# The AB=CD Harmonic Pattern

## How to trade the AB=CD Harmonic Patterns

Harmonic Patterns – AB=CD Pattern

The AB=CD Pattern is a pattern that was discovered by Gartley back in 1935. This pattern is measured in two major moves with a retracement move in the middle. The first leg and second leg of the pattern will be equal to one another and that's where the name AB=CD comes into play. We start the pattern with the AB leg followed by a retracement which is a wide range from a 0.382 to an 0.886 (or almost a full retracement of the AB=CD leg). You will notice that the AB=CD pattern is built into the structures of other harmonic patterns we trade.

Gartley explains to us in his book that the AB=CD pattern is a channel play, however statistical analysis has shown us other places that the AB=CD is highly effective and that is made clear in our members' area. Gaps near the completion point or within the structure of the harmonic pattern should be looked at as being dangerous.

There is more on this pattern when we talk about the alternative AB=CD, where there are some variations of length of the CD leg.

You will want to be very careful where and how to use this pattern as it does call for specific situations and events to unfold. More on this inside of our members' area.

You will want to be very careful where and how to use this pattern as it does call for specific situations and events to unfold.  More on this inside of our members' area.