Chapter 4. The AB=CD Pattern

The AB=CD pattern is a 4-point price structure where the initial price segment is partially retraced and followed by an equidistant move from the completion of the pullback. This structure has been previously discussed in many technical works, and it represents the basic foundation for ALL harmonic patterns. The Fibonacci aspects in the pattern should occur at specific points. In the AB=CD, the C point will be a defining level for the completion of the pattern. Although the BC projection is critical in this structure, the most significant harmonic number is the exact completion point of the AB=CD.