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Harmonic Pattern

Any of the XABCD patterns (Gartley, Bat, Butterfly, Crab) that use precise Fibonacci ratios to identify Potential Reversal Zones.

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Harmonic Patterns are a class of chart patterns defined by specific Fibonacci ratios between consecutive legs. Unlike classical patterns, harmonics require exact ratio compliance — not approximate — to define a valid Potential Reversal Zone (PRZ).

The PRZ is where two or more Fibonacci measurements cluster at the same price. Entries are placed as price reaches the PRZ, with stops beyond the key ratio level. Targets use Fibonacci extensions of the CD leg or prior swings.

  • All harmonics share the XABCD structure — the ratios differ per pattern.
  • Software scanners are commonly used to automate ratio compliance checks.
#harmonic#reversal

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