Hi All ,
I'm just sharing info on pattern : ABCD pattern where price moves down from A to point B than rises to point C and again falls to point D , AT point D we can look out for potential reversal .
1)Lets say AB is down leg , And BC is retracement which is 0.618 or 0.786 of AB
i.e Length or height of BC = ( 0.618 or 0.786 ) x length of AB
2) After BC leg there is another leg down CD which is 1.27 or 1.618 of BC
i.e Length or height of CD = (1.27 or 1.618 ) x length of BC
Than after all these mathematics we can lookout for Point D as potential reversal zone (short form PRZ) i.e since in the above we consider AB and CD as down move , than at point D we should be looking for buying opportunity .
RULES :
1)Wait for buying signal , Just that 1.27 extension is complete doesn't mean its a buy it can extend to 1.618 also.
2) Approximate values may work i.e instead of 0.61 , it can be 0.59 or 0.63 but it should be any thing like 0.41
Finally Remember the ratios :
BC= 0.61 or 0.786 (AB)
CD = 1.27 or 1.618 (BC)
Point D is potential reversal zone
I'm just sharing info on pattern : ABCD pattern where price moves down from A to point B than rises to point C and again falls to point D , AT point D we can look out for potential reversal .
1)Lets say AB is down leg , And BC is retracement which is 0.618 or 0.786 of AB
i.e Length or height of BC = ( 0.618 or 0.786 ) x length of AB
2) After BC leg there is another leg down CD which is 1.27 or 1.618 of BC
i.e Length or height of CD = (1.27 or 1.618 ) x length of BC
Than after all these mathematics we can lookout for Point D as potential reversal zone (short form PRZ) i.e since in the above we consider AB and CD as down move , than at point D we should be looking for buying opportunity .
RULES :
1)Wait for buying signal , Just that 1.27 extension is complete doesn't mean its a buy it can extend to 1.618 also.
2) Approximate values may work i.e instead of 0.61 , it can be 0.59 or 0.63 but it should be any thing like 0.41
Finally Remember the ratios :
BC= 0.61 or 0.786 (AB)
CD = 1.27 or 1.618 (BC)
Point D is potential reversal zone
Ghi chú
Small correction in Rule number 2 :Please read "it should not be" instead of "should be"
2) Approximate values may work i.e instead of 0.61 , it can be 0.59 or 0.63 but it should NOT be any thing like 0.41
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Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.