Aiming for the trader's success by creating awareness of the 3M's: Mind, Money & Method by 
Hi,
We finally found a “Crab” harmonic pattern and I am attaching the chart image with the specific parameters.
There are couples of points here, which are worth mentioning along with the analysis of the pattern.
One, this pattern has formed on a smaller time frame of 15mins, which goes to show that the harmonic patterns are valid & effective across all time frames.
Secondly, with reference to a previous comment - “should one use additional tools like the stochastic/MACD for additional confirmation” – I would say that the answer lies within the question -J
“Additional confirmation”.
As long as you use the indicators as a secondary confirmation & not as a leading factor, then yes, they certainly help in confirming the price movements.
Like the example we have here – the reversal point “D” of the Crab pattern also had a bullish divergence, which is the additional confirmation.
But again, one must remember that price is the leading indicator & we have seen the effectiveness of price reacting at the fib levels.
As far as this setup goes, price bounced exactly at the 88.6 level & it seems to be rallying towards the expected targets.
I don’t like to be predictive and judge the extent of the price movement. But harmonic patterns are very effective & even though one can expect price to fulfill the expected targets, one should go in a trade with a proper trade plan.
Remember, now you have an edge & you must take advantage of that.
Sunil Mangwani.
Hi Sunil,
I am not too sure about which pattern is forming the USDCHF in its daily chart, but is acting quite harmonically.
If you take as X the high of 13/02, and pay attention at the following 2 reversals, we see that the price stopped almost exactly in Fibonacci levels.
If we take that high (13/02) we already have the X, A, B & C of a pattern. I guess the C level confluences with the crab’s 15 min chart you have posted
I’m going to follow this chart to see witch will be the pattern.
See you,
Carlos
Hi Carlos,
There are 2 points here which need to be issued. One is that price does respect fib levels and we will get a lot of support/resistance levels at the fib ratios. But the levels which form at precise fib ratios are more accurate. Secondly, if we have a confirmation of another setup coinciding with the fib levels, then it adds more weight to the pattern. Your points of the harmonic pattern are not wrong, but one could identify some other points as well. This is where personal discretion comes in & one has to decide which points would be more effective. I have put up a post (A long term harmonic pattern) which describe this clearly.
Sunil Mangwani