Harmonic 5-0 Pattern

Harmonic 5-0 Pattern

Harmonic 5-0 pattern is a relatively fresh pattern of Harmonic Trading. It was described for the first time in Scott M. Carney's book "Harmonic Trading: Volume Two" published in 2007.

Depending on the amount of knowledge you have about harmonic patterns, the 5-0 will look different, and this is mainly because the 5-0 pattern begins at 0. If you are familiar with seeing XABCD, then 0XABCD will undoubtedly look different.

5-0 pattern starts from 0 unlike other harmonic patterns that start with X. It starts from 0 and is complete at D. 0XABCD is used to symbolize this pattern. 5-0 pattern totally depends on Fibonacci ratios. If any Fibonacci ratio is not meeting a specific criterion, then it will be an invalid pattern.

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Harmonic 5-0 pattern trading rules :

The criteria for identifying the 5-0 pattern are as follows:

   ⦁ 0XA is an initial wave. Pattern starts after this wave.

   ⦁ AB wave must be between 1.131% and 1.618% retracement of XA wave.

   ⦁ BC wave must be between 1.618% to 2.242% retracement of wave AB.

   ⦁ CD wave must retrace to 0.500% of BC.

   ⦁ Point C should lie between 0.886% and 1.131% of 0 to X wave.

   ⦁ At point D, the 5-0 pattern completes.