Mastering Bullish & Bearish Crab Patterns - Entry, SL & TPs LevlHarmonic patterns are integral to technical analysis in financial markets, and the Crab pattern is one of the most distinct among them. Both bullish and bearish Crab patterns provide precise trading opportunities by indicating potential reversal points in the market. This article delves into the structure, identification, and trading strategies for both bearish and bullish Crab patterns.
____________________Bullish Crab Pattern_________________________
Structure and Identification:
A Bullish Crab pattern is a reversal pattern that signals a potential bullish reversal at the end of a bearish trend. It consists of five points labeled X, A, B, C, and D, forming distinct Fibonacci retracement and extension levels:
XA: The initial move from X to A.
AB: Retracement from XA, typically 38.2% to 61.8% of XA.
BC: Retracement from AB, typically 38.2% to 88.6% of AB.
CD: Extension of XA, typically reaching 161.8% to 224% of XA, and is the longest leg.
Entry, Stop Loss, and Take Profit Levels:
Entry: Place a buy order at point D, where the CD leg completes the 161.8% to 224% Fibonacci extension of XA.
Stop Loss: Set just below point D to safeguard against potential false breakouts.
Take Profit: Use multiple levels:
TP1: 38.2% retracement of the CD leg.
TP2: 61.8% retracement of the CD leg.
TP3: Point C level.
_____________________Bearish Crab Pattern_________________________
Structure and Identification:
A Bearish Crab pattern signals a potential bearish reversal at the end of a bullish trend. It mirrors the Bullish Crab pattern with the same Fibonacci retracement and extension levels but in reverse:
XA: The initial move from X to A.
AB: Retracement from XA, typically 38.2% to 61.8% of XA.
BC: Retracement from AB, typically 38.2% to 88.6% of AB.
CD: Extension of XA, typically reaching 161.8% to 224% of XA, and is the longest leg.
Entry, Stop Loss, and Take Profit Levels:
Entry: Place a sell order at point D, where the CD leg completes the 161.8% to 224% Fibonacci extension of XA.
Stop Loss: Set just above point D to protect against potential false breakouts.
Take Profit: Use multiple levels:
TP1: 38.2% retracement of the CD leg.
TP2: 61.8% retracement of the CD leg.
TP3: Point C level.
Conclusion:
Crab harmonic patterns, whether bearish or bullish, provide traders with high-probability reversal signals by leveraging precise Fibonacci retracement and extension levels. Correctly identifying these patterns and setting appropriate entry, stop loss, and take profit levels are crucial for capitalizing on their potential. As with all trading strategies, it's essential to complement harmonic pattern analysis with other technical indicators and sound risk management practices to enhance the chances of success.
Crabmarket
BTC Floor Is 32K, Similar crab pattern from Summer 2021.Bitcoin will touch its golden pocket, which is its current strong support zone, 2 more times before March 25th in order to get prepped for Q2s impulse towards a new high.
You can See on the markings that BTC bares a similar pattern to what took place from May 19 2021 through the last bit of July. This Crabish time period showed us that after the first drop to the strong support, the market allowed BTC to touch that same support zone 2 more times within a 60 day period, in which it catapulted into a new rally afterward.
The BTC rally from final support touch at the end of July 2021. created a momentum that until the peak Nov 10th, followed by a decline in which my chart notes the cycle ended around jan 22-24, which turns out to be the new floor for the current crab we are in.
With BTC and crypto having more exposure than ever, It seems ridiculous to follow paths from previous years that never experienced what BTC and alts are doing now. The only relevant year for all crypto to follow would have to have started from this bull run that we are still in. A run that started back in March 2020 from the final drop point of its bearish cycle after the 2017 run. If you see my green trend line, it references back to that march 2020 date, and signifies that we have yet to go under that trend line, let alone test it. Well to keep this cycle true to a bull, we must not break under that trend line, and the March 15th tax hike decision that the fed will make might play a major role in telling us which way the market is gonna go. I personally think the FED will not stop inflation until there is a new POTUS, so expect the decision to not happen at that date, and expect the next impulse of this great crypto we call BTC.
Every Cryptocurrency Follows Bitcoin, because in the crypto galaxy, Bitcoin is the SUN, and the alts must keep orbit around the largest celestial body around.
WHAT HAPPEND WITH ETH? - SM CONCEPT - LIQUIDATED POSITIONSAs you already know, or should definitely know, Ethereum is not in a bull market, nor a bear market but a crab market, that means that it's currently being manipulated and you can only predict its moves applying the rules of the SMC.
Millions of positions got liquidated by the voluntary crash of bitcoin down to 2.3 k.
Ethereum is probably going to crash below 2k and then has to go back up to fill unbalance gaps and negative orders let behind by the manipulation.
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BTC Countdown to CrabtownEach push getting weaker, indicators indicating flagging or down instead of flagging or up... Yea, this is when you consider a short. Could go either way, but I think we cool off back to 31k at least, before we have a shot at returning to bullishness. There are a few stronger support areas now though on the way down. Set stop loss accordingly.
Crab claw coming down, don't get pinched!