🌟 Capital Market Chronicles – Episode 273: TECHNICAL ANALYSIS – HARMONIC PATTERNS (Part III) 📐📊
“Simple patterns teach the deepest lessons.” 📘📈
Let’s meet the basics.
Because in harmonics, simple doesn’t mean weak — it means reliable.
🔷 ABCD Pattern – The Foundation
The ABCD pattern is harmonic kindergarten 🎒
And yes — it still works frighteningly well.
Structure:
-
AB: Impulse move 🚀
-
BC: Retracement (the “is this over already?” phase 🤔)
-
CD: Projection similar to AB
📌 Key Idea:
👉 AB ≈ CD
That’s it.
No drama.
No overthinking.
What this pattern quietly teaches traders:
🧘 Patience — waiting for completion
⚖️ Symmetry — structure matters
📏 Discipline — close enough is not enough
Simple.
Elegant.
Completely unforgiving if you rush it 😅
🔶 Gartley Pattern – The Classic
The Gartley pattern is recognised by its clean “M” (bearish) or “W” (bullish) shape — and it’s been humbling traders since the 1930s 📉📈.
Structure:
X → A → B → C → D
Key Fibonacci relationships:
-
B ≈ 61.8% retracement of XA
-
D completes near the 78.6% retracement
Why traders keep coming back to the Gartley:
✔ Clear structure
✔ Well-defined reversal zone
✔ Excellent risk control (your stop-loss actually makes sense 🛑)
But a gentle reminder ☝️
A Gartley without correct ratios is just…
a nice-looking shape 😄📐
And markets don’t pay for artwork.
🧠 Final Thought
Master the ABCD and Gartley, and everything else starts to feel less intimidating.
Harmonics reward those who respect the basics —
and punish those who skip class 🧑🏫😅
📖 Next Episode:
When markets get extreme — Butterfly, Crab & Deep Crab patterns 🦋🦀📊
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