The AB=CD pattern is a common harmonic pattern used in technical analysis of financial markets. It is used to identify potential reversal points in the market by comparing the lengths of two price legs (AB and CD) and their corresponding Fibonacci retracements and extensions.

A bearish AB=CD pattern is used to predict a potential price decline. Here’s how you can identify and confirm a bearish AB=CD pattern:

Identify the Pattern Points:

Point A: This is the starting point of the price move.
Point B: The end of the initial move up from point A.
Point C: The retracement of the AB move, usually around 61.8% or 78.6% of the AB leg.
Point D: The projection of the BC move, often equal to the AB move (i.e., AB = CD).
Chart PatternsHarmonic PatternsTrend Analysis

Aviso legal