Harmonic Pattern Calculator
Calculate harmonic pattern ratios for Gartley, Butterfly, Bat, and Crab patterns. Enter values for instant results with step-by-step formulas.
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer
Harmonic Pattern Calculator
Calculator
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Formula: D = A + (XA x Fibonacci Ratio) | PRZ = Cluster of Fibonacci completions
Worked example โ PRZ at 1.0968 | Stop Loss below 1.0840 | TP1 at 1.1000 | TP2 at 1.1040 | Risk:Reward = 1:2.5
Formula
D = A + (XA x Fibonacci Ratio) | PRZ = Cluster of Fibonacci completions
Where XA is the initial price swing, and each subsequent leg (AB, BC, CD) must align with specific Fibonacci ratios unique to each pattern type. The D point defines the Potential Reversal Zone where price is expected to reverse.
Worked Examples
Example 1: Bullish Gartley Pattern on EUR/USD
Problem:Identify a bullish Gartley pattern with XA leg of 150 pips starting from price 1.1000. Calculate the key Fibonacci levels for points B, C, D and the PRZ.
Solution:XA leg = 150 pips from 1.1000 to 1.0850 (bearish XA for bullish pattern) AB = 61.8% of XA = 150 x 0.618 = 92.7 pips up from A = 1.0943 BC = 61.8% of AB = 92.7 x 0.618 = 57.3 pips down = 1.0886 CD = 127.2% of BC = 57.3 x 1.272 = 72.9 pips up D point (PRZ) = 78.6% retracement of XA = 150 x 0.786 = 117.9 pips = 1.0968
Result:PRZ at 1.0968 | Stop Loss below 1.0840 | TP1 at 1.1000 | TP2 at 1.1040 | Risk:Reward = 1:2.5
Example 2: Bearish Crab Pattern on Gold
Problem:Calculate a bearish Crab pattern with XA leg of $50 starting from $1,950. Determine the extended D point and optimal entry/exit levels.
Solution:XA leg = $50 from $1,950 to $2,000 (bullish XA for bearish pattern) AB = 50% of XA = $25 down from A = $1,975 BC = 61.8% of AB = $15.45 up = $1,990 CD = 261.8% of BC = $40.45 down D point = 161.8% extension of XA = $50 x 1.618 = $80.90 = $2,031
Result:PRZ at $2,031 | Stop Loss above $2,040 | TP1 at $2,010 | TP2 at $1,990 | Risk:Reward = 1:2.3
Frequently Asked Questions
What are harmonic patterns in trading and how do they work?
Harmonic patterns are geometric price structures based on Fibonacci ratios that help traders identify potential reversal zones in the market. They were pioneered by H.M. Gartley in 1935 and further developed by Scott Carney and Larry Pesavento. Each pattern consists of specific price swings labeled X, A, B, C, and D, where the ratios between these legs must align with precise Fibonacci numbers. When price reaches the completion point (D), it enters a Potential Reversal Zone where the probability of a trend reversal is statistically higher. Traders use these patterns to find high-probability entries with clearly defined risk-to-reward ratios.
What is the Gartley pattern and what Fibonacci ratios define it?
The Gartley pattern, also known as the Gartley 222, is the original harmonic pattern identified by H.M. Gartley in his 1935 book. In a bullish Gartley, the AB leg retraces 61.8% of the XA leg, the BC leg retraces between 38.2% and 88.6% of the AB leg, and the CD leg extends 127.2% to 161.8% of the BC leg. The critical D point must complete at the 78.6% retracement of the XA leg. This pattern has one of the highest success rates among harmonic patterns because the D point completion zone is relatively shallow, providing better risk-to-reward setups compared to extended patterns like the Crab.
How does the Butterfly pattern differ from the Gartley pattern?
The Butterfly pattern, defined by Bryce Gilmore and refined by Scott Carney, differs from the Gartley primarily in the D point completion level. While the Gartley completes at a 78.6% retracement of XA (within the XA range), the Butterfly extends beyond point X, completing at the 127.2% extension of the XA leg. The AB leg retraces 78.6% of XA (deeper than the Gartley), and the CD leg typically extends 161.8% to 261.8% of the BC leg. Because the D point extends beyond X, Butterfly patterns often signal stronger reversals and are particularly effective at identifying significant market turning points and trend exhaustion zones.
What is the Potential Reversal Zone and how should traders use it?
