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Crab

Best of Both WorldsMy long-term bias on Dollar Appreciation had not ended, however, that doesn't mean I can't short the Bearish Crab Pattern that was completed at 140.42. If you had traded this, it would have given you 106pips(approx. 1,060usd/lot) of running profits. If you are like me, having the bias to long the USDJPY, the Bullish Gartley Pattern that completes at 137.84 could provide you with such a trading opportunity. Either way, the M.C confirmation has to appear in both situations.
Long
by RaynLim
Unveiling the Ultimate Trading Setup of the Week: Don't Miss OutAs some of you may recall, I've been seeking a buying opportunity on the AUDCAD for the past few weeks. My motivation for this is the Bullish 5-0 pattern setup that has formed on the Weekly Chart. I've been exploring various avenues to enter into this buying opportunity, and currently, two options are available. Firstly, we can wait for a candlestick pattern trading setup to appear on the Bullish Gartley Pattern for a buying opportunity (left). Alternatively, a Bullish Deep Gartley Pattern on the 8 range bar chart (bottom right) could provide the trading setup for us to engage the trade.
Long
by RaynLim
How to Use a Crab Pattern for TradingAre you looking to add harmonic patterns to your trading arsenal? You can try the Crab pattern. In this article, we’ll explore the basics of Crab patterns, the key rules and requirements you should be aware of, and learn how to use this versatile tool across all markets. About the Crab Pattern The Crab pattern is a harmonic pattern used in technical analysis to identify potential reversal points in financial assets. While harmonic patterns date back decades to H. M. Gartley’s 1935 book, Profits in the Stock Market, the Crab is a relatively new innovation developed by Scott M. Carney in 2000. The Crab pattern is identified by specific Fibonacci ratios and consists of five distinct swings that are labelled as points X, A, B, C, and D. Point X is the starting position of the pattern, while point D is the potential reversal area. Notably, one of the hallmarks of the Crab is its long CD leg, as you’ll see shortly. Despite being one of the rarer harmonic patterns, many traders successfully apply the Crab to markets, like stocks, commodities, forex, and crypto*, to create high-risk/reward setups. Traders typically use the pattern in combination with other forms of technical analysis, like trendlines, chart patterns, and indicators, to confirm potential reversal points. How to Identify the Crab Pattern When Trading Like other harmonic patterns, the Crab requires that a specific set of rules are met before being considered valid to trade. The essential Crab pattern rules are: - X forms at a high or low. - A is formed at an opposing high or low, i.e., if X is a high, then A is a low, and vice versa. This movement is known as the XA leg. - The price retraces XA between 0.382 and 0.618 to produce B, creating the AB leg. - C retraces 0.382 to 0.886 of the AB leg and generates a BC leg. - D forms at a 1.618 extension of the XA leg, creating the final CD leg, and should ideally be a 2.24 to 3.618 extension of the BC leg. - Traders enter at D. Note that the ratios won’t always line up perfectly, so use your judgement to determine whether the pattern is valid. The ratios are simply guidelines to identify potential Crabs. It’s always best practice to use your discretion and consider other technical factors to decide whether you want to enter a trade based on your observations of the Crab formation. As you dive deeper into the world of harmonic patterns, you might notice that the Crab and Butterfly look very similar. The difference is in their internal retracements and, most importantly, the depth of D. The Butterfly requires that D be a 127% to 161.8% extension of XA, while the Crab will always be a 161.8% extension of XA. Trading the Crab Pattern Now that we understand how to identify Crabs, it’s time to start looking at how traders typically employ the Crab to enter trades. We’ll be using the TickTrader platform to demonstrate how you can use this pattern, and if you’d like to follow along, feel free to use it as well. There’s no need to sign up to FXOpen , and you’ll be able to start honing your Crab identification skills within seconds. You can also open an FXOpen account if you want to practise the Crab in live markets. The Bullish Crab Harmonic Pattern Strategy Let’s briefly cover the exact rules for a bullish Crab pattern in the forex, stock, commodities, and currency markets. They are: - XA Leg: The XA leg comprises a low X and a high A. - AB Leg: B is a bearish move that retraces between 0.382 and 0.618 of XA. - BC Leg: Another high, C, forms, which is a 0.382 to 0.886 retracement of AB. - CD Leg: A sharp move down creates D, which is a 1.618 extension of XA and, ideally, a 2.24 to 3.618 extension of BC. Traders will either set a limit order at a projected point D or wait for the price to show signs of reversal before entering with a market order. It can be tricky to know at which point the Crab becomes invalid if D continues past the 1.618 mark, so you may try setting a hard limit, like 1.7, at which point you consider it untradeable. Stop losses are typically placed just below D. Traders often use a set number of pips or a volatility-based indicator, like Average True Range or Bollinger Bands, to find an appropriate point. Alternatively, you could try using a set limit that would invalidate the entire pattern for your stop loss. Profit targets depend on how conservative your trading style is. Some traders prefer to begin banking profits once A is reached, while others start taking partials at B. For longer-term