The one and only Crab Pattern: Our Favorite Harmonic Pattern

What is a Crab Pattern?

The Crab pattern is one of the most accurate and aggressive harmonic patterns in technical analysis. Developed by Scott Carney in 2000, it’s known for its extended leg formations and powerful price reversals at extreme Fibonacci extensions—ideal for experienced traders looking for high-reward setups.

🦀 What is the Crab Pattern?

The Crab pattern is a five-point structure labeled X-A-B-C-D. Unlike retracement patterns (e.g., Gartley or Bat), the Crab relies on Fibonacci extensions, especially the defining 161.8% XA projection at point D.

Fibonacci Ratios of the Crab Pattern

  • AB = 38.2% to 61.8% retracement of XA
  • BC = 38.2% to 88.6% retracement of AB
  • CD = 224% to 361.8% extension of BC
  • D = 161.8% extension of XA

🐂 Bullish vs. 🐻 Bearish Crab Pattern

Bullish Crab: Forms during a downward trend and signals a likely reversal upward from point D.
Bearish Crab: Forms in an uptrend, where traders look for a reversal downward once price reaches the extended D point.

How to Trade the Crab Pattern

  1. Identify XABCD Structure: Confirm that XA, AB, BC, and CD legs align with their required Fibonacci measurements.
  2. Mark the PRZ: D must project 161.8% of XA and between 224–361.8% of BC.
  3. Look for Entry Signals: Rejection candles at D, RSI/MACD divergence, momentum exhaustion.
  4. Set Your Trade:
    • Entry: At or near point D
    • Stop-Loss: Just beyond D (above for bearish, below for bullish)
    • Take-Profit: 38.2% and 61.8% of CD, or B point

Example Setup

A bullish Crab might appear as:

  • XA: strong decline
  • AB: retracement upward (around 50%)
  • BC: downward continuation
  • CD: sharp sell-off, extending 161.8% of XA and 224%+ of BC
  • Entry at D = sharp reversal back upward

Pro Tips

  • Be patient: Crabs take time to form and often test psychological extremes.
  • Watch volume spikes: Reversals at point D are often accompanied by high-volume flushes.
  • Pair with structure: Combine PRZs with horizontal support or pivot zones.

Why the Crab Works

The Crab works because it captures liquidity zones and algorithmic exhaustion points. These extreme Fibonacci extensions often align with institutional activity.

Final Thoughts

The Crab harmonic pattern is a potent setup for skilled traders. With its deep extensions and sharp reversals, it provides one of the best risk-reward scenarios in harmonic trading. Explore more insights on GartleyHub.com.