The harmonic 5-0 is a variation on normal harmonic patterns as the initial impulse XA is preceded by a stronger origin move OX.
Bullish 5-0
- OX is an origination move to create the point X
- AB is a retracement in the range 1.13 – 1.618 of XA
- BC then follows as a 1.616 – 2.24 retracement of AB
- Finally, CD will be a retracement of 0.50 of the AB leg.
Bearish 5-0
The opposite set up of the 5-0 pattern indicates an opportunity for fall in price after the completion of D. This is the Bearish 5-0.
- OX is an origination move to create the point X
- AB is a retracement in the range 1.13 – 1.618 above XA
- BC then follows as a 1.616 – 2.24 retracement of AB
- Finally, CD will complete the pattern. as a retracement of 0.50 of AB.
