__Most Classical Technical Trading patterns are Breakout pattern and are more vulnerable to failure, whipsaws or false break. Harmonic Trading Patterns are reversals patterns which Identify Potential Reversal Zones to Sell when Markets are rising and Buy when markets are falling. These exhaustion trades give you the Best Entry to enter the trade (Sometimes right at the top or bottom) with an Amazing Risk Reward ratio. All technical analysis studies are Probabilistic in nature and there are always going to be few patterns which would fail. But the Harmonic Trading pattern offers a very good hit ratio with the pattern occurrence and will make you lose very little when you are wrong as compared to what you Gain when the Pattern Works. Fibonacci is the very foundation of the design of our nature which also works in Stock Markets. These magnificent Fibonacci combinations offer one of the Best Trade Setups you can ever trade in all Time Frames using the Harmonic Trading.__

Below is the listed each and every Harmonic pattern in detail.

__AB=CD____ALTERNATE AB=CD____BAT____GARTLEY____BUTTERFLY____CRAB____SHARK____3 DIVES__

__AB=CD PATTERN__

__AB=CD PATTERN__

The AB=CD Pattern is one of the classic chart patterns which is repeated over and over again. The pattern consists of three legs, with two equal legs labelled AB and CD, together they form a zig-zag shape.

__CHARACTERISTICS OF AB=CD PATTERN __

__CHARACTERISTICS OF AB=CD PATTERN__

*AB**SHOULD BE EQUAL TO***CD***C**POINT CAN RETRACE BETWEEN***382**TO**0.886**OF**AB***BC**PROJECTION CAN BE BETWEEN***13**TO**3.14***BC**PROJECTION SHOULD CONVERGE AT THE COMPLETION OF***AB=CD***POINT*OR**D**IS KNOWN AS THE**PRZ****POTENTIAL REVERSAL ZONE***A***618**RETRACEMENT AT THE**C**POINT WILL RESULT IN A**1.618**BC PROJECTION*A***786**RETRACEMENT AT THE**C**POINT WILL RESULT IN A**1.27**BC PROJECTION*An***886**RETRACEMENT AT THE**C**POINT WILL RESULT IN A**1.13**BC PROJECTION

__TRADING AB=CD PATTERN__

__TRADING AB=CD PATTERN__

- POINT
**D**WHICH IS THE**PRZ**IS THE BUYING OR (SELLING) POINT - EXIT IF PRICE CLOSES BELOW OR (ABOVE) THE LOW OR (HIGH) OF POINT
**D** - PROFIT TARGET IS GENERALLY
**2%**TO**61.8%**OF**CD**LEG OF THE PATTERN.

__BULLISH AB=CD PATTERN IN NIFTY__

__BULLISH AB=CD PATTERN IN NIFTY__

__BEARISH AB=CD PATTERN IN MAHINDRA AND MAHINDRA__

__BEARISH AB=CD PATTERN IN MAHINDRA AND MAHINDRA__

__ALTERNATE AB=CD__

__ALTERNATE AB=CD__

The Alternative AB=CD Pattern is exactly the same as the AB=CD pattern. The most noticeable difference between the alternative AB=CD and the regular AB=CD is the length of the CD leg. There are different Fibonacci ratios that create the reversal point. The turning point can be a 1.27 or a 1.618 extension and that will depend on the length of the retracement connecting the AB leg to the CD leg.

__ALTERNATE AB=CD PATTERN BASICS__

__ALTERNATE AB=CD PATTERN BASICS__

*RETRACEMENT OF***AB**SHOULD BE**2%**TO**88.6%**, ALTHOUGH**61.8%**IS PREFERRED.*RETRACEMENT OF***BC**SHOULD BE**113%**TO**314%**.*PROJECTION OF***AB**SHOULD BE**127%**OR**8%**.*PRZ***D**SHOULD BE THE OVERLAPPING ZONE OF**BC**RETRACEMENT AND**AB**

__TRADING THE ALTERNATE AB=CD PATTERN__

__TRADING THE ALTERNATE AB=CD PATTERN__

*PRZ D IS THE BUYING OR SELLING ZONE.**THE TARGET SHOULD BE 38.2% TO 88.6% OF THE ENTIRE PATTERN.**THE STOP LOSS SHOULD BE JUST BELOW THE PRZ.*

__BEARISH ALTERNATE AB=CD PATTERN IN NIFTY DAILY CHART__

__BEARISH ALTERNATE AB=CD PATTERN IN NIFTY DAILY CHART__

__BAT PATTERN__

__BAT PATTERN__

The **BAT** Pattern is considered to be one of the most accurate patterns exhibiting a higher success rate than any other harmonic patterns and requires a smaller stop loss than most patterns. It is made up of 5 swing points, X, A, B, C and D and come in Bullish and Bearish BAT variations. The pattern incorporates the **0.886 XA RETRACEMENT **, as the defining element in the** POTENTIAL REVERSAL ZONE (PRZ).**

