THE HARMONIC PATTERNS SERIES: III THE CRAB PATTERN
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Hi,
I am back with one more harmonic Pattern -- The CRAB
For a brief overview about harmonic pattern fundamentals, first go to the Post One of this series (link will be soon in the update section).
CRAB PATTERN
In the BAT and the Gartley the price action in the last leg did not stretch beyond the Point X but In this pattern last leg stretches beyond X. In this case it is the B-C projection which may sometimes (when D extends beyond 2.618 B-C) help in identifying the Pattern in advance.
X-A: A strong leg which ends at an important Support/Resistance level.
A-B: Should retrace between 38.2 to 61.8% of X-A.
B-C: Should retrace between 38.2 to 88.6 % of A-B. This leg should not extend beyond point A.
C-D: The most important leg to confirm the Crab pattern . C-D should retrace 161.8% of X-A and not more than that.
C-D=1.27 to 1.618 AB: Second important confirmation, C-D leg should complete between 1.27 to 1.618 times A-B
B-C Projection: Point D should be between 2.618 to 3.618 B-C projection. You can notice the difference between Bat, Gartley and Crab B-C projections.
Pattern completes at point D so it is the most important point in the pattern. If all the above conditions are valid, a reversal is expected from this point.
# In Bullish harmonic patterns an upward reversal is expected at point D, whereas in Bearish patterns a downward reversal is expected at point
D.
# Normally a buy/sell order is placed at point D, expecting some sort of reversal, and targets are placed at 38.2% and 61.8% of A-X.
# A complete reversal should not be expected at point D in any harmonic pattern . Only the further price can provide confirmations about trend reversal.
Trade safe, be healthy
Hit like/comment if this information is useful.
Regards
Bravetotrade
I am back with one more harmonic Pattern -- The CRAB
For a brief overview about harmonic pattern fundamentals, first go to the Post One of this series (link will be soon in the update section).
CRAB PATTERN
In the BAT and the Gartley the price action in the last leg did not stretch beyond the Point X but In this pattern last leg stretches beyond X. In this case it is the B-C projection which may sometimes (when D extends beyond 2.618 B-C) help in identifying the Pattern in advance.
X-A: A strong leg which ends at an important Support/Resistance level.
A-B: Should retrace between 38.2 to 61.8% of X-A.
B-C: Should retrace between 38.2 to 88.6 % of A-B. This leg should not extend beyond point A.
C-D: The most important leg to confirm the Crab pattern . C-D should retrace 161.8% of X-A and not more than that.
C-D=1.27 to 1.618 AB: Second important confirmation, C-D leg should complete between 1.27 to 1.618 times A-B
B-C Projection: Point D should be between 2.618 to 3.618 B-C projection. You can notice the difference between Bat, Gartley and Crab B-C projections.
Pattern completes at point D so it is the most important point in the pattern. If all the above conditions are valid, a reversal is expected from this point.
# In Bullish harmonic patterns an upward reversal is expected at point D, whereas in Bearish patterns a downward reversal is expected at point
D.
# Normally a buy/sell order is placed at point D, expecting some sort of reversal, and targets are placed at 38.2% and 61.8% of A-X.
# A complete reversal should not be expected at point D in any harmonic pattern . Only the further price can provide confirmations about trend reversal.
Trade safe, be healthy
Hit like/comment if this information is useful.
Regards
Bravetotrade
Nota
Nota
Nota
Due to minimal interest shown by readers, this series is discontinued.Nota
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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