Educational : ABCD pattern , followed by 38.2-50 % correction

In the previous post we learn the basic ABCD

What should I expect after ABCD ?
1. Full Market Reversal : Major trend reversal
2. Correction to 38.2-50% of AD ( be-careful not from CD ) very important
3. Extension of D to extend more than 100%, 127% or 161%

In this example we study case 2

Price retraced to 38.2-50% of AD, to build point X, after X, Market will continue to fall, building new ABCD pattern.

The NEW A-D-X Formation, will be a new ABCD pattern and new targets are drawn, bigger one, and so on.

This how market moves Basically, After each ABCD you have 3 options. not 4

Keep in mind point X : will be Corrective wave, so it will have Corrective structures like Triangles, flat, contracting or expanding, Flat or tilted down or up, so it is harder a little, because it will burn time, to accumulate more orders before the next big move.

Mastering ABCD formations will give you an edge in the market, combined with Fibo levels, and big market review. it is very easy , yet super Powerful.

Thanks,
Fx Market Strategy team