Bullish Deep Crab
The Deep Crab is a variation on the Crab harmonic pattern. The variations between the two appear in the definition of a deeper AB retracement and deeper CD retracement of the Case a. setup. For a Bullish set up, the Fibonacci ratios define the pattern as:
- AB is a 0.886 retracement of the first upwards impulse XA
- BC can be either (Case a.) a 0.382 or (Case b.) 0.886 retracement of AB
- In Case a.; CD will be a retracement of 2.618 below B
- In Case b.; CD will be a retracement of 3.618 below B
- CD will be a retracement of 1.618 from the original impulse origin X
Bearish Deep Crab
The completion of a Bearish Deep Crab Pattern occurs when the following strict ratios are formed:
- AB is a 0.886 retracement of the first downwards impulse XA
- BC can be either (Case a.) a 0.382 or (Case b.) 0.886 retracement of AB
- In Case a.; CD will be a retracement of 2.618 above B
- In Case b.; CD will be a retracement of 3.618 above B
- CD will be a retracement of 1.618 from the original impulse origin X
Deep Crab Pattern Identification with PatternSurfer
On arrival of a Deep Crab pattern, PatternSurfer will display all coordinates, including the Actual Pattern Completion Price (D) as per the market prices, as well as the Ideal Pattern Completion Price (an exact D as per the strict Fibonacci ratio). D defines the entry point for the Deep Crab pattern.
With PatternSurfer, users are also able to identify the formation of a Deep Crab pattern before point D is reached. This is called an “Approaching” pattern, and traders will be made aware of the expected (Ideal) Completion Price, and the current Actual Completion Price which is approaching the Ideal D.