Bearish AB = CD Pattern on GBP/JPY 4-HR. Chart [Click on chart to view in a Larger format]
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| GBP/JPY 4-hr. Chart with AB=CD Pattern |
This Bearish ABCD pattern here is almost exactly an AB=CD pattern. The AB Leg is 303 pips and the CD Leg is 301 pips. The other very interesting thing about this pattern is that the length of time for each section to form is the same. 11 bars for the ABC section and 11 bars for the CD section. The candlestick at point D is a Spinning Top. This was an indication of a potential Reversal also.
Price went down and hit the 38.2% Fibonacci Retracement Level and then traded back up briefly. It hit resistance around previous high and tested the 38.2% Level again.
Very Symmetrical : I've found that the patterns that show the best symmetry tend to be the most useful patterns. (See Chart)
Manage your Risk. Happy Trading!
