Equal Legs! What does it mean?

The Equal Legs is a term used in the technical analysis to indicate that the magnitude of a movement is equal to another movement joined by a correction. It is represented as follows:

ABC

 

Where the magnitude of the swing A is equal in magnitude to the swing C (A = C) and B is the correction.

This method is widely used in Elliott Waves identifying targets or ending cycles and usually a very powerful tool if it used the right way. Here are some examples to further explain the concept

GBPUSD 8H

Captura-de-pantalla-2014-03-20-16.29.15

 

GBPCHF 8H

Captura-de-pantalla-2014-03-20-16.40.03

 

EURJPY Weekly

Captura-de-pantalla-2014-03-20-17.27.46

 

What do you think about the equal legs power?

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