Harmonic Deep Crab Pattern

Harmonic Deep Crab Pattern

The Deep Crab chart pattern is very similar to the standard crab pattern in terms of the formation and structure of the pattern. However, one difference between the bearish and bullish deep crab pattern and the crab pattern is the B retracement ratio.

While the B retracement ratio in regular crab patterns lies between 0.382% to 0.618%, but the B retracement level in the deep crab pattern must be at the 0.886% of Fibonacci ratio. 

The Deep Crab pattern can be a rare occurrence and therefore looking for the setup as outlined by the exact rules could mean that traders may have to filter aggressively to find the right pattern to trade.

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Harmonic Deep Crab pattern trading rules :

The criteria for identifying the Deep Crab pattern are as follows:

   ⦁ The XA wave is a normal price swing in the upward or downward direction.

   ⦁ The AB wave must be 0.886% retracement of the XA wave.

   ⦁ The BC wave can be either a 0.382% or 0.886% retracement of the AB wave.

   ⦁ The CD wave should be longest and usually 2.000% to 3.618% extension of the BC wave.

   ⦁ Overall, the CD wave should be 1.618% extension of the XA move.