A-B-C-takeaways
A-B-C fractal
TAKEAWAYS
MAIN TAKEAWAYS
- Price never travels in a straight line for too long, it travels in zig-zags shaped as A-B-C
- Wave A is an initial Action, Wave B is a reaction to the first move, Wave C is a resolution to both preceding waves A and B
- In up looking A-B-C fractal the starting point of the wave A is the main support for the whole A-B-C up fractal. Reactionery Wave B down may come back up to the lowest point of A but never should violate it
- In down looking A-B-C fractal the starting point of the wave A is the main resistance for the whole A-B-C down fractal. Reactionery Wave B up may come back up to the highest point of A but never should violate it
- In up looking A-B-C fractals Wave C either retests or more often makes new higher high over a high made by Wave A.
- In down looking A-B-C fractals Wave C either retests or more often makes new lower low under a low made by Wave A.
The best way to understand how this pattern works is to study collection of charts with real life examples.
