Bearish Crab Pattern in Harmonic Trading

Deep Crab pattern

On the chart,Deep Crab pattern Harmonic Trading varies from the Crab pattern in one major way: the swing point B.

While the B retracement of a conventional Crab pattern is between the 38.2 percent – 61.8 percent retracement of XA, the swing point B of a Deep Crab pattern is at the 88.6 percent retracement level of XA.

The AB =CD criteria is another qualifying condition for a deep crap formation. According to this criterion, the legs AB and CD must be of equal length.

Real-world trading this isn’t always the case, and you’ll need to be a little more flexible when interpreting. Deep Crab pattern Harmonic Trading will be challenging if you try to find the optimum mix of all the rules.

The Deep Crab validation rules are shown below.

1.The swing point B is an 88.6 percent retracement of the XA leg after the price leg XA.

2.BC can run up to 38.2 percent – 88.6 percent Fib ratios of the AB leg after swing point B, the next leg.

3.At 161.8 percent of the XA leg and an extensive (261.8 percent – 361.8 percent) extension of the BC leg, the CD leg reverses.

On a forex chart, we see an example of a bearish Deep Crab pattern. The EURJPY is the currency in question. Keep in mind that this isn’t a textbook example. However, it is a useful real-world example that you will see on your charts. Each trader must assess their own degree of comfort in terms of how strict they will be in following the specific guidelines for choosing the formations to trade.

Fibonacci extension

Extension of the CD leg, which falls between 261.8 percent and 361.8 percent Fibonacci extension of the BC leg. However, the Deep Crab pattern did not quite rise to 161.8 percent of the XA leg in this case. When determining whether a harmonic pattern is genuine or not, some subjectivity is necessary.

The Crab pattern’s stop loss and target levels are similar to the Deep Crab patterns. After the CD leg is constructed, long or short positions are chosen. Depending on whether you’re tall or short, stops are placed above or below the point D.

At point A and/or point B, targets are placed.

Deep Crab pattern is an uncommon occurrence, traders may have to filter aggressively to discover the proper pattern. This is where each harmonic trader will choose trades based on their unique preferences.


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