Forex Trading Advanced Level Course
    About Lesson

    The Crab

    Scott Carney, a firm believer in harmonic price patterns, discovered the “Crab. “ According to him, this is the most accurate among all the harmonic patterns because of how extreme the Potential Reversal Zone (sometimes called “price better reverse or imma gonna lose my shirt” point) from move XA. This pattern has a high reward-to-risk ratio because you can put a very tight stop loss. The “perfect” crab pattern must have the following aspects:

    Move AB should be the .382 or .618 retracement of move XA. Move BC can be either a .382 or .886 retracement of move AB. If the retracement of move BC is .382 of move AB, then CD should be 2.24 of move BC. Consquently, if move BC is .886 of move AB, CD should be a 3.618 extension of move BC. The CD should be a 1.618 extension of move XA.

    The Crab

    Scott Carney founded another Harmonic Price Pattern called the “Bat.”

    The .886 retracement of move XA defines the Bat as a Potential Reversal Zone. The Bat pattern has the following qualities:
    Move AB should be the .382 or .500 retracement of move XA.
    Move BC can be either a .382 or .886 retracement of move AB.
    If the retracement of move BC is .382 of move AB, then CD should be a 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, CD should be a 2.618 extension of move BC.
    The CD should be .886 retracement of move XA.