The cTrader Harmonic Crab Pattern is very similar to the Butterfly pattern because it is also a reversal pattern composed of four legs marked X-A, A-B, B-C and C-D which is a reversal pattern that allows you to enter the market at extreme lows or highs. As you can see from the trade setup on the chart below the Crab Pattern was formed at Point D and the price reversed bullish up to the golden ratio of 61.8% which would be the major take profit target.
The Fibonacci retracement and ratios are at the core of harmonic trading, so make sure the Crab Pattern Trading Rules are satisfied before you trade the Crab harmonic pattern.
The chart above shows a Bullish Cypher pattern created by the Harmonic Pattern Scanning Software that formed at Point D on the 22.10.2019 used together with the Fibonacci Retracement Tool indicator and you can see where the price retraced from the lower inner channel to the upper inner channel. This simple trade setup can be used on all symbols.
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