ABC BullishThe target would be D. This is a correction pattern and is very common. Sometimes it can be an AB=CD in which the AB leg equals the CD leg and you can use the magnet to move the AB leg and project it from C. The targets can also be a bit shorter than the AB leg or an extension of the AB leg. Targets are calculated using fib levels. I use the .382, .618 and .786. For targets 2, I use the 1.272 and the 1.618 but realizing not every security reaches targets 2, some do reach every price level in targets 1. I use my gut on that one. Sometimes I am happy to reach the first target (o: and focus on targets 1 as for many securities targets 2 are down the road and may not ever get here depending on the security and the bullishness or bearishness surrounding the market. There are possibly other ways to calculate targets and we are all different.
When I eyeballed this the BC leg appeared a bit short in comparison to the AB leg. The Auto Fib Retracement tool on here can help nail down C. Retests of C are common. Any pattern can fail and price can go below C. If it goes too far below C, the ABC pattern has failed, so I wait for a double bottom, or another harmonic pattern to form. ABC bullish is a harmonic pattern as it is part of an ABCD pattern, just D is not here yet (o:
Long entry level is a level one chooses that is over immediate resistance, and is also a level where algorithmic/computer trading may kick in as these are programmed to buy at certain levels. Sometimes you will even see a gap up when this happens. Ideally, long entry level or above is where you enter the trade. Long entry level is subjective and you may see another level. I have entered early before, before long entry level and paid the price for doing so. My money was tied up in a security that was not moving and even moving down. Sometimes entering closer to C or near the handle low of a cup pattern can pay off. Sometimes not. It is not fun, and it is not financially lucrative to go in the hole while you wait on price to finally move. Patience can be a virtue.
No recommendation and V is not to long entry level (o:
If a security gets to be too much of a pain and causing me stress, then there are plenty of other securities to choose from (o: I have found that getting too focused on a certain name can screw me sometimes. If price is already out the roof and even arcing, I try to say to myself "Laura, you missed that one" and move on to the next one.
This one is close to support. Any pattern and any level of support can fail.
