The AB leg is Down in a bullish AB-CD pattern and in the bearish version the AB leg is upward. This pattern is not always equal and the CD leg can be shorter or an extension of the AB leg. In this case it is very close to Equal.
It is good to wait for confirmation when price hits D in this pattern. Possible stop under D.
The retracement of AB (from B to C) can be between 38.2% to 78.6% of the A-B leg, however, an ideal pattern has a retracement of 61.8% to 78.6%. This one is .786.
This differs from the pattern I call ABC bullish (which is an ABCD pattern, but the target is D) as the second valley is lower than the first one. In an ABC bullish pattern, C has to be higher than A.
Any pattern can fail. No recommendation.
I see re-opening as the trade right now so am watching this one. I was just curious as to why this one popped a bit today.
I have found it is easier to watch a few than a bunch (o:
It is good to wait for confirmation when price hits D in this pattern. Possible stop under D.
The retracement of AB (from B to C) can be between 38.2% to 78.6% of the A-B leg, however, an ideal pattern has a retracement of 61.8% to 78.6%. This one is .786.
This differs from the pattern I call ABC bullish (which is an ABCD pattern, but the target is D) as the second valley is lower than the first one. In an ABC bullish pattern, C has to be higher than A.
Any pattern can fail. No recommendation.
I see re-opening as the trade right now so am watching this one. I was just curious as to why this one popped a bit today.
I have found it is easier to watch a few than a bunch (o:
Comment:
Best thing to do sometimes when you have no clue what to do, is nothing.