The Harmonic Crab chart pattern is an advanced technical analysis tool within the Harmonic Trading methodology. This pattern helps traders predict potential price reversals using Fibonacci retracement and extension ratios. The Crab pattern consists of five key points: X, A, B, C, and D, which form a distinct structure when connected. Its extreme extension at point D characterizes it, often reaching 161.8% or beyond of the XA leg.

The pattern begins with an initial price movement from point X to A, followed by a retracement from A to B, typically 38.2% to 61.8% of XA. The BC leg then moves against AB, retracing 38.2% to 88.6%. The final leg, CD, extends dramatically to reach the defining 161.8% extension of XA, making the Crab pattern unique among harmonic patterns.

Point D is the potential reversal zone (PRZ), where traders anticipate a price turnaround. A trade is typically entered at D with stop-loss orders placed beyond this zone. While powerful, the Crab pattern requires precise measurement and validation of Fibonacci levels, making it suitable for skilled traders. It is commonly used in forex, stocks, and commodities trading to identify high-probability reversal zones and improve trade timing.