The elements of trading the pattern
The pattern starts (with 0) at the beginning of a long price move
After 0 has formed, an impulse reversal at X, A, and B should have a 113 to 161.8 percent extension
The projection off of AB has a 161.8 percent extension requirement to C. C can extend beyond the 161.8 percent extension but not beyond 224 percent.
D is the 50 percent retracement of BC and is same as AB
The reciprocal AB=CD is needed
The pattern starts (with 0) at the beginning of a long price move
After 0 has formed, an impulse reversal at X, A, and B should have a 113 to 161.8 percent extension
The projection off of AB has a 161.8 percent extension requirement to C. C can extend beyond the 161.8 percent extension but not beyond 224 percent.
D is the 50 percent retracement of BC and is same as AB
The reciprocal AB=CD is needed
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.