AB=CD Pattern Strategy

Posts: 257 · #1 - February 16, 2020, 07:11:54 PM

Trading strategies use the AB=CD pattern In the world of trading,

especially those using technical analysis, there are many traders who use chart patterns as a reference, not least with the AB=CD pattern. Why did I choose this pattern, because this pattern is among the easiest to remember and easy to recognize, and of course has a fairly high win ratio. This pattern connects legs A=B, B=C, C=D with the same distance using the Fibonacci retracement and Fibonacci expansion, or it could be just one of them. To find this pattern quite easily we must first measure the correction of point C using points A and B length, and point C should not exceed point A. After finding point C, after that point D can be placed in the area of 161.8% of the length of point A to B earlier. For more details, can see the picture.

And as an example I will analyze the EUR/USD pair :
In the EUR/USD pair it looks like it has touched the 161.8% area, we are just waiting for the bullish engulfing signal as confirmation of an open buy.

Linkback: https://www.forex.zone/trading-systems/10/abcd-pattern-strategy/3010/

Posts: 257 · #2 - February 24, 2020, 01:20:35 PM

I see a good momentum in the EURCHF pair, the EURCHF Daily timeframe has formed the AB = CD pattern perfectly.
after I measure the Fibonacci expansion, the price is in the area of 61.8% - 76.4% Fibonacci expansion which means that in that area we can open long positions. For the target we can place it at 1.14140 for the long term. I think this pair is quite promising, and if it ends perfectly in the target area it will form a Harmonic pattern.

Signal Recommendations:
Buy at the price of 1.05980
Stop loss at the price of 1.05383
The target is the price of 1.14140

Posts: 339 · #3 - February 25, 2020, 03:52:56 PM

The strategy is quite good and easy to recognize, so first we have to look for patterns that are shaped like that first, sir? Then we measure the Fibonacci retracement?

Posts: 527 · #4 - April 24, 2020, 08:58:37 AM

this pattern is quite simple, just enter Fibonacci and the leg length must be the same, but don't open the position immediately, see first with other assistance

Posts: 454 · #5 - April 25, 2020, 05:24:37 AM

this is an example of the AB = CD pattern but it is easily visible but it needs careful observation using other supporting indicators such as oscillator or zigzag