targets, a 1.618 extension of A and D is also commonly utilised. The Bearish Crab Harmonic Pattern Strategy The principles for a bearish Crab pattern are primarily the same, just flipped. As such: - XA Leg: The XA leg features a high X and low A. - AB Leg: A bullish move creates B, retracing 0.382 and 0.618 of XA. - BC Leg: The price falls to produce C, a 0.382 to 0.886 retracement of AB. - CD Leg: A spike upward generates D, which extends XA by 1.618 and should extend BC by 2.24 to 3.618. Similarly, traders enter at D, either with a limit order prior to the point forming or with a market order once bearish price action confirms the formation. Stop losses are usually placed just above D, although it’s up to you how you choose to determine the precise point. Just be wary of using a stop loss that’s too wide. Likewise, traders often begin taking profits at A or B, with the 1.618 extension of A and D offering a suitable target beyond the range of the pattern. What to Do Next All that’s left to do is to keep practising and training your eyes to recognise potential Crab patterns. You can follow these steps if you want to improve your ability to spot Crab formations while forex trading, and start incorporating them into your strategy: 1. Practise identifying Crabs on historical charts. 2. Try using software that automatically identifies and labels Crab patterns for you, so you can focus on analysing their formation. 3. Open an FXOpen account and try trading the patterns as you see them occurring. 4. Experiment with indicators and other forms of technical analysis to create a viable strategy. At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
📈BTC analysis near release of CPI data📉BINANCE:BTCUSDT COINBASE:BTCUSD Hey everyone, first take a look at my previous BTCUSDT & ETHUSDT analysis and positions. Bitcoin may experience growth near this month's CPI data release event if inflation conditions improve. The trend is still bearish and the price takes another step for further correction with each rise Don't forget to risk-free your position. Please share ideas and leave a comment let me know what's your idea. CrazyS✌
Short
by CrazyS
2
SPX Swing Trade, History repeating (CPI incoming)The chart is self-explanatory, I have highlighted in the chart where we saw remarkably similar price action in the past. I have identified two different structures in the chart, a parallel channel, and a disjoint channel. We are currently trading in the disjoint channel. A disjoint channel has expanding edges which have same slopes locked in opposite directions. We entered the Current Disjoint channel from a parallel channel trending upwards which is exactly what happened in the past, the only difference is size of these channels, in past we had larger Parallel and disjoint channel compared to what we have now. The small size of channels this time indicates reduced volatility overall, which if it happens at the end of an uptrend, means we are topping out. Let's make some predictions based on this. If we look at the current price action, it is forming a bull flag (highlighted in the chart) , I have also highlighted the measured move of the flag. If the flag plays out its measured move intersects directly into the top of the disjoint channel as well as the August high. Which I believe should be the top or close to it. In case bull flag fails , and we first drop a bit then we can look at that the blue line, it is placed for 10th May CPI Day and if we move up on that day, we are still intersecting close to the August High and top of the disjoint channel. Apart from the above structures we also have a harmonic structure with its PRZ falling right onto Aug high. If you like my content then please boost and share this post. I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned. If you would like to learn from my experience then follow me on trading view to get notified on my trade, market projections and several upcoming technical analysis and in-depth tutorials on technical Indicators. You can also leave a comment and let me know if you want me to look at any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it. Keep learning and Happy trading All.
OANDA:SPX500USDShort
by zakoraio
2
GBPUSD The Pullback Here it is, after a long couple of weeks, GBPUSD has finally gone bearish. This is a long shot, but this particular area could serve as the next potential reversal point. Along the way there could be some setups that can support price using this area to rally up, at least to the LQP. The 38.2 take profit is near the LQP so there's some level of interest in case price doesn't have the momentum to continue rallying up. However, this D point could also be the orchestra to start a new trend, resume the bullish trend. On the daily, we have a Wyckoff Distribution lingering, maybe this could fuel the 4th hit to be higher?
Short
by BeaucoupPips
Multiple Buying OpportunityUpon analysis, there are multiple factors that indicate a potential buying opportunity for AUDCAD. Firstly, the bullish 5-0 pattern on the Weekly chart was identified and discussed in my previous report. Secondly, various trading strategies have also pointed towards a buying opportunity. For example, the 4-hourly chart shows a tested support level at 0.8954, which has been tested three times. If this support level is broken, there is a complete AB=CD Harmonic Pattern at 0.8940. On the 1-hourly chart, a bullish deep crab pattern is observed with a retest at 0.8952, providing an opportunity for traders. The only factor that could deter this trade is a potential market gap when the market opens on Monday. Nonetheless, with the aforementioned indicators in place, a potential buying opportunity for AUDCAD presents itself.
Long
by RaynLim