TERIYAKI

ICARUS
DISCIPLINE | PLANNING | EXECUTION
THERE ARE MORE THAN 100 HARMONIC PATTERNS

01
 HARMONIC PATTERN: FAQS
Do Harmonic Patterns Work?

Harmonic patterns can indicate reversal points and show how long a price move will last. They are highly
precise patterns that require specific calculations.

Do Harmonic Patterns Work on Stocks?

Harmonic patterns can be found in all financial markets, including forex, stocks, commodities, and more.

Are Harmonic Patterns Profitable?

When traded correctly, harmonic patterns have a strong success rate as compared to other technical
indicators.

Who Invented Harmonic Patterns?

Harmonic patterns were introduced conceptually by H. M. Gartley, and many additional patterns were
introduced by Scott Carney.
HARMONIC PATTERN

Harmonic patterns foundation

was laid by H.M Gartley in
1932 and later y ScottCarney
in his books of "Harmonic
Trading"

Harmonic Patterns reflect

geometric price structures
which adhere to Fibonacci
ratio relationships.

Harmonic Trading attempts to

predict future movements, and
this is what differentiates it
from other strategy or
indicators.
 PATTERN IDENTIFICATION

A Harmonic patterns are eitheir

forming or completed "M" or
C "W" shaped structures or
combinations of "M" and "W"

All primary harmonic patterns

are 5 point patterns with points
X, A, B,C,D

B Price swings between these

points are interrelated and
have harmonic ratios based on
D Fibonacci

X
PATTERN IDENTIFICATION
Harmonic patterns (5 point)
have a critical origin (X)
followed by an impulse wave
(XA)

Followed by a corrective wave

to form the "EYE" of the
pattern at (B) completing (AB)
Leg

Then followed by a trend wave (BC)

Finally completed by a corrective leg

(CD) that ends around the potential
reversal zone or PRZ.
 THINGS TO REMEMBER:

A possible pattern formation is identified after the first 3 legs (XA, AB, BC) are
completed.

A potential trade setup is recognized as the last leg (CD) starts to develop

Fibonacci extensions, retracements and projections are used to determine the potential
reversal zone (PRZ)

All harmonic patterns have a clearly predefined potential reversal zones (PRZ)
BASIC HARMONIC PATTERNS
BULLISH AND BEARISH GARTLEY
XA: This could be any move on the chart and there are no specific
requirements for this move in order to be part of a harmonic pattern.

AB: This move is opposite to the XA move and it should be about 61.8% of
the XA move.

BC: This price move should be opposite to the AB move and it should be
38.2% or 88.6% of the AB move.

CD: The last price move is opposite to BC and it should be 127.2% (extension)
of BC move if BC is 38.2% of AB. If BC is 88.6% of AB, then CD should be
161.8% (extension) of BC.

AD: The overall price move between A and D should be 78.6% of XA.
BULLISH AND BEARISH BUTTERFLY

XA: This could be any move on the chart and there are no specific requirements for
this move in order to be part of a harmonic pattern.

AB: This move is opposite to the XA move and it should be about 78.6% of XA.

BC: This move should be opposite to the AB move and it should be 38.2% or 88.6% of
the AB move.

CD: The last price move is opposite to BC and it should be 161.80% (extension) of BC
move if BC is 38.2% of AB. If BC is 88.6% of AB, then CD should be 261.80%
(extension) of BC.

AD: The overall price move between A and D should be 127% or 161.80% of XA
BULLISH AND BEARISH BAT

XA: This could be any move on the chart and there are no specific requirements for
this move in order to be part of a harmonic pattern.

AB: This move is opposite to the XA move and it should be about 38.2% or 50.0% of
XA.

BC: This move should be opposite to the AB move and it should be 38.2% or 88.6% of
the AB move.

CD: The last price move is opposite to BC and it should be 161.8% (extension) of BC
move if BC is 38.2% of AB. If BC is 88.6% of AB, then CD should be 261.8% (extension)
of BC.

AD: The overall price move between A and D should be 88.6%% of XA.
BULLISH AND BEARISH ALTERNATE BAT

The first important factor is the B point retracement that must be 0.382
retracements or it must be less of the XA leg.

