Advanced Harmonic Patterns are complex, rule-based reversal structures built on precise Fibonacci ratios. They offer high-probability trade entries by identifying market exhaustion zones with pinpoint accuracy. These patterns are especially favoured by technical traders seeking structured entry and exit points, and they apply effectively across all timeframes in forex, stocks, and commodities.

Why Use Advanced Harmonic Patterns?

• Defined entry and exit points using exact Fibonacci levels
• Strong reversal signals with favourable risk-to-reward ratios
• Compatible with all timeframes, from scalping to swing trading
• Enhances discipline and objectivity in technical analysis

Deep Crab Pattern

Structure

• AB = 0.886 retracement of XA
• CD = 2.24 to 3.618 extension of BC
• XD = 1.618 extension of XA

Application

• Targets aggressive market reversals after extreme price moves
• D-point provides tight stop-loss zone and explosive rebound potential

Alternate Bat Pattern

Structure

• AB = 0.382 retracement of XA
• CD = 2.0 to 3.618 extension of BC
• XD = 1.13 extension of XA

Application

• Ideal in high-volatility environments or early trend exhaustion
• Less common but offers clean entries when spotted correctly

Shark Pattern

Structure

• XA = 0.886 to 1.13 extension of OX
• AB = 1.618 to 2.24 extension of XA
• Entry often occurs at 88.6% retracement of the OX leg

Application

• Unique among harmonics for using a pre-X point
• Often leads to rapid reversals and can precede 5-0 patterns

5-0 Pattern

Structure

• AB = 1.13 to 1.618 extension of XA
• BC = 0.382 to 0.886 retracement of AB
• CD = 0.50 retracement of BC

Application

• Reversal pattern that marks the beginning of a new trend phase
• Often appears after a completed Shark or extreme exhaustion candle

Cypher Pattern

Structure

• AB = 0.382 to 0.618 retracement of XA
• BC = 1.272 to 1.414 extension of XA
• CD = 0.786 retracement of XC

Application

• Excellent for mean-reverting strategies
• D-point offers deep reversion opportunities with minimal drawdown

3-Drives Pattern

Structure

• Three sequential impulse waves (drives) each followed by a retracement
• Retracements typically align with 61.8% and 78.6% levels
• Final drive completes at 127.2% or 161.8% of previous retracement

Application

• Indicates clear exhaustion and potential reversal
• High effectiveness when confirmed with RSI or MACD divergence

Tips for Trading Advanced Harmonic Patterns

• Always use the Fibonacci extension and retracement tools to validate structure
• Wait for confluence with support/resistance, trendlines, or round numbers
• Confirm D-point with price action signals like pin bars, engulfing candles, or divergence
• Use harmonic scanners for speed, but verify manually for accuracy

Example: Deep Crab on EUR/USD 1-Hour Chart

• XA: 1.1050 to 1.0850
• AB: Retraces to 1.1040 (88.6%)
• BC: Drops to 1.0950 (50% AB)
• CD: Extends to 1.0750 (2.618 of BC and 1.618 of XA)
• Entry: Long at 1.0750
• Stop: Below 1.0725
• Targets: 1.0850 and 1.0950

Conclusion

Advanced Harmonic Patterns provide a structured, Fibonacci-driven approach to identifying reversals with clarity and precision. When combined with strong trade management and confirmation tools, these patterns offer a reliable method for navigating volatile markets and maximising reward-to-risk ratios.

To learn how to scan, validate, and trade these advanced harmonic structures like a professional, enrol in our expert-led Trading Courses designed for technical traders, pattern specialists, and disciplined strategists.