ABCD Pattern:
To spot this chart pattern, all you need are ultra-sharp hawk eyes and the Fibonacci tool.
For both the bullish and bearish versions of the ABCD chart pattern, the lines AB and CD are known as the legs while BC is called the correction or retracement.
If you use the Fibonacci retracement tool on leg AB, the retracement BC should reach until the 0.618 level. Next, the line CD should be the 1.272 Fibonacci extension of BC.
Only 2 Rules for the ABCD Pattern:
•The length of line AB should be equal to the length of line CD.
•The time it takes for the price to go from A to B should be equal to the time it takes for the price to move from C to D.
Now lets look at the AudUsd 4 hourly chart, notice how this perfectly lines up.
And now the Bearish Gartley Setup
Sell AudUsd at 0.7550, stop loss 0.7605 and take profit 0.7385. Risk Reward ratio 1: 3.71, meaning risking 2 % on Capital this would be a 7.42% return
To spot this chart pattern, all you need are ultra-sharp hawk eyes and the Fibonacci tool.
For both the bullish and bearish versions of the ABCD chart pattern, the lines AB and CD are known as the legs while BC is called the correction or retracement.
If you use the Fibonacci retracement tool on leg AB, the retracement BC should reach until the 0.618 level. Next, the line CD should be the 1.272 Fibonacci extension of BC.
Only 2 Rules for the ABCD Pattern:
•The length of line AB should be equal to the length of line CD.
•The time it takes for the price to go from A to B should be equal to the time it takes for the price to move from C to D.
Now lets look at the AudUsd 4 hourly chart, notice how this perfectly lines up.
And now the Bearish Gartley Setup
Sell AudUsd at 0.7550, stop loss 0.7605 and take profit 0.7385. Risk Reward ratio 1: 3.71, meaning risking 2 % on Capital this would be a 7.42% return