The CD pattern screw, also known as the lightning bolt, is a common trading indicator that is used to identify price changes in financial markets. It is a three leg pattern, consisting of two equal legs marked AB and CD that form a zig-zag shape.
The AB-CD pattern is most commonly seen in strongly trending markets, so it’s not a reliable indicator for all financial markets. However, it can help traders identify when a market is about to change direction so they can buy and sell accordingly.

AB-CD patterns usually occur when there’s a sharp increase in price between points A and B, followed by a retracement of the same amount of price at point B. Ideally, BC should retrace at least 61.8% of AB, and CD should be at least 127.2% of BC, but in some cases the ratios can vary greatly.
To make a CD pattern screw, first choose a material. Stainless steel is a good choice, as it won’t stain or corrode like ordinary metals in the presence of water. Moreover, stainless steel has excellent strength and ductility and can be easily polished to create a beautiful finish.