(If figuring 1.272 or any other extension number, simply use that number in place of 1.618.)
The number of time bars in the AB=CD pattern will usually range from
five to eight bars. When the CD leg is extending beyond eight bars in an up
or down move, the probability is for a price extension where CD will be
1.272, 1.618, or greater of the AB swing.
The examples in this chapter give a good point of reference to study
these types of patterns. The reader should keep in mind that these patterns are only probabilities; they are not certainties, and trying to use these
patterns without a solid understanding of them and a sound money management strategy is equivalent to trading suicide.