1. AB=CD/Gartley
Webcast starts at 8:30 EST
Leslie Jouflas Founder of Presents AB=CD and Gartley Patterns ©2010 Trading Live Online, LLC. All Rights Reserved D C B A

2. Disclaimer – Please Read
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING: (1) IF YOU PURCHASE A COMMODITY OPTION, YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. (2) IF YOU PURCHASE OR SELL A COMMODITY FUTURE OR SELL A COMMODITY OPTION, YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUIRED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT. (3) UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A "LIMIT MOVE." (4) THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A "STOP-LOSS" OR "STOP-LIMIT" ORDER, WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS. (5) A "SPREAD" POSITION MAY NOT BE LESS RISKY THAN A SIMPLE "LONG" OR "SHORT" POSITION. (6) THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY COMMODITY TRADING BEFORE YOU TRADE.
Please read this carefully

3. Books By Leslie Jouflas
“Larry Pesavento and Leslie Jouflas, the quintessential traders of chart patterns and the techniques of past masters of technical trading, have put together a compilation of their studies. Their experience extends over forty years. This book covers the essence of chart patterns trading plus the mental preparation necessary for successful trading. There is something in this book for both the beginner and experienced trader, Highly recommended.”
- John Hill, President, Futures Truth Co.
Now available in 4 languages – English, Japanese, Chinese and Italian.
TRADE What You SEE
How to Profit from
Pattern Recognition

4. Books By Leslie Jouflas Essentials of Trading:
It’s Not WHAT You Think
It’s How You Think

5. Leslie Jouflas - Founder of tradingliveonline.com
Leslie began trading in 1996 and left a 17-year airline career in 2000 to pursue a full-time trading career. She has studied many trading methodologies, including Elliott Wave, options strategies, momentum trading, classical technical analysis, and Fibonacci ratios and patterns. After trading stocks and options on stocks, she now trades futures and commodities with an emphasis on the S&P 500 market. She has managed private accounts as well as trading her own private account.
Leslie has co-authored two books, Trade What You See – How to Profit from Pattern Recognition (Wiley & Sons, 2007), published in English and Japanese and Essentials of Trading: It’s Not WHAT You Think, It’s HOW You Think (Traders Press, 2006), and has many published articles for such publications as Trader’s Journal, Active Trader, and Technical Analysis of Stocks & Commodities.
Leslie founded website which is an educational website and live trading room where traders learn real time trading skills. The website also offers the Trading Live Online Annual Members Coaching program for traders wanting to learn a proven trading method, learn a process to increase trading skills, and learn to trade to achieve consistent results.

6. The AB=CD Pattern
The AB=CD Pattern is one of the most basic and simple patterns to identify in technical analysis
This pattern is also an integral part of the Butterfly pattern, the Gartley Pattern and the 3 Drives pattern
Pattern is described in the 1935 book, Profits in the Stock Market, by H.M. Gartley
Page 249 of this book describes “Practical Use of Trendlines” Basically describing the AB=CD and Parallel Channel lines
Learn the AB=CD and then you will be ready to study other patterns that contain the AB=CD such as the Gartley Pattern and the 3 Drives and Butterfly. D C B A

7. Parallel Trend Lines F D B E C A www.tradingliveonline.com
HM Gartley 1935 book Profits in the Stock Market outlined this pattern. Basis of the AB=CD and the AB=CD is found in other patterns such as; Gartley, Butterfly and 3 drive pattern. 7

8. SP 500 Emini Parallel Channel Lines
Parallel Channel will contain AB=CD patterns that test the support and resistance areas

9. Nazdaq 15 Minute Parallel Channel
Recent Parallel Channel in the Nazdaq on the 15 minute chart. Gap down out of the channel.

10. Harmonics
Using a simple cloned line you find the harmonics or repetitive swings in any market or stock
SP Minute Chart
Exercise you can do at your computer, randomly go through charts and find the repetitive swings. Repetitive swings form tradable patterns. Downswings also repeating….. 10

11. Random Swings? Dow Futures 60 Minutes www.tradingliveonline.com
Random swings, you can see the parallel channel forming. Tough for breakout traders, these types of swings occur frequently. 11

12. Order in the Swings Dow Futures 60 Minutes www.tradingliveonline.com
All ‘cloned’ lines, very symmetrical, “measured’ moves forming the ab=cd pattern. Also note the swings down and the harmonic lengths. 12

