Category: Harmonic Patterns

What is the Butterfly pattern? The butterfly pattern is a reversal chart pattern that is in the category of harmonic patterns. It shows price consolidation and is mostly noticed at the end of an extended price move. Traders can apply the butterfly pattern to determine the end of a trending move and position for the start of…

What is the Cypher pattern? The cypher pattern is an advanced harmonic pattern that, when traded correctly, can have a truly outstanding strike-rate as well as a pretty good average reward-to-risk ratio. The cypher is a five-point pattern, composed of points XABCD. It is easy to spot on a chart due to its characteristic wave-like look,…

What is are the Crab & Deep Crab patterns? The deep crab is another form of the crab pattern. It is formed by combining a bat pattern and crab pattern. The Crab harmonic pattern The pattern follows some specific features The pattern was discovered in 2001. Just as it is with other harmonic patterns, this pattern is…

What is the Gartley pattern? The Gartley pattern is the most commonly used harmonic pattern that is based on Fibonacci numbers and ratios. This pattern offers assistance to traders in identifying reaction highs and lows. H.M. Gartley laid down the foundation for harmonic chart patterns in 1932 in his book ‘Profits in the Stock Market’.  A harmonic pattern operates on…

What is the AB=CD trading pattern? after being discovered originally by H. M. Gartley, the AB=CD trading pattern has become very effective as a trading technique for technical traders. This trading pattern helps you to identify when the price is about to change direction. The idea is that you can purchase when the price is low and…

Depending on the pattern (each pattern can tell a different story), they can be a hint for : Furthermore, this pattern can be a bullish pattern (meaning it hindsights for a price move up) or a bearish pattern (meaning it hindsights for a price move down). If you want to learn more about these patterns,…

Below you’ll find the ultimate database with every single harmonic pattern (and all the other types of technical analysis chart patterns if you are interested: candlestick patterns and traditional patterns). Each harmonic pattern has a dedicated detailed article. Even though these patterns are quite complex patterns, we tried to make it as simple as possible and each article goes into detailed…