The pattern has **four points**: A, B, C, and D, forming two legs: **AB and CD**, which are equal in length and time.
There are two types:
* **Bullish AB=CD**: Signals a potential reversal to the upside.
* **Bearish AB=CD**: Signals a potential reversal to the downside.
Fibonacci Guidelines:
* The length of AB should be approximately equal to CD.
* The time it takes for price to move from A to B should be similar to C to D.
* The retracement BC is often:
* 61.8% or 78.6% of AB
* The projection CD is:
* 127.2% or 161.8% of BC
There are two types:
* **Bullish AB=CD**: Signals a potential reversal to the upside.
* **Bearish AB=CD**: Signals a potential reversal to the downside.
Fibonacci Guidelines:
* The length of AB should be approximately equal to CD.
* The time it takes for price to move from A to B should be similar to C to D.
* The retracement BC is often:
* 61.8% or 78.6% of AB
* The projection CD is:
* 127.2% or 161.8% of BC
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.
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.