ABCD Pattern
The simplest harmonic structure — a four-point zigzag where BC is a Fibonacci retracement of AB and CD equals AB in length and time.
Formula
CD = AB (equal legs); BC = 61.8%–78.6% retracement of AB
The ABCD Pattern is the foundation of all harmonic patterns. Price moves from A to B (the initial leg), retraces to C (BC = 61.8%–78.6% of AB), then drives to D (CD equals AB in length or time).
The D point represents the trade entry — long at a bullish D, short at a bearish D. Because it is symmetric, it is also called an "AB=CD" pattern. The measured D target can also be defined by a 127.2% or 161.8% BC extension.
Related Terms
Butterfly Pattern
A harmonic XABCD pattern where D extends beyond X — identifying extreme reversals at the end of large moves.
AdvancedGartley Pattern
A five-point harmonic pattern (XABCD) using specific Fibonacci retracements that marks high-probability reversal zones.
AdvancedHarmonic Pattern
Any of the XABCD patterns (Gartley, Bat, Butterfly, Crab) that use precise Fibonacci ratios to identify Potential Reversal Zones.
AdvancedMeasured Move
A technique projecting a price target by duplicating a prior swing move from a breakout or consolidation point.
BeginnerThree Drives Pattern
Three symmetrical price drives toward a reversal point, each drive an equal Fibonacci extension — signals exhaustion of the dominant trend.
Advanced