The topic of today's lecture will be a harmonic Gartley pattern, which is quite rare in the market - the "Crab" pattern. Harmonic pattern "Crab" was discovered relatively recently, in 2000, but has managed to win particular popularity among the adherents of harmonic analysis.
Description of the harmonic pattern "Crab"
Comparing it to with the "Butterfly Pasavento" harmonic pattern, we can determine the main difference - a relatively small amplitude of the segment AB, which in the "Crab" should not be more than 61.8% of the HA beam height. The best option would be a value in the region of 38.2% or 50%.
The main and obligatory condition for the formation of a harmonic pattern "Crab" is the height of point D - it must be at the level of 161.8% of the HA movement. Fibo parameters of other tops are standard floating:
- top C should be in the range 38.2% - 88.6% from the AB motion;
- The working range of the top B will be the levels 38.2% - 61.8% from the movement of the HA;
- except for the obligatory condition of the location of the top D relative to the movement XA, this point must be depending on the movement from BC at levels such as 224%, 261.8%, 361.8%, 423.6% Fibonacci.
A practical example of the "Crab" pattern
Figure 2 shows a market example Bears of the harmonic pattern "Crab". As we can see, this model confidently starts to work out right after reaching the obligatory level for the top D - 161.8% of the XA movement.
It is not uncommon to see "Crab" pattern models in the market with the top D ending higher than 161.8%. Such a harmonic pattern is called the "Deep Sea Crab". Usually, in such pattern the top B is formed above the level of 50% from the movement of the KA.
Including the signals of the harmonic pattern "Crab" in the calculation of entry points, you can get a great addition to your trading system.