but this is rarely the case, as the market will expand at its own whim. Be flexible and let the market breathe a little.

Still, the trader interested to keep a pulse on these development should remain on guard with such Fibonacci-paced extensions as 1.272, 1.414 and 1.618 x the b-c segment, or in the case of a reiteration, 1.272, 1.414 or 1.618 x d-e segment.

MOST RELIABLE SIMPLE GEOMETRY:

In my experience, most novice pattern traders have calibrated their visual cortices to scan for forward-moving price action, over which they draw a line and look for a symmetrical repetition, so as to decipher the all-too familiar a-b = c-d symmetrical pattern.

Instead, I recommend that you seek out not the FORE-ward, but instead the BACK-ward leaning price action. In this geometry, you will have to reverse your mind's eyes, looking for a symmetrical repetition in which the a-b = c-b segment is drawn lines leaning in reverse of the standard symmetrical a-b = c-d pattern.

This pattern has a name: The One2One (purple in the chat)

OVERALL:

In my experience, the completion of these symmetrical patterns are rarer, but accompanied by a most forceful price reaction upon completion of the reversed a-b = c-d geometry.

David Alcindor
Predictive Analysis & Forecasting

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@4xForecaster

David Alcindor
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02 APR 2015 - Update:

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$GBPAUD hit target at 1.94589; Rallied further to complete background geo. along 1-4 Line: @tradingview$GBP $AUD ---------- David Alcindor Reply 23 MAR 2015 - Update: From Twitter/LinkedIn: ----------$GBPAUD hit its second target at 1.90587; Remains bearish; Eyes 1.87458:

@tradingview $GBP$AUD #BOE #RBA #forex
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David Alcindor
23 MAR 2015 - Update:

$GBPAUD coming down nicely as forecast. David Reply 13 MAR 2015 - Update: From Twitter/Linked-In: ----------$GBPAUD rolled from geo.; mulls around prior target; Break < 1.92687 opens floor:

@tradingview $GBP$AUD #BOE #RBA
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David Alcindor
4xForecaster
looks like we might continue going down
HiTech
Yes, bears are still in control in this one per model - David
hello david thanks
06 MAR 2015 - Update:

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$GBPAUD hit TG-1 as forecast; Recoiled to prior R/S; Remains Bearish: @tradingview$GBP $AUD$USD #BOE #RBA #forex
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David Alcindor
05 MAR 2015 - Update:

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$GBPAUD stumbles across forecast levels; Remains on tack towards targets: @tradingview$GBP $AUD #BOE #RBA #forex ---------- David Alcindor Reply 04 MAR 2015 - Update: From Twitter/LinkedIn: ----------$GBPAUD steps across 1.95683 structure once again; Floor may cede to TG-1:

@tradingview $GBP$AUD #BOE #RBA #forex
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David Alcindor
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