Harmonic Patterns Detection
TRN's Harmonic Patterns Suite identifies 7 Fibonacci-based patterns with precision. Our algorithm scans for these complex formations across multiple timeframes, providing real-time alerts and statistical success rates.
Key Components​
- XA Leg: The initial price move.
- AB Leg: A retracement of the XA leg, typically 61.8%.
- BC Leg: A retracement of the AB leg, typically 38.2% or 88.6%.
- CD Leg: An extension of the BC leg, typically 127.2% or 161.8%.
Trading Implications​
The Gartley pattern signals a potential reversal at point D. Traders often enter a trade at this point, with a stop-loss just beyond it. The target is usually set at the 38.2% or 61.8% retracement of the CD leg.
Butterfly Pattern​
Pattern Formation​
The Butterfly pattern is similar to the Gartley but has a more extended CD leg. It also forms an "M" or "W" shape and is identified using specific Fibonacci levels.
Key Components​
- XA Leg: The initial price move.
- AB Leg: A retracement of the XA leg, typically 78.6%.
- BC Leg: A retracement of the AB leg, typically 38.2% or 88.6%.
- CD Leg: An extension of the BC leg, typically 161.8% or 224%.
Trading Implications​
The Butterfly pattern signals a potential reversal at point D. Traders often enter a trade at this point, with a stop-loss just beyond it. The target is usually set at the 38.2% or 61.8% retracement of the CD leg.
Bat Pattern​
Pattern Formation​
The Bat pattern is a variation of the Gartley pattern with a more precise Fibonacci retracement level for the AB leg. It also forms an "M" or "W" shape.
Key Components​
- XA Leg: The initial price move.
- AB Leg: A retracement of the XA leg, typically 38.2% or 50%.
- BC Leg: A retracement of the AB leg, typically 38.2% or 88.6%.
- CD Leg: An extension of the BC leg, typically 161.8% or 261.8%.
Trading Implications​
The Bat pattern signals a potential reversal at point D. Traders often enter a trade at this point, with a stop-loss just beyond it. The target is usually set at the 38.2% or 61.8% retracement of the CD leg.
5-0 Pattern​
Pattern Formation​
The 5-0 pattern is a newer harmonic pattern that consists of five price swings. It is identified using specific Fibonacci retracement and extension levels.
Key Components​
- XA Leg: The initial price move.
- AB Leg: A retracement of the XA leg, typically 113% or 161.8%.
- BC Leg: A retracement of the AB leg, typically 161.8% or 224%.
- CD Leg: An extension of the BC leg, typically 161.8% or 261.8%.
- DE Leg: An extension of the CD leg, typically 127.2% or 161.8%.
Trading Implications​
The 5-0 pattern signals a potential reversal at point E. Traders often enter a trade at this point, with a stop-loss just beyond it. The target is usually set at the 38.2% or 61.8% retracement of the DE leg.
Crab Pattern​
Pattern Formation​
The Crab pattern is known for its extreme precision and is identified using specific Fibonacci retracement and extension levels. It consists of four price swings.
Key Components​
- XA Leg: The initial price move.
- AB Leg: A retracement of the XA leg, typically 38.2% or 61.8%.
- BC Leg: A retracement of the AB leg, typically 38.2% or 88.6%.
- CD Leg: An extension of the BC leg, typically 261.8% or 361.8%.
Trading Implications​
The Crab pattern signals a potential reversal at point D. Traders often enter a trade at this point, with a stop-loss just beyond it. The target is usually set at the 38.2% or 61.8% retracement of the CD leg.
Cypher Pattern​
Pattern Formation​
The Cypher pattern is a newer harmonic pattern that consists of four price swings. It is identified using specific Fibonacci retracement and extension levels.
Key Components​
- XA Leg: The initial price move.
- AB Leg: A retracement of the XA leg, typically 38.2% or 61.8%.
- BC Leg: A retracement of the AB leg, typically 113% or 141.4%.
- CD Leg: An extension of the BC leg, typically 78.6% or 127.2%.
Trading Implications​
The Cypher pattern signals a potential reversal at point D. Traders often enter a trade at this point, with a stop-loss just beyond it. The target is usually set at the 38.2% or 61.8% retracement of the CD leg.
Shark Pattern​
Pattern Formation​
The Shark pattern is a newer harmonic pattern that consists of four price swings. It is identified using specific Fibonacci retracement and extension levels.
Key Components​
- XA Leg: The initial price move.
- AB Leg: A retracement of the XA leg, typically 113% or 161.8%.
- BC Leg: A retracement of the AB leg, typically 161.8% or 224%.
- CD Leg: An extension of the BC leg, typically 161.8% or 261.8%.
Trading Implications​
The Shark pattern signals a potential reversal at point D. Traders often enter a trade at this point, with a stop-loss just beyond it. The target is usually set at the 38.2% or 61.8% retracement of the CD leg.