Crab Pattern

Crab Pattern

Crab Pattern

The "crab" harmonic pattern is one of the Hartley formations. It was discovered in 2000. Due to the Fibonacci levels, this figure is a fairly accurate model.

Note that the "crab" candle model applies the 1.618 Fibo extension from the XA movement. This is a critical level, and it is often where the reversal area occurs. As for the Fibo levels 2.618, 3.14, 3.618, they also affect the formation of the "crab".

It is important to emphasize that one of the most common models of elongation is AB=CD at the level of 1.618. the projection movement BC, as well as the correction zone XA are responsible for the formation of the price reversal area. In the structure of the "crab" pattern, the AB=CD model is difficult to notice, however, after a while it will be obtained automatically, since certain symmetries will be visible in each figure of technical analysis.

If a trader sees a sharp rebound of quotes from the reversal zone, it means that he is dealing with the Price Action pattern. However, if the price broke through the reversal area, then there is every chance that you will not see a high-quality development of this harmonic pattern.
How do I determine the "Crab" model on the chart?

For the "crab" to be considered complete, point B must be placed at one of the three correction Fibonacci levels 0.618%, 50.0% or 38.2%. The sun should end its movement at the level of 3.14, 2.618 or 3.618. to complete the defining component of the pattern, the projection of 1.618 from the segment XA will be considered. From 0.382 to 0.886, the point C must be Located
From point X, the formation of the bullish "crab" formation begins. A Strong upward movement ends at point A. a downward correction ends at point B. Futile attempts to update price highs (point C) should occur below T. And between Fibo levels from 0.382 to 0.886. The formation of the pattern completes at point D. It is recommended to open long positions from BC between the levels 2.618 – 3.618 and from XA at 1.618.
Bearish " Crab "pattern»

To navigate the definition of goals for all harmonious models, we will present the patterns schematically below. The first target for the bearish candlestick pattern is the formation of point C (the nearest support area). At the level where point a was formed, There will be a second goal. Naturally, no one forbids you to set your own goals.
This candle model differs from the standard "crab" only in that it has a different point B. its location is at the Fibo level of 0.886. This is what the "deep crab" pattern looks like on the chart.
This candle model differs from the standard "crab" only in that it has a different point B. its location is at the Fibo level of 0.886. This is what the "deep crab" pattern looks like on the chart.

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