HOW TO TRADE WITH BULLISH AB CD HARMONIC CHART PATTERN ~ forex trading for beginners in nigeria
Bullish AB=CD harmonic chart pattern is a very sweet, and very often found chart pattern. It suggests a long position upon completion of the pattern. This post is to explain the way to find a bullish AB=CD harmonic chart pattern on price chart, and the way to trade the pattern .
How to find a bullish AB=CD harmonic chart pattern on price chart ?
The fist step to find the bullish AB=CD harmonic chart pattern is to find the A and B points of the pattern. A point is found at the top of a bearish trend, and B point is found at the bottom of a bearish trend. In the second step, we are to find the C point of the pattern. To find the C point, draw a fibonacci retracement tool from A to B. The C point will be found between the 38.2% and 88.6% fibonacci retracement of AB.
In the previous step we confirmed the C point of the pattern, and now we are going to confirm the D point of the pattern. To confirm the D point, draw a fibonacci retracement tool from B point to C point. D point will be confirmed by the 2.618% fibonacci retracement level of BC.
In the final step we just drawn the AB, AC, BD, and CD straight lines to find the complete bullish AB=CD harmonic chart pattern. This step is not necessary to be drawn on price chart .
How to trade the bullish AB=CD harmonic chart pattern?
Trading with bullish AB=CD harmonic chart pattern is simple. Just place a buy order when the D point is confirmed.
The profit target for the order is to be placed on the horizontal line going through the C point, and the stop loss should be placed at the support level lower the D point. The profit target can also be placed at the 50% fibonacci retracement level of CD.
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How to trade the bullish AB=CD harmonic chart pattern?
Trading with bullish AB=CD harmonic chart pattern is simple. Just place a buy order when the D point is confirmed.
The profit target for the order is to be placed on the horizontal line going through the C point, and the stop loss should be placed at the support level lower the D point. The profit target can also be placed at the 50% fibonacci retracement level of CD.
Dear Traders, join the discussion with other traders, dropping a comment below, and subscribe the yourFXguide to receive updates.
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