Read the XABCD ratios with the right denominators
For a bullish candidate, X is a low, A a high, B a lower retracement, C a rebound below A and D a decline below B but above X. Reverse the directions for the bearish case. Define each leg length as the absolute difference between its endpoint prices; reject a zero-length denominator.
- The D retracement starts at A: for a bullish XA from 100 to 200, the 0.786 level is 200 - 0.786 × 100 = 121.4. Measuring 78.6% upward from X would produce a different price.
- Ratios constrain the same five prices, so they are not independent settings. Exact equality at every nominal ratio may be impossible; a detector needs an explicit confluence and tolerance policy.
- The harmonic-pattern overview compares multiple families. AB=CD examines the four-point leg relationship. This page adds the X anchor, Gartley-specific ratio conventions and confirmation timing.
| Measurement | Calculation | Carney reference |
|---|---|---|
| B retracement | |A - B| / |A - X| | 0.618 |
| C retracement | |C - B| / |A - B| | 0.382 to 0.886 in Volume One |
| D retracement | |A - D| / |A - X| | 0.786 |
| BC projection | |C - D| / |C - B| | 1.27 or 1.618 |
| Leg equality | |C - D| / |A - B| | 1.0 for equivalent AB=CD |