{LONGTERMINVESTORS} How to trade ABCD Harmonic Pattern

The AB=CD or 'lightning bolt pattern' Harmonic Pattern

• AB=CD is a reversal pattern that helps you identify when the price is about to change direction
• AB=CD pattern is a four point harmonic pattern which may be considered the developmental basis for other harmonic patterns.
• A-B leg when a market is trending upwards, the first leg (A-B) is formed as the price rises/fall  from A to B.
• B-C leg price switches direction and retraces  up/down between 38.2%-78.6% to form the B-C leg.
• C-D leg At point C, the price switches direction again and continues its original uptrend. This leg (C-D) slopes upwards, parallel with the A-B leg and should ideally be the same length as the A-B leg when it completes.

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.

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Rgds,

Bramesh

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