ABCD PATTERN

THE ABCD PATTERN IS THE MOST IMPORTANT PART OF ANY PATTERN. THIS IS DRILLED IN SCOTT CARNEYS BOOKS. WHAT YOU SEE THE BC PROJECTION IS A 1.618. NOW IN THE BOOKS IT GIVES THE RECIPICOL NUMBERS OF ALL THE NUMBERS USED IN THE ABCD PATTERN.

THIS IS A .618 AB RETRACEMENT FOR THE C POINT.

THIS IS ANOTHER PIECE OF THE PRZ.

NOW THIS IS A BIT CONFUSING BUT THIS MIGHT NOT BE THE COMPLETION POINT.

THE COMPLETION POINT IS FOUND BY USING THE FIBO EXTENSION TOOL.

THE INTERSTING THING ABOUT THE FIBO EXTENSION COMPLETION IS THAT ITS INDICTIVE OF A IMPERFECT AB RETRACEMENT. THE FURTHER AWAY THE B POINT IS FROM THE TRUE FIB RETRACEMENT WILL SHOW IN THE EXTENSION.

AS ONE SEES THE YELLOW LINE IS THE EXTESION COMPLETION POINT.

THE EXTENSION IS A CONTROVSIAL TOOL BECASUE TRADERS USE IT ONE OF TWO WAYS.

1. THEY WILL PLOT IT FROM POINT A -> B-> C (WHICH IS THE WAY I USE IT AND MY NUMBERS ALWAYS LINE UP CORRECTLY.

2. OR THEY WILL GO FROM POINT A-> B-> A. NOW DOING THIS USUALLY EXPANDS THE PRZ CONSIDERABLY AND MIGHT BE BENEFICIAL FOR VOLITLE PRICE ACTION BUT IT MAKES THE PATTERN FLAWED AND UNTRUE, IN MY OPINION.

THIS IS ANOTHER PIECE OF THE PRZ AND THE FINAL PIECE.