13. Structure of the AB=CD Pattern
The Pattern is formed with 3 legs
The first leg forms (AB), then the second leg forms (BC) which is a correction
Once the correction is complete the third leg forms (CD)
Fibonacci ratios are used to define the structure
The completion at the D point can be either 1.0 or 1.27 (can also be larger extension, 1.618)
Markets move in waves…repeats on a regular basis, root pattern of other strong trading patterns…Gartley, Butterfly, 3 Drive. 13

14. AB=CD Pattern – Lightning Bolt
AB=CD Buy Pattern D C B A
AB=CD Sell Pattern D A B C
Markets move in waves…repeats on a regular basis, AB=CD is a wave structure with 3 legs… and can be applied to either range trading or trend trading. root pattern of other strong trading patterns…Gartley, Butterfly, 3 Drive. 14

15. NOTE: The symmetry in the number of bars forming the AB and CD legs
AB=CD Buy Pattern and AB=CD Sell Pattern
SP EMINI Chart D A B C
Note the lightening bolt shape of the pattern, remembering this can help a trader new to learning this pattern. C can not exceed A . The ab=cd buy pattern has about 8 bars each down leg…Asymmetrical would be a cd leg of 2 – 3 bars and a change of slope or angle, steep slope or angle or wide range bars would be clue either a trend or the pattern will extend to the 1.27 or beyond. C B D A
NOTE: The symmetry in the number of bars forming the AB and CD legs 15

16. Fibonacci Ratios for ReplacementD B
. Some markets may trade more to one ratio than another, this may change at times, example; may trade consistently to the .618 then to the 786. A .382 retracement may indicate a trend or stronger move.
Extensions I use mainly are the 1.27 and the 1.618 C A 16

17. Pattern Structure with Fibonacci Ratios
The .618 is the retracement of the A – B leg is the Fibonacci extension of the B – C leg. As price moves in favor of the pattern Fibonacci Ratios can be used in price targets and moving stop losses.

18. Important Characteristics of the AB=CD Pattern
40% of the time the AB leg will be equal to the CD leg
60% of the time the CD leg will be a variation or extension of the AB leg
The two legs may or may not be perfectly symmetrical
A variation can be:
CD leg is an extension of the AB leg by 1.27 to 2.00 (or greater)
The CD leg has a slope or angle steeper or wider than AB
40 percent of time AB will be equal to CD
60 percent CD will be a variation or extension of AB leg, it can be longer
CD leg has an angle steeper than AB – could be a warning sign momentum in that direction 18

19. Comparison Charts AB=CD With 1.0 Completion AB=CD With 1.27 Completion
Chart on left = 1.0, chart on right Can complete at either, a strong start of the cd can get stronger move and complete at the Look at whole picture of market, where is support and resistance, Fibonacci ratios, etc. Determine the risk in the trade. C A

20. AB=CD Completion at the 1.0
AB can Equal CD or CD can be an Extension of AB
AB=CD Completion at the 1.0
An example of a 1.0 completion would be:
AB leg = 10 points
CD leg = 10 points D D B C
Example of calculating the Fibonacci extension ratios C A 20

21. AB=CD Completion at the 1.27
AB can Equal CD or CD can be an Extension of AB
An example of the 1.27 completion would be:
AB leg = 10 points
CD leg = 12.7 points
AB=CD Completion at the 1.27 D B C
Calculating the 1.27 Fibonacci extension ratio C A 21

22. Steep Angle CD Leg Watch the angle of the CD leg for symmetry
This example shows a steep CD leg with long bars
Sometimes price will trade to one of the extension levels
Sometimes it can indicate a trend in progress
SP 500 EMINI – 5 Minute AB=CD D B C A

23. Extensions of the CD Leg
This AB=CD Pattern extended to the and then turned down D D B
I like to keep the on my chart to remind myself to watch that area. C A
SP 500 EMINI – 5 Minute AB=CD

24. Gartley 222 Pattern
The AB=CD Pattern will also form within ranges and as tests of previous highs or lows
This chart shows a swing up and the AB=CD that formed as a re-test of the lows of that swing
This is called a Gartley 222 Pattern named from page 222 of Gartley’s 1935 book Profits in the Stock Market and was named this by Larry Pesavento
This is a pattern that can be used in range trading or as a test in a new bull or bear market A C B
Gartley222 is named from Profits in the Stock Market from a description of corrections on page 222. D X

25. Gartley 222 Buy Pattern
This Gartley 222 Buy Pattern moved down to the 1.27 D completion area
It is not possible to know where the market will trade to, that is, the 1.0 completion or the extension completion points
The trader must look at the trade and determine if it is within the trade management/risk rules of their trading plan A C B
One reason I like to keep the actual ab=cd drawing on my chart. D X

26. Gartley 222 with Fibonacci Ratios
This example of our Gartley 222 Buy pattern shows how Fibonacci Ratios can be used to define the pattern structure
Each swing can be measured or defined with a Fibonacci Ratio
The AB=CD are two triangles
For an in depth review of this please refer to ‘Trade What You See – How to Profit from Pattern Recognition’ A C B
Study the Fibonacci ratios of the retracements and the extensions D X

27. Nazdaq Gartley Sell
Remember the AB=CD is “anchored” to a previous swing and is contained within that swing. If you are first learning this pattern start with patterns that have completions around the .618.

