back start next[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [ 37 ] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] 37 The bullish AB=CD possessed two numbers that were within 1 1/2 points. The pattem was calculated to complete at 65 11/16 and the 1.618 projection was calculated at 64 3/8. These two numbers suggested an excellent buying opportunity right around 65. The symmetry of the pattem was almost exact, as the AB leg was 16 days and the CD leg was 15 days. The stock reversed just past the completion of the AB=CD pattem at 65 1/2.The next example of Compaq sold off and reversed after almost completing an exact AB=CD. This AB=CD pattem yielded quite a reversal, as Compaq more than doubled in the following six months. In addition, Compaq completed an almost exact AB=CD.COMPAQ(CPQ): DAILY BULUSH AB=CD©BigCharts.comThis set-up was quite harmonic because the two calculations converged at almost exactly the same point. The AB=CD completion point was projected at 22 7/16 and the 1.618 of the leg was calculated at 22 1/2. When two projections converge in an area this close together, there is ahigh probability for a reversal. Another very harmonic aspect ofthis set-up is that the leg reversed exactly off the .618 retracement of the AB leg, which was at 34 3/16 (pt. C). When the leg reverses exactly off a Fibonacci retracement, this should signal a highly probable reversal at the following potential reversal zone.The time symmetry of the price legs was veiy close. The AB leg required 11 days to complete, while the CD leg was 9 days in duration. Although I would have preferred the time length be exact, the symmetiy was quite nice. Also, the slope of each leg was similar and each price leg was very distinct. The AB=CD and the 1.618 of were indicating that a potential set-up at 22 1/2I have included this enlarged candlestick chart of the potential reversal zone. If you were looking to go long Compaq, when the stock sold off below 25, you should have been paying close attention to the price action.COMPAQ (CPQ): DAILYBULLISH AB=CD PRICE ACTION IN THE POTENTIAL REVERSAL ZONE±AB=CD@221/2:L618BC@22 7/16SBisCharts.coinllllllllliilllll34 33 32 31 30 29 28 27 26 25 24 23 2230 20 1 24 25 28 29 30 Oct 2 5 6 7 8 9 12 13 15 16 19 20 21 22 23 26 27 28 29 30Although the stock did not complete an exact AB=CD pattem, it did reverse within a point ofthe potential reversal zone. The distance of the CD leg was 11 1/4 points, and it reversed at 22 15/16. This execution might have been tricky, since the stock did not complete the exact AB=CD. In situations like these, it is prudent to wait for some clear confirmation of a reversal before entering the trade.Despite the fact that Compaq did not complete the exact AB=CD pattem, reversing only 1/2 of a point shy of the projection, the stock provided significant bullish signs. The best indicator of the reversal was the doji that formed just above the potential reversal zone. The reversal was definitely confirmed the following day after hitting the low at 22 15/16, as the stock gapped up and closed well above the previous days price action.Within a week, the stock was clearly breaking out to the upside. The convincing bullish price action of higher highs and higher lows was very substantial. So, even if you missed the reversal day, the gap up on the open of trading the next day should have indicated that the bullish trend was underway.The next example of Oxford Health Plans completed a near perfect bullish AB=CD pattem. This was a very harmonic set-up because the 1.27 projection of the leg converged at the same point as the completion of the exact AB=CD. The stock reversed after exceeding the exact projection by a 1/4 of a point.The AB leg was 5 3/4 points. The stock retraced this move and reversed exactly at .786 of the AB leg, which was at 19 1/4 (pt. C). Such an exact reversal off a Fibonacci number indicates that this pattern is potentially very harmonic. The stock sold off and reversed just after hitting a low of 13 1/4. Thus, the CD leg was 6 points, which was only an 1/8 point longer than the AB leg.The pattem was closely symmetrical in time as well. The AB leg required 11 days to complete, while the CD leg needed 14 days to complete. Although the time was not exact, the harmonic projections clearly indicated an opportunity to buy the stock around 13 1/2.Oxford Health Plans was down sharply the day that it hit this area, as evidenced by the large bearish candlestick. In fact, it gapped down on the open. So, you might have waited a day for the price action to confirm the reversal. The next day clearly indicated a reversal at hand, as the stock did not continue to decline. Within a few days, the stock rallied sharply. The reversal yielded an excellent profit, as the stock rallied almost 40% within the next two weeks.[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [ 37 ] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95]