Harmonic pattern "5-0": almost 100% probability of working out

One of the most recent harmonic models that have been discovered relatively recently is harmonic 5-0 pattern. С. Kornay published the first materials on this development in 2004-2005. This pattern, like all of its "colleagues", can be used in absolutely any market by virtue of its construction based on Fibonacci levelsthat describe practically everything in this world.

Description of the harmonic pattern "5-0"

Let's describe the main characteristics of the model:

  • The formation of the pattern "5-0" begins with a weak movement in the form of a segment AB at the end of the previous bearish trend. Point B should not be above the 161.8% level from the 0X movement.
  • pulse BC relative to the segment AB should be organized in the range from 161.8% to 224%.
  • In the classic version of the model, the CD rollback ends at the 50% level.
  • rays AB=CD, i.e. a channel can be constructed by these four vertices.

The bullish version of the "5-0" pattern is shown in Figure 1. The characteristics of the bearish pattern are exactly the same, only the directions of movement are mirrored, which is clear by default.

Fig. 1. The ascending pattern "5-0". - Fibolevels.
Rising pattern "5-0" - Fibo levels

Practical example of the harmonic pattern "5-0"

Figure 2 shows a variant of the bull pattern "5-0" in the market practice. The formation of the pattern takes place in upward channel, and as we can see, after the market placed point D on the reference level, it was followed by a strong price increase. The naked eye can see that AB=CD and take exactly 50% from the momentum of BC. This is a perfect market example, which clearly follows the classics. The harmonic pattern "5-0" is extremely rare, but if it is still formed by the market, the probability of it working out is more than 90%.

Fig. 2. The "5-0" pattern on the EURUSD chart (H4).
The "5-0" pattern on the EURUSD chart (H4)

By including signals of harmonic models in your own trading system, you can achieve a qualitative growth of its prediction accuracy and high rates of return.

Other articles about harmonic patterns

Leave a Reply

Back to top button