Looking good, further to the AB=CD to determine where we might have a possible reversal, you can also use Fibonacci extensions of AB and inverted BC ...
Try it and you'll see that often you get like a Fibonacci cluster giving you a good indication of where the trend might reverse. :)
IvanLabrie
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Can you post an example? Interesting concept Nico.
Nico.Muselle
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Here is an example where I drew in the AB 1.272 Fibonacci extension and the BC 1.414 inverted extension. You see that they pretty much align, which, if this pattern would have completed would be a good indication on where price action might reverse.
Inverted BC means that your starting point to draw in the extension is C, then go to B and back down to C. Let me know if you have any questions about it.
IvanLabrie
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These clusters are interesting, since so many traders are looking at fibonacci lends well to them working as s/r zones.
Good one Nico ;)
Nico.Muselle
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Thanks, in this case the pattern never completed, there was a potential Gartley pattern in there ... But in general, if you are looking for a move beyond a previous price, the 1.272 and 1.618 fibonacci extensions are your friend to give you an indication.
Try it and you'll see that often you get like a Fibonacci cluster giving you a good indication of where the trend might reverse. :)