Mr Pip
Let me try if I understand difference of XABCD VS AB=CD
X major swing AB C retrace ideally .618 but invalid if closes above .786 if this happens we might be looking double top or double down.D is ideally at 127.2 (measured from BC)but can extend longer even 1.618 at which point becomes PRZ
CD should be at least 127.2 shorter then this invalidates the pattern.
AB=CD
AS the formula suggest AB should be equal to CD and if CD is longer then AB then invalidates the pattern could become XABCD
B to C ideally should be .618 but no more then .786 but can be short 38.2 as well.
What I have been reading by Larry Pesavento if BC is shorter then .618 say 38.2 then most often CD leg is longer.Stronger the move less the retrace.
Did I miss anything?Thanks Mr Pip
Let me try if I understand difference of XABCD VS AB=CD
X major swing AB C retrace ideally .618 but invalid if closes above .786 if this happens we might be looking double top or double down.D is ideally at 127.2 (measured from BC)but can extend longer even 1.618 at which point becomes PRZ
CD should be at least 127.2 shorter then this invalidates the pattern.
AB=CD
AS the formula suggest AB should be equal to CD and if CD is longer then AB then invalidates the pattern could become XABCD
B to C ideally should be .618 but no more then .786 but can be short 38.2 as well.
What I have been reading by Larry Pesavento if BC is shorter then .618 say 38.2 then most often CD leg is longer.Stronger the move less the retrace.
Did I miss anything?Thanks Mr Pip
In trading, you have to be defensive and aggressive at the same time