The Potential Reversal Zone (PRZ) is the price area where the D point of a harmonic pattern completes, creating a cluster of Fibonacci levels that suggest a probable reversal. The PRZ is not a single price point but a zone typically spanning a small range around the ideal D completion level. Traders should wait for price to enter the PRZ and then look for confirmation signals such as bullish or bearish engulfing candles, pin bars, divergences on RSI or MACD, or volume spikes. Entering blindly at the PRZ without confirmation is a common mistake. Stop losses should be placed just beyond the PRZ boundary, and initial targets should be set at the 38.2% and 61.8% retracement levels of the CD leg.
What is the Bat pattern and why is it considered highly reliable?
The Bat pattern, discovered by Scott Carney in 2001, is considered one of the most accurate harmonic patterns due to its precise Fibonacci alignment. The AB leg retraces between 38.2% and 50% of XA, the BC leg retraces 38.2% to 88.6% of AB, and the CD leg extends 161.8% to 261.8% of BC. The D point completes at exactly 88.6% retracement of the XA leg, which is a deep retracement that often coincides with strong support or resistance levels. The tighter AB retracement range (38.2% to 50%) makes the Bat pattern more selective than others, filtering out lower quality setups and resulting in a historically higher win rate when traded with proper confirmation and risk management.
How does the Crab pattern provide extreme reversal opportunities?
The Crab pattern, also identified by Scott Carney, features the deepest D point extension of any standard harmonic pattern, completing at the 161.8% Fibonacci extension of the XA leg. The AB leg retraces 38.2% to 61.8% of XA, the BC leg retraces 38.2% to 88.6% of AB, and the CD leg extends a dramatic 261.8% to 361.8% of BC. This extreme extension means the Crab pattern identifies major turning points where price has been pushed to an unsustainable extreme. While the extended move means a wider stop loss is needed, the subsequent reversal is often equally dramatic, providing exceptional reward-to-risk ratios of 3:1 or better when the pattern validates correctly.
What timeframes work best for harmonic pattern trading?
Harmonic patterns can be traded on any timeframe, but their reliability generally increases on higher timeframes. Patterns on the daily and 4-hour charts tend to produce the most reliable signals because they reflect broader market sentiment and filter out noise. The 1-hour chart offers a good balance between signal frequency and reliability for intraday traders. Patterns on 15-minute and 5-minute charts generate more frequent signals but have lower completion rates and are more susceptible to false breakouts. Many professional harmonic traders use a multi-timeframe approach, identifying patterns on higher timeframes for directional bias and then using lower timeframes to fine-tune entries within the Potential Reversal Zone.
How do you manage risk when trading harmonic patterns?
Risk management for harmonic patterns follows a structured approach based on the pattern geometry. The stop loss should be placed just beyond the PRZ, typically a few pips past the extreme of the D point completion level. For position sizing, most experienced harmonic traders risk no more than 1-2% of their account per trade. Profit targets are typically set at three levels: TP1 at the 38.2% retracement of the CD leg, TP2 at the 61.8% retracement of CD, and TP3 at the full retracement back to point C. A common strategy is to take partial profits at each level, moving the stop loss to breakeven after TP1 is hit, thereby creating a risk-free trade for the remaining position.
What confirmation signals should traders look for at the PRZ?
Before entering a trade at the Potential Reversal Zone, traders should seek multiple forms of confirmation to increase the probability of success. Candlestick patterns like hammer, doji, or engulfing candles at the PRZ provide strong visual confirmation of buyer or seller exhaustion. Momentum oscillators such as RSI showing oversold or overbought conditions, or MACD histogram divergences, add another layer of validation. Volume analysis is equally important because a volume spike followed by decreasing volume at the PRZ suggests the current move is losing steam. Some traders also use Bollinger Band touches or Keltner Channel extremes at the PRZ as additional confluences that strengthen the trade setup significantly.
Can harmonic patterns be combined with other technical analysis methods?
Combining harmonic patterns with other technical analysis methods creates powerful confluences that significantly improve trading accuracy. Support and resistance levels that align with the PRZ create a double layer of expected price reaction. Trendlines and channel boundaries that converge with the D point completion add structural confirmation. Moving average clusters near the PRZ, particularly the 50-period and 200-period moving averages, provide dynamic support or resistance confluences. Fibonacci extensions and retracements from separate swing points that overlap with harmonic levels create particularly strong zones. Many professional traders also integrate Elliott Wave analysis with harmonic patterns, as the D point often coincides with wave completion points, creating a comprehensive analytical framework.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer ยท Editorial policy
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