A Quick Guide About Theory the AB=CD Pattern.

The AB=CD pattern is a foundational harmonic structure in technical analysis, marked by three consecutive price swings. Here, the AB and CD legs are equal in length and slope, creating symmetry that signals potential reversal zones.

>How to Trade It

1. Identify Swings.

You can Use a ZigZag indicator (Custom > ZigZag) to highlight price peaks and troughs. Focus on spotting the AB (initial impulse) and BC (corrective pullback).

2. Confirm Retracement and Projection.

You can Use fibonacci retracement for this.

3. Execute and Take Profit.

Where is the TP placement? You can also use Fibonacci or place it on the nearest SNR. Actually, this is up to you, the important thing is that you have to consider the risk and remember! Don't be greedy!

>Pro Tip

Combine with other indicators (e.g., RSI, MACD) to improve accuracy.

>Regarding Fibonacci, there are important value lines in Fibonacci so you should learn that too But remember that these values are not absolute. The market does not always move according to what the theory says 😂

Use this pattern?

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