1. XA leg must be the largest price move.
2. D is equal to .786 of XA (some use .618 or .786).
3. D should not exceed X.
4. AB should equal the retracement of .618 of the XA leg.
5. A should be below/above C.
6. D must complete below/above point B.
7. The pattern should posses a clear AB=CD pattern.
8. Stop loss should be above/below X.
9. Best when formed after a strong price move.
10. The XA is the counter trend to the move.
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Harmonic Trading
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