PART 1 AB =CD ( The Retrace )
You will find Harmonic patterns everywhere.. All you have to do is look..
Once you've established an AB=CD Pattern is close to being complete or has been completed it's game time.
In a down trend you will find Bullish AB = CD patterns. That's bc the market has moved down, over extended it'self momentarily and is ready for a retracement / correction. (does not mean trend is dead Which is where you make your second jack pot of the trade.)
I like to set realistic Targets or TPs which is why on my trades you will see my targets are more than likely going to be the 50% FIB retracement Level. ( The King FIB level )
That is where I take profit no matter what.
PART 2 AB = CD ( The Extension )
Once you establish a nice rejection at either the 50% or 61.8% FIBS It's time to short.
My past experience tells me to trade conservitively but to each their own. You are almost guarnteed going to hit the -.232 extension after every retracement.
The second most likely target is the -61.8% Extension as seen in this chart.
I always take profit at the -.232 extension after a 61.8 and 50% bounce.