Hi D Bista & Su25,
With reference to your comments on the “textbook Gartley”, I thought it would be a good opportunity to classify the different harmonic patterns….the way I see them.
Now, I have not come across this kind of classification anywhere & I could be wrong in my conclusions.
But over the number of years that I have been studying the fibs & harmonics, I have observed these subtle differences.

The best way to look at a harmonic pattern is to classify it as -
An impulsive wave (X to A) followed by two corrective waves (A to B and C to D) which ultimately gives rise to a larger impulsive wave (the price targets)

The main points that I follow are -

• The retracement of X-A to point B usually identifies the kind of harmonic pattern that should ultimately form.

• Point C is generally the weak link in the pattern. The retracement of A-B to point C could form at any fib ratio, right from 0.382 to 0.886.

• Point D is the ultimate confirmation point of a harmonic pattern. ‘D’ will always form at a confluence of 2 fib levels (depending on the type of pattern) and these fib levels are very accurate. The 2 fib ratios (the Retracement of X-A AND the Projection of B-C) form precisely at the expected levels.

Let’s have a look at the specifics of the retracement ‘B’ (of the move from X to A) –

• If ‘B’ is a shallow correction, and retraces to 38.2, then ‘D’ should form at 0.886 of X-A. – The Bat pattern

• If ‘B’ is a normal correction, and retraces 50.0 to 61.8, then ‘D’ should form at 0.786 of X-A. – The Gartley pattern

• If ‘B’ is a deep correction, and retraces 78.6, then ‘D’ should form at 1.272 of X-A. – The extended Butterfly pattern.

You will notice that the location of ‘D’ is based on the fib ratios of X-A, and the fib ratios of B-C have not been taken into consideration.
This is because I have observed that the B-C projections may vary from one fib level to another, but the fib ratios of X-A always form at the precise levels.

Another point is that I have not specified the other extended harmonic pattern of the “Crab”.
Very frankly, I have not been able to identify this pattern correctly while trading & I am still struggling to get the correct identification points for it.
The day I get it, you will be the first to know -J

Finally, some amount of discretion is required, since price will never behave exactly the way we expect. But this classification has given me an edge for the anticipated price moves & I hope it does the same for you.

I have attached an image showing the different types of the harmonic patterns for reference.
But again, from my experience, I have seen that it the Gartley & the Butterfly which occur more often & I would concentrate on these 2 more.

Sunil Mangwani.