Community Forex Questions
What is a Crab pattern?
Crab patterns are popular trading patterns. The four-legged reversal pattern allows dealers to enter the market at both low and high prices. The best time to trade a crab pattern is just before it reaches its Fibonacci level. By doing so, you can enter the market when it is low or when it is high. Harmonic patterns are the most popular patterns for trading.
The Crab pattern is a harmonic chart pattern used in technical analysis to identify potential reversal points in the market. It was introduced by Scott Carney in 2000 and is known for its deep retracement and precise structure. The Crab pattern is characterized by five key points: X, A, B, C, and D. The critical point D is formed when the price reaches a 161.8% Fibonacci extension of the XA leg, making it a potential reversal zone.
The pattern is known for its accuracy and aggressive movement once it completes. Traders often use the Crab pattern to enter trades at point D, expecting a strong reversal. It's typically seen in both bullish and bearish forms, signaling significant trend reversals when identified correctly.
The pattern is known for its accuracy and aggressive movement once it completes. Traders often use the Crab pattern to enter trades at point D, expecting a strong reversal. It's typically seen in both bullish and bearish forms, signaling significant trend reversals when identified correctly.
Apr 01, 2022 00:35