Harmonic pattern cheat sheet for retail investors

Harmonic pattern cheat sheet for retail investors





There are 8 different types of harmonic patterns. The harmonic pattern is derived from the mathematics and Fibonacci number. These harmonic patterns help us to identify the reversal point in the market.

The first type of harmonic patters

  1. Bearish Bat harmonic pattern
  2. Bullish Bat harmonic pattern
Bat harmonic pattern works with 5 paints as shown in a figure these are X-A-B-C-D
To identify the Harmonic bat pattern check whether these parameters are followed or not by the chart.
Bearish Bat harmonic pattern

Bearish Bat harmonic pattern

  1. In the bearish bat harmonic pattern, AB leg can retrace 38.2% to 50% of XA leg
  2. In the bearish bat harmonic pattern, BC leg can retrace 38.2% to 88.6% of AB leg
  3. In the bearish bat harmonic pattern, CD leg can retrace 88.6% of XA leg
  4. The starting point of CD is 1.6% to 2.6% of AB leg
  5. Short the stock with stop loss  X from D point
  6. The first target for this Pattern is 61% from D leg 
  7. The second  target for this Pattern is 1.2 % from C leg 
  8. The third target for this Pattern is the level of point A 

Bullish Bat harmonic pattern

Bullish Bat harmonic pattern

    1. In the bullish bat harmonic pattern, AB leg can retrace 38.2% to 50% of XA leg
    2. In the bullish bat harmonic pattern, BC leg can retrace 38.2% to 88.6% of AB leg
    3. In the bullish bat harmonic pattern, CD leg can retrace 88.6% of XA leg
    4. The starting point of CD is 1.6% to 2.6% of A point
    5. Buy the stock with stop loss  X from D point
    6. The first target for this Pattern is 61% from D point
    7. The second  target for this Pattern is 1.2 % from C leg 
    8. The third target for this Pattern is  127% of the point D

    Bearish Butterfly harmonic pattern

    Bearish butterfly Harmonic patterns work on 5 points these are critical and important points in bearish harmonic pattern these points are X-A-B-C-D all these points are interconnected to each other and depended to each other to form this pattern



    Bearish Butterfly harmonic pattern Identification

    1. Bearish butterfly pattern starts when stock is in bull phase 
    2. X is the point where the pattern starts 
    3. In the bearish bat harmonic pattern, AB leg can retrace 78.6% of XA
    4. BC leg can retrace 38.2% of AB
    5. CD can retrace 161.8% of BC
    6. Short sell the stock when it reaches the D point
    7. The first target for this pattern is point B
    8. The Second target for this pattern is the point C
    9. The final target for this pattern is 161.8% from Point D

    Bullish Butterfly harmonic pattern Identification

    1. Bullish butterfly harmonic pattern starts when stock is in the bear phase
    2. X is the point where the pattern starts 
    3. In the bearish bat harmonic pattern, AB leg can retrace 78.6% of XA
    4. BC leg can retrace 38.6 or 88.6% of AB
    5. CD can retrace 161.8% of BC
    6. Buy the stock when it reaches the D point
    7. Place the stop loss after calculating the volatility of the stock
    8. The first target for this pattern is point C
    9. The Second target for this pattern is the point A
    10. The final target for this pattern is 161.8% from Point D

    Crab Harmonic Pattern

    A crab harmonic pattern is used in the high volatile stocks. This pattern is derived from bat and butterfly harmonic patterns. This pattern also consists of 5 points but the length of that leg is different. A crab harmonic pattern is released in 2001.

    Bearish Crab Harmonic pattern

    1. Bearish Crab pattern starts when stock is in bull phase 
    2. X is the point where the pattern starts 
    3. In the bearish Crab harmonic pattern, AB leg can retrace 38.2%-61.8% of XA
    4. BC leg can retrace 38.2%-88.6% of AB
    5. CD can retrace 261.8% -361.8% of BC
    6. Short sell the stock when it reaches the D point
    7. The first target for this pattern is point B
    8. The Second target for this pattern is the point C
    9. The final target for this pattern is 38.2 from Point A

    Bullish Crab harmonic pattern 


    1.  Bullish Crab pattern starts when stock is in bear phase 
    2. X is the point where the pattern starts 
    3. In the bearish Crab harmonic pattern, AB leg can retrace 38.2%-61.8% of XA
    4. BC leg can retrace 38.2%-88.6% of AB
    5. CD can retrace 261.8% -361.8% of BC or 161.8% of XA
    6. Short sell the stock when it reaches the D point
    7. The first target for this pattern is point B
    8. The Second target for this pattern is the point C
    9. The final target for this pattern is 38 from Point A

    Bullish Gartley pattern



    Bullish Gartley harmonic pattern


    1. The bullish Gartley pattern starts when stock is in the bear phase 
    2. X is the point where the pattern starts 
    3. To validate this pattern AB must =CD otherwise this will not work
    4. AB leg can retrace 61.8% of XA
    5. BC can retrace 88.6% of AB
    6. CD can retrace 116% of BC
    7. Buy the stock when it reaches the D point
    8. The first target for this pattern is point B
    9. The Second target for this pattern is the point C
    10. The final target for this pattern is 161.8% from Point C

    Bearish Gartley harmonic pattern


    Bearish Gartley harmonic pattern


    1. Bearish Gartley pattern starts when stock is in bull phase 
    2. X is the point where the pattern starts 
    3. To validate this pattern AB=CD this equation should be followed 
    4. AB leg can retrace up to 38.2 % of XA
    5. BC can retrace 88.6% of AB
    6. CD can retrace 116% of BC
    7. Sell the stock when it reaches the D point
    8. The first target for this pattern is point B
    9. The Second target for this pattern is the point C
    10. The final target for this pattern is 161.8% from Point C
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