Harmonic Patterns Crab And Deep Crab my point of view
A proper Crab pattern needs to fulfill the following three Fibonacci rules: AB= retrace between 0.382 – 0.618 Fibonacci Retracement of XA leg; BC= minimum 38.2% and maximum 88.6% Fibonacci retracement of AB leg; CD= Poses a target between 2.24 – 3.618 Fibonacci extension of AB leg or an ideal target of 1.618 of XA leg.
Crab Pattern
The XA retracement levels are checked to validate the retracement (here, pivot B forms just near 61.8%, barely making it to qualify for the Crab pattern
At point C, we notice the retracement falling within AB’s 88.2% – 38.2% zone
Eventually, price surges higher to reach to 161.8% Fibonacci extension of XA and fits within the 222.4% – 361.8% extension of the CD leg
Following the high, a short position could be taken, with stops at the high of CD, which marks the price reversal zone
The Deep Crab pattern
The Deep Crab pattern on the price chart differs from the Crab pattern on one main aspect, which is the swing point B.
While in a regular Crab pattern, the B retracement fits within 38.2% – 61.8%% retracement of XA, with the Deep Crab pattern the swing point B sits at the 88.6% retracement level of XA.
Crab Pattern
The XA retracement levels are checked to validate the retracement (here, pivot B forms just near 61.8%, barely making it to qualify for the Crab pattern
At point C, we notice the retracement falling within AB’s 88.2% – 38.2% zone
Eventually, price surges higher to reach to 161.8% Fibonacci extension of XA and fits within the 222.4% – 361.8% extension of the CD leg
Following the high, a short position could be taken, with stops at the high of CD, which marks the price reversal zone
The Deep Crab pattern
The Deep Crab pattern on the price chart differs from the Crab pattern on one main aspect, which is the swing point B.
While in a regular Crab pattern, the B retracement fits within 38.2% – 61.8%% retracement of XA, with the Deep Crab pattern the swing point B sits at the 88.6% retracement level of XA.