The bullish AB=CD is a measured move down chart pattern except that the turns are located using Fibonacci ratios.The pattern correctly predicts point D 57% of the time. By using the next higher Fibonacci ratio in the measure rule, you can boost the accuracy somewhat, to 65%. What Is an ABCD Pattern? Reflects the common, rhythmic style in which the market moves. A visual, geometric price/time pattern comprised of 3 consecutive price swings, or trends—it looks like a lightning bolt on price chart. A leading indicator that helps determine where & when to enter and exit a trade.Why is the ABCD Pattern important? include the U.S. Dollar (USD). Helps identify trading opportunities in any market (forex, stocks, futures, etc.), on any timeframe (intraday, swing, position), and in any market condition (bullish, bearish, or range-bound markets) All other patterns are based on (include) the ABCD pattern. Highest probability trade entry is at completion of the pattern (point D). Helps to determine the risk vs. reward prior to placing a trade. Convergence of several patterns—within the same timeframe, or across multiple timeframes--provide a stronger trade signal.
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Step 1: Find AB Point A is a significant high Point B is a significant low In the move from A to B there can be no highs above point A, and no lows below B
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Step 2: AB, then find BC Point C must be lower than point A In the move from B up to C there can be no lows below point B, and no highs above point C Point C will ideally be 61.8% or 78.6% of AB In strongly trending markets, BC may only be 38.2% or 50% of AB
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Setp 3: BC, then draw CD Point D must be lower than point B (market successfully achieves a new low) In the move from C down to D there can be no highs above point C, and no lows below point D Determine where D may complete (price) ---insert fib & abcd tool tutorial link CD may equal AB in price CD may be 127.2% or 161.8% of AB in price CD may be 127.2% or 161.8% of BC in price
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Step 4: Determine when point D may complete (time) for additional confirmation –insert fib time tool link CD may equal AB in time CD may be 61.8% or 78.6% time of AB CD may be 127.2% or 161.8% time of AB
plz post chart of your short idea on the TA published for gold this week (well post our bias later) @alabd,
RedRum3X
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These seem to be lower highs. When does this pattern break or does it continue?
UnknownUnicorn3442968
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@arizvi829, This is just for education my friend
UnknownUnicorn3442968
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yes it is lower highs. AB=CD is shown above, you can click play and see price action made a new lower high, then continued it's downtrend like you're saying =) @arizvi829,
ultimate d1 trade plan for xauusd and outlook for dec2019.