Bearish AB=CD Chart Pattern — How to Spot and Trade It
7/6/2026
chart-patterns
technical
bearish
A harmonic two-leg rally where CD mirrors AB — sellers act at D.
In plain words
Two identical ladders up to a diving board — the jump comes at the top rung.
What the classic books say
The Bearish AB=CD is a reversal pattern with reference reliability Medium and illustrative behaviour of Symmetry completes ~60-70% (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Cornerstone of harmonic trading.
Level by level
Beginner
The second rally copies the first — sellers wait exactly there.
Intermediate
CD ≈ AB completion into resistance defines the reversal zone.
Advanced
Time symmetry (bars in AB vs CD) sharpens the signal.
Trade plan (educational template)
- Entry: At/near D completion with bearish confirmation (e.g. shooting star).
- Stop-loss: Above D by a small buffer.
- Target: 38-61.8% retrace of AD, then C.
- Check the numbers with the Risk-Reward calculator before any entry.
Common beginner mistakes
- Shorting before D actually completes
Practise it now
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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