What it looks like
Five swing points X, A, B, C, D. AB pulls back 38 to 62% of XA. BC moves back towards A. CD then makes a long, stretched move well beyond X, so D completes at 161.8% of XA from A. Bullish: XA rises and D is a deep low. Bearish: XA falls and D is a high far above X.
What it means
The swings have reached the point where the Crab says the move should end, known as point D. It is a forecast made from proportions, not a sign that price has turned. Harmonic traders believe moves often stall at these Fibonacci proportions because many orders and profit targets gather there. Point D gives a precise place to act and a tight place to be proved wrong, which is the appeal of the pattern.
Bullish and bearish versions
How to trade it
- 1
Label X, A, B, C and D and check the ratios fit the Crab.
- 2
Confirmation (optional but common): a candle that turns at D, such as a close back up from D for the bullish version.
- 3
Entry: buy near D for the bullish version, sell near D for the bearish.
- 4
Stop: just beyond D. Example on US30 (bearish): X 47,000, A 46,600, B 46,800 (50%), C 46,650, D 47,247 (161.8%). Sell near 47,240 with a stop at 47,280, a 40 point risk. The last leg is about 597 points, so targets are about 47,020 (38%) and 46,877 (62%).
- 5
Targets: 38% and then 62% of the last leg (C to D), measured back from D.
A close beyond D: below D for the bullish version, above D for the bearish version.
Where it works best
At the end of sharp, extended moves on 1 hour to daily charts of indices and gold, where D lands at or near a major level.
WickSpeak finds bullish and bearish Crab patterns automatically, measures the ratios for you and names the pattern on the candles that made it. The note says what it is, how to trade it near D and that a close beyond D proves it wrong. In Playbook you can use it as a condition in a play, alone or alongside other patterns and indicators (any of the 146 patterns can be a condition), and backtest it on past candles with your own costs.
Common mistakes
- Selling too early in the long CD leg before D is reached.
- Using a tight stop in a fast market where D is overshot by a few points before the turn.
- Confusing it with the Deep Crab, which has a much deeper B.
Related patterns
Questions traders ask
What are the Crab pattern ratios?
B retraces 38 to 62% of XA, and D extends to 161.8% of XA. It is one of the most stretched harmonic patterns.
Why is the Crab's D so far away?
The 161.8% extension marks an overstretched move. The idea is that price has run further than its swings normally allow.
What proves a Crab wrong?
A close beyond D: below D for a bullish Crab, above D for a bearish one.
Are harmonic patterns reliable?
A harmonic pattern is a forecast made from proportions, not a sign that price has turned. That is why many traders wait for a candle to turn at D before entering. We do not quote win rates; backtest the pattern on your own market first.