__CHARACTERISTICS OF BAT PATTERN__

__CHARACTERISTICS OF BAT PATTERN__

*THE***B**POINT RETRACEMENT MUST BE LESS THAN A**618**, PREFERABLY A**0.50**OR**0.382**OF THE**XA**LEG.*BC**LEG CAN RETRACE BETWEEN***382**TO**0.886**OF**AB**LEG.*BC**PROJECTION SHOULD BE BETWEEN***618**TO**2.618**TO FORM**D**.*CD**LEG SHOULD RETRACE UPTO***.886**OF**XA**LEG*IN ADDITION, THE***AB=CD**PATTERN WITHIN THE BAT IS EXTENDED AND USUALLY REQUIRES A**27AB=CD**CALCULATION*POINT*WHERE**D**IS THE**PRZ**OR**POTENTIAL REVERSAL ZONE****BC PROJECTION**AND**886**RETRACEMENT OF**XA****OVERLAPS**.

__TRADING THE BAT PATTERN__

__TRADING THE BAT PATTERN__

**PRZ**(D POINT) IS THE BUYING OR (SELLING) ZONE.- STOP LOSS IS THE LOW OR (HIGH) OF
**PROFIT TARGET**__TARGET 1__=**2%-61.8%**RETRACEMENT OF**CD**__TARGET2__=**8%**RETRACEMENT OF**AD**__TARGET 3__= PROJECTED**XA**DISTANCE FROM THE PRZ LEVEL AT**D**

__BULLISH BAT PATTERN IN GAIL DAILY CHART__

__BULLISH BAT PATTERN IN GAIL DAILY CHART__

__BEARISH BAT PATTERN IN HDFC DAILY CHART__

__BEARISH BAT PATTERN IN HDFC DAILY CHART__

__GARTLEY PATTERN__

__GARTLEY PATTERN__

The **GARTLEY** is made up of a series of price reversals and the retracement percentages that establish an ideal pattern. The specific retracements of the **B **point at a **0.618** and the **D** point at a **0.786** were assigned to the pattern.

__CHARACTERISTICS OF GARTLEY PATTERN __

__CHARACTERISTICS OF GARTLEY PATTERN__

*PRECISE*.**618**B POINT RETRACEMENT OF XA LEG*C POINT WITHIN RANGE OF***382-0.886**RETRACEMENT.*BC PROJECTION MUST NOT INCREASE***618***TO FORM***D**.*THE D POINT FORMS AT THE 0***.786**RETRACEMENT OF XA.*EQUIVALENT***AB=CD**PATTERN IS MOST COMMON.*POINT*WHERE**D**IS THE**PRZ**OR**POTENTIAL REVERSAL ZONE****BC PROJECTION**AND**786**RETRACEMENT OF XA**OVERLAPS**.

__TRADING THE GARTLEY PATTERN__

__TRADING THE GARTLEY PATTERN__

**PRZ**(D POINT) IS THE BUYING OR (SELLING) ZONE.- STOP LOSS IS THE LOW OR (HIGH) OF X.
**PROFIT TARGET**__TARGET 1__=**2%-61.8%**RETRACEMENT OF**CD**__TARGET2__=**8%**RETRACEMENT OF**AD**__TARGET 3__= PROJECTED**XA**DISTANCE FROM THE PRZ LEVEL AT**D**

__BULLISH GARTLEY IN YESBANK DAILY CHART__

__BULLISH GARTLEY IN YESBANK DAILY CHART__

__BEARISH GARTLEY IN M&M DAILY CHART__

__BEARISH GARTLEY IN M&M DAILY CHART__

__CRAB PATTERN__

__CRAB PATTERN__

The Harmonic Pattern **CRAB** is identified by its long stretching swing points. In this pattern, the **PROFIT REVERSAL ZONE** or the **PRZ **level at swing point **D** is overstretched and shoots beyond the initial swing point **X.**

__CHARACTERISTICS OF CRAB PATTERN__

__CHARACTERISTICS OF CRAB PATTERN__

**AB**LEG CAN RETRACE BETWEEN**382**TO**0.618**OF**XA**LEG.**BC**LEG CAN RETRACE BETWEEN**382**TO**0.886**OF**AB**LEG.**BC**PROJECTION SHOULD BE BETWEEN**24**TO**3.618**TO FORM**D.****CD**IS AN EXTENSION OF UPTO**618**OF**XA**LEG.*POINT*WHERE AN EXTREME PROJECTION OF THE**D**IS THE**PRZ**OR**POTENTIAL REVERSAL ZONE****BC**LEG AND**618**OF**XA**LEG**OVERLAPS**.

