The AB=CD pattern is easy to identify on charts and consists of 2 equivalent price legs. It has specific Fibonacci measurements of each point within its structure, eliminating room for flexible interpretation. The C point must retrace to either a 0.618 or 0.786 and the BC projection is either 1.27 or 1.618. When the BC projection and the AB=CD completion converge closely and define a small area, the chance of a reversal increases.
The first target would be the 382 retracement of AD and the second target the 618 retracement of AD. A common stop level is behind a structure level beyond the D point. Conservative traders may look for additional confirmation before entering a trade, for instance an aligning RSI value or a specific candlestick pointing at a reversal. TradingView has a smart ABCD Pattern drawing tool that allows users to visually identify this pattern on a chart. There are several variations, based on CD being an extension of AB such as the 1.27 AB=CD or the 1.618 AB=CD pattern.
NSE:BATAINDIA is good to short below 1270 with 1330 as SL. Target 1143-1026. It is exhibiting Bearish AB=CD, Yearly Pivot R1, RSI Bearish Divergence, Highest Call OI at 1300 and Dark Cloud Cover Candlestick Pattern.
NSE:TATACOMM is exhibiting Bearish AB=CD pattern with 600 CE having the highest OI. A bearish Candlestick pattern with its high touching 610.5 will confirm the pattern. Join our telegram channel t.me
Moving In Upward Channel.
At Support of Channel.
At Support Zone.
Fibonacci Support.
Above 235, Harmonic Pattern AB=CD Will Be In Action.
Risk Reward Looks Favourable.
Will Review TSL Near Targets.
Other Details Mentioned In Chart.
Positional View For Educational Purpose Only.
Please Consult Your Financial Advisor Before Taking Any Decision.
I am not SEBI...
Bata India Looks weak on weekly time frame with Bearish ABCD pattern and RSI Bearish Divergence. A Bearish candlestick pattern on weekly time frame will confirm bearishness. t.me
THE 15 MIN TF HAS WITNESSED A STRUCTURE BREAK.LONG TERM TREND IS BEARISH.TRENDLINE HAS BEEN BROKEN TO THE DOWNSIDE FOLLOWED BY A BEARISH CROWN IN THE MAKING.A SHORT TRADE CAN BE LOOKED FOR ON THE .618% RETRACEMENT TOWARDS THE 954 LEVELS,STOP LOSS-966,TARGET-930
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