## 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

- Bearish Bat harmonic pattern
- 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

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

## Bullish Bat harmonic pattern

- In the bullish bat harmonic pattern, AB leg can retrace 38.2% to 50% of XA leg
- In the bullish bat harmonic pattern, BC leg can retrace 38.2% to 88.6% of AB leg
- In the bullish bat harmonic pattern, CD leg can retrace 88.6% of XA leg
- The starting point of CD is 1.6% to 2.6% of A point
- Buy the stock with stop loss X from D point
- The first target for this Pattern is 61% from D point
- The second target for this Pattern is 1.2 % from C leg
- 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

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

## Bullish Butterfly harmonic pattern Identification

- Bullish butterfly harmonic pattern starts when stock is in the bear phase
- X is the point where the pattern starts
- In the bearish bat harmonic pattern, AB leg can retrace 78.6% of XA
- BC leg can retrace 38.6 or 88.6% of AB
- CD can retrace 161.8% of BC
- Buy the stock when it reaches the D point
- Place the stop loss after calculating the volatility of the stock
- The first target for this pattern is point C
- The Second target for this pattern is the point A
- 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

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

## Bullish Crab harmonic pattern

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

## Bullish Gartley pattern

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

## Bearish Gartley harmonic pattern

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

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