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THE HARMONIC PATTERNS SERIES: III THE CRAB PATTERN

NSE:NIFTY   Nifty 50 Index
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
Comment:
Comment:
Comment: Due to minimal interest shown by readers, this series is discontinued.
Comment:
Good knowledge, keep sharing
Reply
@Yp2303, thanks.
Reply
Thanks for sharing your knowledge
Reply
@Aragg, welcome.
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please continue. We have learnt so much from your posts.
Reply
@kdave, thanks.
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Usually the readers here are novice traders, if you are thinking to get likes and share the content needs more attractiveness....but the purpose here is not likes and share
Motivation is hard to find friend :)
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Bravetotrade EbrahimKhan
@EbrahimKhan, Attractiveness ?? I wud never draw a real crab to attract viewership :)

I could v ended this series in a single post but there was need to elaborate each and every pattern to highlight the differences. That was the only purpose behind the series.

Sharing knowledge brings satisfaction and minimal viewership.. discouragement.
Reply
Haha! Plese do not stop! Readers here lazy people ! They come and read everything but lazy to press the like button or say their views...
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@Parasuram, But one touch is the only motivation for a writer here.

Ironically, readers do hit likes on funny pictures.
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