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  • 118complete Guide To Forex Trading by PriceAction

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    The document discusses the ABCD harmonic pattern, where after an initial rise (A to B), prices retrace (B to C), finding support from new buyers. As buying subsides, prices then resume rising (C to D), with some investors who bought during the initial rise now selling to break even. Once prices approach the top of the initial rise again, others will take profits, beginning the cycle to repeat.

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    118Complete-Guide-to-Forex-Trading-by-PriceAction

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    The document discusses the ABCD harmonic pattern, where after an initial rise (A to B), prices retrace (B to C), finding support from new buyers. As buying subsides, prices then resume rising (C to D), with some investors who bought during the initial rise now selling to break even. Once prices approach the top of the initial rise again, others will take profits, beginning the cycle to repeat.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views1 page

    118complete Guide To Forex Trading by PriceAction

    Uploaded by

    john
    The document discusses the ABCD harmonic pattern, where after an initial rise (A to B), prices retrace (B to C), finding support from new buyers. As buying subsides, prices then resume rising (C to D), with some investors who bought during the initial rise now selling to break even. Once prices approach the top of the initial rise again, others will take profits, beginning the cycle to repeat.

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    © All Rights Reserved
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    of 1

    MODULE 2 - CHAPTER 1

    HARMONIC PATTERNS

    1. ABCD PATTERN

    As the price declines toward the Fibonacci retracement


    levels.  those who may have missed the first move up
    begin to step in to buy the dip. Institutional investors
    may add to their positions. and speculators also may
    step in to buy a higher low, providing price support.

    The selling ubsides and the price finds support as more


    new buyers come into the stock or market and the
    price begins to resume its rise (CD leg). At this point,
    some investors who rode out the loss from buying near
    the top of the AB leg may sell as the price approaches
    their breakeven point on the retracements back up
    from the BC leg.

    Some who missed getting out at a profit near the top


    of the AB leg now take profits as the price is close to
    those levels again. The CD leg now begins to repeat the
    cycle of buyers, and as the price rises further those

    Free Forex Signal www.priceactionltd.com Page 131

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