The alternate bat only utilizes 2.0 BC projections or greater than that.

The AB = CD pattern within the alternate bat pattern always extends

requiring a 1.618 AB = CD calculations.

Generally, the best structures use 50% retracement at the midpoint.

BULLISH AND BEARISH CRAB

XA: This could be any move on the chart and there are no specific requirements for
this move in order to be part of a harmonic pattern.

AB: This move is opposite to the XA move and it should be about 38.2% or 61.8% of
XA.

BC: This move should be opposite to the AB move and it should be 38.2% or 88.6% of
the AB move.

CD: The last price move is opposite to BC and it should be 224% (extension) of BC
move if BC is 38.2% of AB. If BC is 88.6% of AB, then CD should 361.80% (extension)
of BC.

AD: The overall price move between A and D should be 161.80% of XA.
Deep Crab Harmonic Pattern

After the XA leg in price, the swing

point B is a retracement of 88.6% of
the XA leg

Following swing point B, the next leg,

BC can run up to 38.2% – 88.6% Fib
ratios of the AB leg

The CD leg reverses at 161.8% of the

XA leg and an extreme (261.8% –
361.8%) extension of the BC leg
CYPHER HARMONIC PATTERN
XA: This could be any move on the chart and there are no specific
requirements for this move in order to be part of a harmonic pattern.

AB: This move is opposite to the XA move and it should be 38.2% or 61.8%
of XA.

BC: This move should be opposite to the AB move and it should be

anywhere between 113.0% and 141.4% of the AB move.

CD: The last price move is opposite to BC and it should be 78.6% of the
general XC move.

The BC move of the Cypher chart pattern goes beyond the XA move.
 SHARK HARMONIC PATTERN
It is a variation of the traditional M and W patterns. The Shark pattern is made up of two separate price segments:
on the one hand, an impulse wave that fails, and on the other, an impulse wave that reaches extreme levels.

The initial impulsive movement is the one that occurs from 0 to X. This movement defines the
retracements that follow.

Then the price corrects until reaching point A.

The prices then resume the initial impulsive movement to point B. This movement should represent
between 113% and 161.8% of the initial 0X movement.

The volatility increases suddenly and the price turns sharply to point C. The movement from B to
C must represent between 88.6% and 113% of the initial movement. It must also represent between
161.8% and 224% of the XA movement. If these conditions are verified, we will open a position
after the price change its direction in C.

The target of the pattern is usually in the price range between A and B and is generally the 38.2-
61.8% retracement of the BC movement that can extend to 161.8%.
HARMONICS
ADVANCE HARMONIC TRADING M2
 121 HARMONIC PATTERN
121 Harmonic Pattern is an advance harmonic pattern in forex which
also uses fibonnaci ratios to identify reversal or continuation of a trend.

The rules that must be respected are:

XA leg is the first swing

AB leg is 0.618 - 0.786 retracement of X-A leg
BC is a new swing
CD leg is 0.5 to 0.618 retracement of X-C leg.
121 HARMONIC PATTERN

121 Harmonic pattern appears in bullish

and bearish version, but also has reversal
and continuation pattern.

Bullish and bearish version tells you where the

price will move when it recaches the final D
point.

Reverse of Continuation 121 patterns tell you

will the trend continue to move in the
direction it was moving prior
forming 121 pattern or the trend will reverse.
LEONARDO HARMONIC PATTERN
Leonardo patterns are similar to Bat but with slight difference to fibonacci levels.

XA: This could be any move on the chart and there are no specific
requirements for this move in order to be part of a harmonic pattern.

AB: This move is opposite to the XA move and it should be about 50% of
XA.

BC: This move should be opposite to the AB move and it should be 38.2%
or 88.6% of the AB move.

CD: The last price move is opposite to BC and it should be 112.8%

(extension) of BC move if BC is 38.2% of AB. If BC is 88.6% of AB, then CD
should be 261.8% (extension) of BC.

