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# Crab Pattern™

“The Crab is a precise Harmonic pattern that I discovered in 2000. The Crab is a distinct 5-point extension structure that utilizes a 1.618 projection of the XA leg exclusively. This is the most critical aspect of the pattern and the defining level in the Potential Reversal Zone (PRZ). The extreme (2.618, 3.14, 3.618) projection of the BC compliments the 1.618 XA extension. In addition, the Crab primarily utilizes an alternate AB=CD to compliment the PRZ. Although a minimum AB=CD completion is necessary for a valid structure, the alternate 1.27 or 1.618 calculation are the most frequent cases. In fact, the 1.618 AB=CD pattern is the most common alternate calculation utilized in the structure. It is important to note that the alternate AB=CD pattern within the Crab is the least important number in the PRZ. The combination of the 1.618 projection of the XA leg and the extreme BC projection usually creates a distinct range for the completion of the pattern. In fact, the AB=CD calculation is probably the least important in the Crab than all other patterns. Although the AB=CD structure is less significant in the case of the Crab, the pattern should still possess a distinct symmetry. Due to the extremity of the projections utilized in the completion of the pattern, the Crab frequently experiences sharp price action and dramatic reversals. It is quite common for price action to possess extreme ranges, quickly testing the Crab PRZ during the reversal. In fact, the price action experienced in Crab pattern completions is usually the most extreme of all of the patterns. Despite the typically severe reversals, the focus of the pattern’s completion should examine the 1.618 XA projection.”
Harmonic Trading: Volume One Page 136
(Copyright Scott M. Carney 2010 Financial Times Press)

The Crab Pattern™, is a Harmonic pattern™ discovered by Scott Carney in 2001.

The critical aspect of this pattern is the tight Potential Reversal Zone created by the 1.618 of the XA leg and an extreme (2.24, 2.618, 3.14, 3.618) projection of the BC leg but employs an 0.886 retracement at the B point unlike the regular version that utilizes a 0.382-0.618 at the mid-point. The pattern requires a very small stop loss and usually volatile price action in the Potential Reversal Zone.

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