There are a few ways to use AB/CD legs in trading.
For day traders, knowing where you are within the AB/CD pattern can generally help you stay on the right side of the intraday trend.
Short-term traders can play the AB/CD legs in both directions, and there are multiple ways to stack and layer these trades.
For long-term investors, it's typically not a bad spot to add to existing positions when a CD leg completes on your timeframe. It's a way to keep your cost basis down and add on weakness, especially if it's an area of confluence. When a pattern's move completes, it generally needs time to pause and is likely to see a reversal, even if it ends up being a dead cat bounce.
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