Bearish AB=CD
Definition
A harmonic two-leg rally where CD mirrors AB — sellers act at D.
Psychology
The second rally copies the first — sellers wait exactly there.
Real-life analogy
💡 Two identical ladders up to a diving board — the jump comes at the top rung.
Expected direction
down
Entry / Stop / Target
Entry: At/near D completion with bearish confirmation (e.g. shooting star). · Stop: Above D by a small buffer. · Target: 38-61.8% retrace of AD, then C.
Historical behaviour
Cornerstone of harmonic trading.
Illustrative success rate
Symmetry completes ~60-70% · Medium reliability
Common beginner mistakes
- • Shorting before D actually completes
Quick quiz — did you understand?
1. Is the Bearish AB=CD generally considered bullish, bearish, or neutral?
2. After a confirmed Bearish AB=CD, the expected direction is usually:
3. Which is a common beginner mistake with the Bearish AB=CD?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.