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The AB=CD pattern is a price structure where each
price leg is equivalent. The Fibonacci numbers in
the pattern must occur at specific points. In an
ideal AB=CD, the C point must retrace to either a
0.618 or 0.786. This retracement sets up the BC
projection that should converge at the completion
of the AB=CD and be either a 1.27 or 1.618. It is
important to note that a .618 retracement at the C
point will result in a 1.618 BC projection. A .786
retracement at the C point will result in a 1.27
projection. The most important consideration to
remember is that the BC projection should converge
closely with the completion of the AB=CD.
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