__TRADING THE CRAB PATTERN__

__TRADING THE CRAB PATTERN__

**PRZ**(D POINT) IS THE BUYING OR (SELLING) ZONE.- EXIT IF PRICE CLOSES BELOW OR (ABOVE) THE LOW OR (HIGH) OF POINT
**D** **PROFIT TARGET**- TARGET 1 =
**2%**RETRACEMENT OF**CD** - TARGET 2 =
**8%**RETRACEMENT OF**CD**

__BULLISH CRAB IN NIFTY DAILY CHART__

__BULLISH CRAB IN NIFTY DAILY CHART__

__DEEP CRAB PATTERN__

__DEEP CRAB PATTERN__

The critical aspect of **DEEP CRAB** pattern is the tight Potential Reversal Zone created by the **1.618** of the XA leg and an extreme projection of the BC leg but employs a **0.886** retracement of XA leg at the B point. The pattern requires a very small stop loss and usually volatile price action in the Potential Reversal Zone.

__CHARACTERISTICS OF DEEP CRAB PATTERN__

__CHARACTERISTICS OF DEEP CRAB PATTERN__

**AB**LEG SHOULD RETRACE UPTO**886**OF**XA**LEG.**BC**LEG CAN RETRACE BETWEEN**382**TO**0.886**OF**AB**LEG.**BC**PROJECTION SHOULD BE BETWEEN**618**TO**3.618**TO FORM**D.****CD**IS AN EXTENSION OF UPTO**618**OF**XA**LEG.*POINT*WHERE AN EXTREME PROJECTION OF THE**D**IS THE**PRZ**OR**POTENTIAL REVERSAL ZONE****BC**LEG AND**618**OF**XA**LEG**OVERLAPS**.

__TRADING THE DEEP CRAB PATTERN__

__TRADING THE DEEP CRAB PATTERN__

**PRZ**(D POINT) IS THE BUYING OR (SELLING) ZONE.- EXIT IF PRICE CLOSES BELOW OR (ABOVE) THE LOW OR (HIGH) OF POINT
**D** **PROFIT TARGET**- TARGET 1 =
**2%**RETRACEMENT OF**CD** - TARGET 2 =
**8%**RETRACEMENT OF**CD**

__BUTTERFLY PATTERN__

__BUTTERFLY PATTERN__

THE BUTTERFLY PATTERN IS A VERY PRECISE PATTERN WHICH FOCUSES ON FINDING REVERSALS AT NEW LOWS (BULLISH) OR NEW HIGHS (BEARISH). IT IS A FOUR-LEGGED PATTERN, VIZ, XA, AB, BC AND CD. THE POINT D IS A NEW HIGH OR LOW AND A POTENTIAL REVERSAL POINT IF THE FIBONACCI FIGURES ALIGNS WITH THE STRUCTURE*. *

The Butterfly is a specific 5-point extension structure that possesses a distinct alignment of Fibonacci ratios to validate the pattern. The primary determining element of the pattern is a precise 0.786 B point retracement of the XA leg. The Butterfly utilizes only a 1.27 XA projection as the most critical number in the PRZ. Furthermore, the equivalent AB=CD pattern serves as a minimum requirement for the pattern’s completion. But, the Alternate 1.27 AB=CD pattern is more common to the structure. The BC projection is another defining element of the pattern, as it must be at least a 1.618 extension.

__BUTTERFLY PATTERN BASICS__

__BUTTERFLY PATTERN BASICS__

*Minimum AB=CD completion with Alternate 1.27 AB=CD pattern most common.**C point retracement can vary between a 0.382 to a 0.886, although 0.618 is*

*BC projection can vary from 1.13 to 3.618 and depends upon the C point*

*Alternate AB=CD patterns are common within the structure.*

__THE IDEAL BUTTERFLY PATTERN ELEMENTS__

__THE IDEAL BUTTERFLY PATTERN ELEMENTS__

*Precise 78.6% B point retracement of XA leg.**BC projection must be at least a 1.618.**Equivalent AB=CD pattern is a minimum requirement, but the Alternate 1.27 AB=CD*

is the most common.*27 XA projection most critical number in the Potential Reversal Zone (PRZ).**No 1.618 XA**C point within the range of 0.382–0.886 retracements.*

