ABCD is a Fibonacci pattern that is a combination of 3 Point Extension and 3 Point Retracement. It is defined by four points A, B, C, and D, of which:
- Points A, B, and С form a 3 Point Extension pattern.
- Points B, C, and D form a 3 Point Retracement pattern.
It also keeps the Fibonacci proportions between its segments:
- The price difference between B and C is about 61.8% of the price difference between B and A.
- The price difference between B and A is about 61.8% of the price difference between C and D.
When the pattern is complete, it may suggest that the price is likely to find support or resistance at one of the Fibonacci levels calculated based on the price level of point D. Note that the Fibonacci levels are only displayed for the last Fibonacci pattern on the chart.