Welcome! Dear Traders,you are reading my forex trading experiences. Forex trading is a very profitable and very risky business opportunity. If you are a beginner, calm down,have a cup of coffee, and convince yourself that you need to study hard to win in forex trading. Obviously, the task is not easy as the statistics claim that only 5% traders win in forex trading. If you are determined, serious,and hard working, you can surely be included in the group of winners.

## Monday, July 13, 2015

### HOW TO TRADE WITH BULLISH AB=CD HARMONIC CHART PATTERN

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.

Dear Traders, join the discussion with other traders, dropping a comment below, and subscribe the yourFXguide to receive updates.

#### 3 comments:

1. sir when the pattern is invalid ..
if price moving from C to D if price cross above again C means pattern valid or not?

1. Dear Friend,

No the pattern is not invalid, the new high would be the C point, if the price does not make a new high then the C would not be changed.

Hope you got the answer.

2. This is going to the of of my favorite blog to read the marker related information. Thank you sharing the awesome information.

Drop a comment...

### HOW CAN WE INTERPRET BIG GREEN CANDLE & BIG RED CANDLE ON CANDLESTICKS CHART

your F X guide- Candlesticks chart patterns are very simple to identify and very effective to trade. Generally, we find two kinds of can...