Bullish AB=CD Pattern: A very profitable setup (Example)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.
