The AB=CD pattern is a simple geometric pattern commonly used in technical analysis to identify

potential price reversals or continuation patterns. It is based on the concept that price tends to move
in repetitive and predictable patterns.

The AB=CD pattern consists of four price swings and is named after the equality between the AB and
CD legs. Here are the main characteristics of the AB=CD pattern:

1. AB Leg: The AB leg is the initial price swing and can be in any direction, either up or down. It
represents the first major move in price.

2. BC Leg: The BC leg is a retracement of the AB leg. It retraces a portion of the AB leg and is typically
a Fibonacci retracement level such as 0.382, 0.50, or 0.618. The BC leg helps determine the potential
completion area of the pattern.

3. CD Leg: The CD leg is the final leg of the pattern and completes the symmetry. It is a price swing
that is equal in length to the AB leg. The CD leg can be an extension or retracement of the BC leg,
and it often terminates at a Fibonacci extension level such as 1.27, 1.414, or 1.618.

The completion of the AB=CD pattern suggests a potential reversal or continuation zone, where
traders may consider entering trades. When the CD leg completes at the projected level, it indicates
that the pattern has fulfilled its symmetry, and price may reverse or continue in a similar direction as
the AB leg.

Traders often use additional technical analysis tools such as support and resistance levels, trendlines,
and indicators to validate the AB=CD pattern and make informed trading decisions. It's important to
note that not all AB=CD patterns will result in successful trades, and risk management techniques
should be employed to protect capital and optimize trade outcomes.

The AB=CD pattern can be found in various timeframes and can be used in conjunction with other
trading strategies to enhance trading decisions.