Trends/Fibonacci and harmonic patterns

Crab pattern

A five-point shape with a long final leg, where D reaches 161.8% of the first leg.

Fibonacci and harmonic patternsBest on 6M, 1Y, 3YAlso called Crab harmonic
Crab pattern diagramIllustration of the Crab pattern shape. It is a sketch, not real price data.XABCD161.8% of XA
Illustration of the Crab pattern shape. It is a sketch, not real price data.

What it shows

The Crab was defined by Scott Carney. D extends well beyond X, to 161.8% of XA. The final leg CD is long compared with BC.

It is one of the deeper harmonic patterns, so the stretch from C to D is large.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Find five alternating swing points X, A, B, C, D.
  2. B must be 38.2% to 61.8% of XA.
  3. C must be 38.2% to 88.6% of AB.
  4. D must be 161.8% of XA (±5%) and CD 224% to 361.8% of BC.

Starting values: Ratio tolerance ±5%; B 38.2% to 61.8% of XA; D 161.8% of XA. These are proposed and will be tuned on real price data before launch.

How to read it

  • D is far beyond X.
  • The CD leg is much longer than BC.
  • Dashed lines show the ratio triangles.

Status labels you may see

LabelWhat it means
Pattern formingPoints X through C match, D has not been reached.
Pattern completeD matches the ratio rule.

What cancels it

A close well beyond D (more than 5% past it).

What traders check next

  • How long the CD leg is compared with BC.
  • What happened at D.
  • Whether other levels agree with D.

Limits

  • The long final leg means large price distances.
  • Tolerance lets many shapes qualify.
  • Rarely tested in research.

Try it in forecastviz

  • Open any ticker and choose Fibonacci and harmonic patterns → Crab pattern in the left menu.
  • Switch between 6M, 1Y, 3Y to see how the picture changes.
  • Compare with Deep Crab pattern and Butterfly pattern on the same chart.

Questions

Why Crab?

The shape looks like claws. It is a name.

How is it different from a Deep Crab?

A Deep Crab has a deeper B at 88.6% of XA.

Related trends

Further reading

  • Boroden, Fibonacci Trading
  • Carney, Harmonic Trading
  • Murphy, Technical Analysis of the Financial Markets

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.