Price Patterns: "AB=CD"
The AB=CD pattern™, is a price structure where each price leg is equivalent.
The Fibonacci numbers in the pattern must occur at specific points. In an ideal AB=CD pattern™, the C point must retrace to either a 0.618 or 0.786. This retracement sets up the BC projection that should converge at the completion of the AB=CD and be either a 1.27 or 1.618. It is important to note that a .618 retracement at the C point will result in a 1.618 BC projection. A .786 retracement at the C point will result in a 1.27 projection.
The most important consideration to remember is that the BC projection should converge closely with the completion of the AB=CD.