ABCD Pattern

The ABCD pattern is the simplest harmonic pattern: an AB move, a BC retracement, and a final CD move, with the legs tied together by Fibonacci ratios (typically BC is 61.8% of AB, and CD is a 127.2–161.8% extension of BC). Point D marks a potential price reversal and serves as the building block for more complex patterns such as the Gartley and Butterfly.