AB=CD pattern - hsi, 1928

it's quite common to find a AB=CD pattern within a shorter timeframe. when it appears, it is rather a good trade with high gain:loss ratio.

AB=CD patterns sometimes could be a counter-trend movement, which is similar to a wave 2/4 of an impulsive wave; wave B of a correction wave. Market followers can easily recognize them and can even prepare to make use of them in order to trade with trend.

Book name: Trade what you see - How to profit from pattern recognition

Author: Larry Lesavento, Leslie Jouflas