Crab Harmonic Pattern [TradingFinder] Harmonic Chart patterns🔵 Introduction
The Crab pattern is recognized as a reversal pattern in technical analysis, utilizing Fibonacci numbers and percentages for chart analysis. This pattern can predict suitable price reversal areas on charts using Fibonacci ratios.
The structure of the Crab pattern can manifest in both bullish and bearish forms on the chart. By analyzing this structure, traders can identify points where the price direction changes, which are essential for making informed trading decisions.
The pattern's structure is visually represented on charts as shown below. To gain a deeper understanding of the Crab pattern's functionality, it is beneficial to become familiar with its various harmonic forms.
🟣 Types of Crab Patterns
The Crab pattern is categorized into two types based on its structure: bullish and bearish. The bullish Crab is denoted by the letter M, while the bearish Crab is indicated by the letter W in technical analysis.
Typically, a bullish Crab pattern signals a potential price increase, whereas a bearish Crab pattern suggests a potential price decrease on the chart.
The direction of price movement depends significantly on the price's position within the chart. By identifying whether the pattern is bullish or bearish, traders can determine the likely direction of the price reversal.
Bullish Crab :
Bearish Crab :
🔵 How to Use
When trading using the Crab pattern, crucial parameters include the end time of the correction and the point at which the chart reaches its peak. Generally, the best time to buy is when the chart nears the end of its correction, and the best time to sell is when it approaches the peak price.
As we discussed, the end of the price correction and the time to reach the peak are measured using Fibonacci ratios. By analyzing these levels, traders can estimate the end of the correction in the chart waves and select a buying position for their stock or asset upon reaching that ratio.
🟣 Bullish Crab Pattern
In this pattern, the stock price is expected to rise at the pattern's completion, transitioning into an upward trend. The bullish Crab pattern usually begins with an upward trend, followed by a price correction, after which the stock resumes its upward movement.
If a deeper correction occurs, the price will change direction at some point on the chart and rise again towards its target price. Price corrections play a critical role in this pattern, as it aims to identify entry and exit points using Fibonacci ratios, allowing traders to make purchases at the end of the corrections.
When the price movement lines are connected on the chart, the bullish Crab pattern resembles the letter M.
🟣 Bearish Crab Pattern
In this pattern, the stock price is expected to decline at the pattern's completion, leading to a strong downward trend. The bearish Crab pattern typically starts with a price correction in a downward trend and, after several fluctuations, reaches a peak where the direction changes downward, resulting in a significant price drop.
This pattern uses Fibonacci ratios to identify points where the price movement is likely to change direction, enabling traders to exit their positions at the chart's peak. When the price movement lines are connected on the chart, the bearish Crab pattern resembles the letter W.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
Crabpatterns
Auto Harmonic Pattern Projections (MTF)Hello traders, I am excited to introduce to you the Auto Harmonic Pattern Projections indicator!
How does it work?
This indicator identifies harmonic patterns by analyzing Zigzag pivot points on the chart and checking if the XABC points form the required Fibonacci retracements/extensions for each particular pattern type.
If the values are within their acceptable ranges after the C point is formed, then the indicator automatically projects the D point which is based on the required XA retracement/extension of that pattern and verifies it is also within the acceptable BC projection range.
Features:
Automatically identifies and draws potential harmonic patterns in real time as soon as price breaks the B point of the pattern.
- This early projection of a harmonic pattern gives you more time to analyze the chart before the price reaches the pattern’s completion point (D), to help you determine the probability of that pattern succeeding or failing.
Multi-time frame (MTF) functionality lets you modify the Zigzag time frame to display patterns across multiple time frames without needing to change the chart time frame.
Alerts can be added for each type of pattern which will trigger upon price breaking the B point.
Individually select which types of harmonic patterns you would like displayed on the chart.
Customizable options for each pattern (see below)
List of supported harmonic patterns:
Bat Pattern
Alt Bat Pattern
Crab Pattern
Deep Crab Pattern
Butterfly Pattern
Gartley Pattern
Shark Pattern
More will be added in the future! Check for updates below
Pattern options:
Manually change the allowable ranges for each leg of the pattern, with tooltips for each pattern that provides users with the rules and criteria.
Adjust stop loss level for each pattern.
Change the color of the pattern’s lines, fills, and labels.
Display the BC Projection level which is automatically determined based on the Fibonacci extension closest to the projected D point.
Display the AB=CD level, 1.272AB=CD Extension, and/or 1.618 AB=CD Extension.
Display the Stop Loss Level and Take Profit Levels
Example of a Butterfly Harmonic found, with the 1.272AB=CD level enabled
Preview of the indicator’s settings:
How to Set Up Alerts
Select which patterns you would like to receive alerts on, by checking them off in indicator settings.
Once you have made selections, click OK then save your chart.
Right click on a harmonic pattern on the chart or click the ellipsis (3 dots) next to indicator name at top of chart then click “Add alert on MTF Auto Harmonic Pattern Projection”
You may remove the default Alert Name if you’d like, as the alert message is already built in which informs user of the type of pattern found on a particular symbol.
If you change any settings after alert has been created, you will have to remove the existing alert then re-add it following the steps above.
To gain access to this indicator, please send me a direct message for details
