This is a good example of geometry working in the market...in particular....the AB=CD pattern giving projected levels for a potential reversal of price.
You can see that the orange AB leg formed between October 2008 and April 2010. The price then retraced until July 2010, before continuing its upward path. At this point, the CD leg can be projected to create an "area of interest", in both price and time.
The blue AB leg formed between between June 2010 and Feb 2011 then retraced. Therefore in Feb2010, it was possible to make a second projection which created a second "area of interest" in price and time.
Obviously, these areas of interest are not places to go blindly short but they create a zone where, if you are long, you might want to tighten up your stops and if you are short, you may.
Some traders would use either of the "C" points to look to enter long on the assumption that the trend is continuing.
Note how the price turned exactly at the blue "D"
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