* *__THE PERFECT BUTTERFLY PATTERN ELEMENTS__

__THE PERFECT BUTTERFLY PATTERN ELEMENTS__

*Exact 0.786 B point retracement of the XA leg.**27 XA projection exclusively.**618 BC projection.**Alternate 1.27 AB=CD in the PRZ.**C point with a range between 50 to 0.886 retracement.*

__TRADING THE BUTTERFLY PATTERN__

__TRADING THE BUTTERFLY PATTERN__

*THE BUTTERFLY PATTERN IS DEPENDENT UPON THE PRECISE 78.6% RETRACEMENT AND THE 127% RECIPROCAL RATIO AND IT ACTS AS A VERY STRONG SUPPORT AND RESISTANCE ZONES.**THE POTENTIAL REVERSAL ZONE D IS THE BUYING OR SELLING ZONE.**THE PROFIT TARGET IS GENERALLY THE ENTIRE XA LEG OR CD LEG OF THE PATTERN.**THE STOPLOSS SHOULD BE THE 161.8% OF XA LEG.*

__BEARISH BUTTERFLY PATTERN IN BHEL ON DAILY PRICE CHART__

__BEARISH BUTTERFLY PATTERN IN BHEL ON DAILY PRICE CHART__

__BULLISH BUTTERFLY PATTERN IN HINDALCO DAILY PRICE CHART__

__BULLISH BUTTERFLY PATTERN IN HINDALCO DAILY PRICE CHART__

__SHARK PATTERN__

__SHARK PATTERN__

*THE SHARK PATTERN IS A 4-LEG PATTERN AND IS DEPENDANT UPON THE POWERFUL 88.6% RETRACEMENT AND THE 113% RECIPROCAL RATIO. IT IS DENOTED BY O, X, A, B & C RESPECTIVELY. THE RETRACEMENT OF AB SHOULD BE BETWEEN 113% AND 161.8% OF XA. THE PROJECTION OF BC SHOULD BE 161.8% TO 224% OF AB. THE POTENTIAL REVERSAL ZONE C IS THE ZONE WHICH IS THE OVERLAPPING POINT OF BC PROJECTION AND 88.6% RETRACEMENT OR 113% RECIPROCAL RATIO OF OX.*

__SHARK PATTERN BASICS__

__SHARK PATTERN BASICS__

*DIFFERENT FROM THE M-TYPE AND W-TYPE ALIGNMENTS IN OTHER PATTERNS BUT THE SAME HARMONIC TRADING PRINCIPLES APPLY.**COMPRISED OF TWO INDEPENDENT PRICE SEGMENTS –**FAILED HARMONIC IMPULSE WAVE.**EXTREME HARMONIC IMPULSE WAVE.**POSSESSES**DEFINED PROFIT TARGET.**REQUIRES ACTIVE MANAGEMENT.**POSSESSES**PRECISE RATIOS TO DEFINE THE SUPPORT/RESISTANCE ZONE.**AS EFFECTIVE AS OTHER HARMONIC PATTERNS*.

__TRADING THE SHARK PATTERN__

__TRADING THE SHARK PATTERN__

*THE SHARK PATTERN IS DEPENDENT UPON THE POWERFUL 88.6% RETRACEMENT AND THE 113% RECIPROCAL RATIO AND IT ACTS AS A VERY STRONG SUPPORT AND RESISTANCE ZONES.**THE POTENTIAL REVERSAL ZONE C IS THE BUYING OR SELLING ZONE.**THE PROFIT TARGET IS GENERALLY 38.2% TO 61.8% OF BC LEG OF THE PATTERN.**THE STOPLOSS SHOULD BE THE HIGH OR LOW POINT OF THAT PARTICULAR LEG.*

* *__BEARISH SHARK IN SBIN MONTHLY CHART__

__BEARISH SHARK IN SBIN MONTHLY CHART__

__THREE DIVES PATTER____N__

__THREE DIVES PATTER__

*The Three Dives pattern is a *

*reversal*

*pattern characterised by a series of*

**higher****highs**or**lower****lows**that complete at a**127%**or**161.8%***Fibonacci*

*extension. This pattern offers the most precise*

**entry point**with the greatest profit potential. This will either be a**127%**or**161.8%**Fibonacci extension. The**stop****loss**should be placed below the**161.8%**Fibonacci extension level of the**second dive**. A simple way of finding a**profit target**is by drawing a Fibonacci retracement from the**very high of the start****of the pattern to the very low of the pattern**, where the pattern completes the**third dive**. The take profit is the**61.8%**Fibonacci level of this swing.__BULLISH 3 DIVE SHARK IN SBIN MONTHLY CHART__

__BULLISH 3 DIVE SHARK IN SBIN MONTHLY CHART__