What is the ideal AB/CD pattern?

The ideal AB=CD pattern is equal in time and price, with point D being an Fibonacci extension between 127%-161.8% of the B-C leg. You can sell at point D (or just before) where the pattern ends, or, in a downtrending market, go long at point D. AB=CD patterns are not always perfect, however, they are common.

What is AB & CD pattern?

The AB=CD pattern helps you identify when the price is about to change direction so that you can buy when prices are low and sell when they are high. The pattern consists of three legs, with two equal legs labelled AB and CD, together they form a zig-zag shape. For this reason it is sometimes called the 'lightning bolt pattern'.

What is AB/CD harmonic pattern?

The AB=CD Harmonic Pattern is a popular chart formation in technical analysis, known for its simple and symmetrical structure, used to predict potential price reversals. This pattern comprises four key points (A, B, C, D) and is identified by equal price legs, offering clear signals for entry and exit points in trading.