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# The Crab Pattern in Harmonic Trading

AnalyticsTrade Team Last updated on 7 May 2023

## What is the Crab Pattern in Harmonic Trading?

The Crab pattern is a harmonic trading pattern that was discovered by Scott Carney in 2001. It is a complex pattern that requires a trader to identify specific Fibonacci ratios in order to accurately identify the pattern. The Crab pattern is a three-leg reversal pattern that is used to identify potential reversals in the market. It is considered to be one of the most reliable harmonic patterns and is often used by experienced traders.

## Rules of the Crab Pattern

The Crab pattern is a three-leg reversal pattern that is identified by specific Fibonacci ratios. The pattern consists of three legs, labeled X, A, and B. The X leg is the first leg of the pattern and is the longest. The A leg is the second leg and is shorter than the X leg. The B leg is the third and final leg of the pattern and is the shortest of the three.The Fibonacci ratios that are used to identify the pattern are as follows:â€¢ The X leg should be a 0.618 Fibonacci retracement of the A leg.â€¢ The B leg should be a 0.382 Fibonacci retracement of the A leg.â€¢ The B leg should be a 1.618 Fibonacci extension of the X leg.

Once the pattern is identified, the trader can use it to enter a trade. The entry point is typically at the completion of the B leg. The stop loss should be placed just below the X leg, and the take profit should be placed at the 1.618 Fibonacci extension of the X leg.The Crab pattern can be used in any market and on any time frame. It is important to note that the pattern is not always reliable, and it is important to use other forms of analysis to confirm the pattern.

### Personal Opinion

I have found the Crab pattern to be a reliable and useful tool in my trading strategy. I use it to identify potential reversals in the market and to enter trades with a good risk-reward ratio. I have found that the pattern is most reliable when used in conjunction with other forms of technical analysis.

#### What is the Crab pattern?

The Crab pattern is a harmonic trading pattern that was discovered by Scott Carney in 2001. It is a complex pattern that requires a trader to identify specific Fibonacci ratios in order to accurately identify the pattern. The Crab pattern is a three-leg reversal pattern that is used to identify potential reversals in the market.

#### What are the rules of the Crab pattern?

The Crab pattern is a three-leg reversal pattern that is identified by specific Fibonacci ratios. The pattern consists of three legs, labeled X, A, and B. The X leg is the first leg of the pattern and is the longest. The A leg is the second leg and is shorter than the X leg. The B leg is the third and final leg of the pattern and is the shortest of the three. The Fibonacci ratios that are used to identify the pattern are as follows: The X leg should be a 0.618 Fibonacci retracement of the A leg, the B leg should be a 0.382 Fibonacci retracement of the A leg, and the B leg should be a 1.618 Fibonacci extension of the X leg.

#### How can the Crab pattern be used in a trading strategy?

Once the pattern is identified, the trader can use it to enter a trade. The entry point is typically at the completion of the B leg. The stop loss should be placed just below the X leg, and the take profit should be placed at the 1.618 Fibonacci extension of the X leg. The Crab pattern can be used in any market and on any time frame. It is important to note that the pattern is not always reliable, and it is important to use other forms of analysis to confirm the pattern.

### Summary

The Crab pattern is a harmonic trading pattern that was discovered by Scott Carney in 2001. It is a complex pattern that requires a trader to identify specific Fibonacci ratios in order to accurately identify the pattern. The Crab pattern is a three-leg reversal pattern that is used to identify potential reversals in the market. Once the pattern is identified, the trader can use it to enter a trade. The entry point is typically at the completion of the B leg. The stop loss should be placed just below the X leg, and the take profit should be placed at the 1.618 Fibonacci extension of the X leg. The Crab pattern can be used in any market and on any time frame. It is important to note that the pattern is not always reliable, and it is important to use other forms of analysis to confirm the pattern. The Crab pattern is a powerful tool that can be used to identify potential reversals in the market and to enter trades with a good risk-reward ratio.