28. Nazdaq 1600 Tick Gartley Sell With Fibonacci Ratios

29. One Common Question
“Can you trade the C leg down (or up) to the D completion point?” A C B D?

30. Will this Form an AB=CD Buy Pattern?
Let’s look at the next slide… B D?

31. Wait for Patterns to Complete
Have patience to wait for your trade setups to form A C B

32. SP 500 Daily Chart at .618 www.tradingliveonline.com
This and the next chart show example of combining time frames

33. Gartley Sell Pattern 1600 Tick
Smaller time frame formed entry setup into the longer time frame retracement area

34. SP 500 Emini 60 Minute AB=CD Sell Pattern
The completion at the 1.0 is around 1100
The completion at the 1.27 is around 1123 D B
On longer time frames the completion points can be quite a distance apart, learn to use shorter time frames for entries and to manage risk, sometimes when the price trades to a larger completion point the trader can re-enter the trade. C A

35. Multiple Patterns within the AB=CD

36. Dow Emini Multiple Patterns

37. SP Emini Parallel Channel with AB=CD Sell
Great example of the SP 500 Emini forming a Parallel Channel and AB=CD Sell. This is also formed and completed very close to a very large resistance area.

38. Introducing the New TLO Live Trades Series!
*Trading Live Online is pleased to introduce the new TLO Live Trades Series!
“I created the TLO Live Trades Series for traders as something I wish I had found when I was learning trading!”
Live trades recorded over several trading sessions. This package includes AB=CD and Gartley pattern setups with a special bonus recording of the 3 Drive pattern managed in a trend.
Invaluable insights as the patterns are forming in real time. The TLO Live Trade recordings answer all the questions traders come across in live markets to help them to make important trading decisions.
Trading tips and nuances are covered for entries and how to re-enter a trade, profit targets, stop loss placement and trader psychology such as dealing with head chatter like taking profit targets too soon.
Valuable information for high probability trade setups by reading support and resistance areas, using index divergences, tick charts and bar charts.
REFUND POLICY: Due to the educational nature of these educational materials, Trading Live Online, LLC is unable to offer any kind of refund on this product. We will promptly repair any defective link
These recordings are going to help traders make decisions as price is moving. The Trading Live Online Live Trade Series AB=CD/Gartley Patterns covers multiple patterns and how to handle choosing and entry area, what to do when the trade is going against you, using indexes as divergences, managing stop losses and profit targets and much more. These recordings will strengthen and improve the trading skills. Traders can watch these trades over and over to learn how to manage trades using these patterns.

39. Special Price Offer Regular Price for the AB=CD/Gartley Package
TLO Live Trades Package is $127
Special price of only $79
AB=CD/Gartley Webinar Recording
Three Ways to Use the 3 Drive Webinar
Bonus recording of the 3 Drive Pattern in a trend using the Euro
Order Here
REFUND POLICY: Due to the educational nature of these educational materials, Trading Live Online, LLC is unable to offer any kind of refund on this product. We will promptly repair any defective link
Copyright 2009 – 2010 Trading Live Online, LLC All rights reserved. Trading Live Online, LLC
This is a great product for traders who like to study on their own. Traders have access to this for 2 years and any trader who would like longer just needs to us at and let us know.

40. Order Here - . http://www.tradingliveonline.com/abcd-gartley-package
This is everything included with your TLO Live Trades Series - ABCD/Gartley

41. Learn How to Be Successful as a Trader
STEPS FOR SUCCESS
Increase your probability of success
Learn trading skills for consistent profits
Learn to choose high probability trade setups
Make money in down markets
Learn to trade with confidence by minimizing your risk
Learn real-time trading in all market environments
Learn to treat your trading as a business
Visit us here -

42. What’s the Next Step? Live Education
Live Charts Forum to learn setups live
Webinars / Seminars
Classes on Pattern Recognition
Annual Members Program
3 Day Recorded Seminar now available
First 2 Weeks Only $9.97-