The TP1 on this trade has been hit. This TP1 is for the crab pattern as well as the TP2. In my post about this trade, I had said that I am VERY BEARISH on this pair and that I am expecting a MUCH larger downtrend to be developing. This crab is only a part of that downtrend.
However, I am still going to be somewhat cautious and will take some profit off this trade by closing 50% of my positions and letting the other half ride down. If there is a retracemernt in this pair, I will be looking to add SHORT positions upon that retrace.
*DISCLAIMER: Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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Hello
I'm new at spotting harmonic patterns so may be I'm a little "naif" but a crab shouldn't have a B retracement of 0,382 - 0,618 (0.886 the deep version)?
EverythingForex
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Yes, crab's can have a B point retracement of the XA leg of .382-618. Bat's have a B point retracement of .382-.5. So understandably, many people get confused as to which pattern it should be because their B points are so similar. So when you see a possible pattern and it has a .382 retracement, the question is: which one do you use? The crab or the bat? Other people may have other answers but for me, it really depends a lot on the wave count I am seeing and which pattern "fits" better within that wave count. As you may know if you have been following me and my posts, my trading system is NOT a pure harmonics one. Harmonic patterns, though integral to my system, are not the main backbone. Wave counts are. Sorry, if I went a little off-topic on your question. Hope I answered it though.
Fabio.M
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Thank you very much for the quick answer. I see, but what i meant is that in this case the B retracement is 0.733 which is a value that doesn't fit any pattern...
EverythingForex
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I think you are misunderstanding what it means when the B point fib value should be .382-.618 for the crab. Reason why you see .733 and it is still a crab is because when it says that the B point should be .382..618, that DOES NOT mean it needs to be BETWEEN .382-.618. The max value for the crab is .618. Yes. But that means anywhere between .618 and the next fib value that would define a different pattern (which would be .786 which would be the MINIMUM fib value for a butterfly pattern) will still be correct for a crab. To put it simply, a crab's B point is BETWEEN .382 to .786. Anything above .786 makes it a butterfly pattern. So same goes for the bat. It's B point value is BETWEEN .382 to .618. Anything from .618 and above will make it either a crab or butterfly.
Fabio.M
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Thus I misunderstood Carney's book. You opened my mind. Thank You a lot. Good work.
I'm new at spotting harmonic patterns so may be I'm a little "naif" but a crab shouldn't have a B retracement of 0,382 - 0,618 (0.886 the deep version)?