TRADE FOREX WITH BEARISH CRAB HARMONIC CHART PATTERN ~ how to do forex trading business
"My heroes are those who risk their capital
every day to make more profit"
..............................................................................yourfxguide
The first part of this post explains "How to draw a bearish crab harmonic chart pattern", and the second part explains "How to apply the bearish crab harmonic chart pattern in forex trading". Lets see how a bearish crab chart pattern can be drawn.To draw a bearish crab chart pattern, first we will find the X and A points on the price chart. X and A points is found on the top and bottom of a bearish trend respectively.
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| Source: metatrader4.com |
In the second step, draw a Fibonacci retracement tool from X to A to find the retracement level at point B, which should be 38.2-61.8 percent. It also means Fibonnaci ratio of X-B is 0.382-0.618, which confirms the point B.
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| Source: metatrader4.com |
In the second step, draw a Fibonacci retracement tool from A to B to find the retracement level at point C, which should be 38.2-88.6 percent. It also means Fibonnaci ratio of A-C is 0.382-0.886, which confirms the point C.
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| Source: metatrader4.com |
In the second step, draw a Fibonacci retracement tool from B to C to find the retracement level at point D, which should be 261.8-361.8 percent. It also means Fibonnaci ratio of B-C is 2.618-3.618, which confirms the point D.
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| Source: metatrader4.com |
In the fifth step, the point D is reconfirmed by measuring the Fibonacci ratios of X-D. Here the D point is confirmed at 1.618 Fibonacci ratio of X-D. To find the ratio, a Fibonacci retracement is draw from X to A. Draw a Fibonacci retracement tool from X to A to find the retracement level at point D, which should be 161.8 percent. It also means Fibonnaci ratio of B-C is 1.618, which confirms the point D.
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| Source: metatrader4.com |
In the final step, XA, XB, AB, BC, BD straight lines are drawn.
A sell order is placed upon the completion of the bearish crab harmonic chart pattern. But smart traders often love to place a long order at the point C. The profit target for the long order at point C is placed at the point D, and the profit target for the short order at point D is placed at the 61.8% or 50% retracement level of point C. Even the profit target for the short order at point D can wisely be placed on the AC trend line.
If you have any questions, suggestions, or complements, please drop a comment below.
A sell order is placed upon the completion of the bearish crab harmonic chart pattern. But smart traders often love to place a long order at the point C. The profit target for the long order at point C is placed at the point D, and the profit target for the short order at point D is placed at the 61.8% or 50% retracement level of point C. Even the profit target for the short order at point D can wisely be placed on the AC trend line.
If you have any questions, suggestions, or complements, please drop a comment below.
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