๐ Capital Market Chronicles – Episode 273: TECHNICAL ANALYSIS – HARMONIC PATTERNS (Part III) ๐๐
“Simple patterns teach the deepest lessons.” ๐๐
Let’s meet the basics.
Because in harmonics, simple doesn’t mean weak — it means reliable.
๐ท ABCD Pattern – The Foundation
The ABCD pattern is harmonic kindergarten ๐
And yes — it still works frighteningly well.
Structure:
-
AB: Impulse move ๐
-
BC: Retracement (the “is this over already?” phase ๐ค)
-
CD: Projection similar to AB
๐ Key Idea:
๐ AB ≈ CD
That’s it.
No drama.
No overthinking.
What this pattern quietly teaches traders:
๐ง Patience — waiting for completion
⚖️ Symmetry — structure matters
๐ Discipline — close enough is not enough
Simple.
Elegant.
Completely unforgiving if you rush it ๐
๐ถ 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 ๐๐.
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 ๐)
But a gentle reminder ☝️
A Gartley without correct ratios is just…
a nice-looking shape ๐๐
And markets don’t pay for artwork.
๐ง 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 ๐ง๐ซ๐
๐ Next Episode:
When markets get extreme — Butterfly, Crab & Deep Crab patterns ๐ฆ๐ฆ๐
⚠️ Disclaimer: This Blog is for general guidance only and does not replace personalised financial advice.
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