AD: The overall price move between A and D should be 78.6%% of XA.
5-0 PATTERN
The 5-0 pattern is easily one of the wonkiest looking patterns. Depending on
where you are at with your knowledge of harmonic patterns, the 5-0 will look
foreign. And this is primarily because the 5-0 Pattern starts a 0. If you are used
to seeing XABCD, then 0XABCD will undoubtedly look odd.

The pattern begins (begins with 0) at the beginning of an extended

price move.
After 0 has been established, an impulse reversal at X, A, and B
must possess a 113 – 161.8% extension.
The projection off of AB has a 161.8% extension requirement to C. C
can move beyond the 161.8% extension but not beyond 224%.
D is the 50% retracement of BC and is equal to AB (a Reciprocal
AB=CD Pattern).
The reciprocal AB=CD is required.
 BULLISH SCENARIO:

One of the best ways to interpret this pattern is to view it from an exasperated trader’s point of view. If we take
the Bullish 5-0 Pattern as an example, then we can see why. The AB leg ends with B below X, creating a lower
low. We then get an extended move in time where the BC leg is the most prolonged move with C ending above
A. The movement from B to C may take on the appearance of a bear flag or bearish pennant. C to D shows
intense shorting pressure and a belief among bears that new lows are going to be found. Instead, we get to D –
the 50% retracement of BC. Instead of new lower lows, we get a confirmation swing creating a higher low. That
move will more than likely generate a brand new trend reversal or significant corrective move.

BEARISH SCENARIO:
Bearish 5-0 Pattern the AB leg ends with B above X, creating a higher high. We then get an extended
move in time where the BC leg is the most prolonged move with C ending below A. The movement from B to
C may take on the appearance of a bullish flag or bullish pennant. C to D shows intense buying pressure
and a belief among bulls that new lows are going to be found. Instead, we get to D – the 50% retracement
of BC. Instead of new higher highs, we get a confirmation swing creating a lower high. That move will more
than likely generate a brand new trend reversal or significant corrective move.
AB=CD HARMONIC PATTERN

In an uptrend, the first leg (A-B) is formed as the price rises from A to B.

At point B, the price changes direction and backtracks to form the B-C leg – ideally a 61.8% or 78.6%
retracement of the price increase between points A and B.

The price then continues its original uptrend, forming a C-D leg which should be the same length as the
A-B leg.

At the completion of the pattern (point D), place a sell order and look to profit from a price reversal.

Place your stop loss a few pips above point D.

 Take 50% profit at the point
where the price will have
retraced 61.8% of the distance
between A and D or C and D.
Keep remaining position with TSL
of previous fibonacci level.
Alternatively, few traders also
target 100% of CD leg as
projected in live example below.
SEA PONY & SEA HORSE
HARMONIC PATTERN

Sea Pony and Sea Horse pattern are similar

to ABCD pattern except :

AC is .382-.50 instead of .618 in case ABCD

BD is 1.618-2.618 instead of 1.272 in case of ABCD
PARTIZAN
Bullish Partizan is similar to Sea pony but difference is:

AC retracement that is maximum to .382 only and BD is maximum to

1.618.

Partizan target is high of C which is represented by DE and point F is

next target. DE = EF is important observation that makes the pattern
unique.

Bearish Partizan is similar to Sea pony but difference is of AC

retracement that is maximum to .382 only and BD is maximum to 1.618.
Partizan target is low of C which is represented by DE and point F is
next target. DE = EF is important observation that makes the pattern
unique.
NEN STAR PATTERN
The Nen Star Pattern is sometimes confused with the traditional Bat pattern, but there are
some important differences in their respective retracement structures

Drawn from the initial X point, price travels to point A in its first impulse move (this move defines
the needed price retracements that follow).

Prices then retrace in a corrective fashion back to point B.

Prices then extend further in the original impulse direction, to point B. This move will equal 113% to
141.4% of the initial impulse move.

Volatility then increases, as prices reverse correctively to point D. This move will be roughly equal
to 127.2% of the initial impulse move (XA). This retracement also separates the pattern from the
Cypher structure. The final move will also mark 127.2% to 200% of move AB.
In case it is not clear, here is a chart comparing a bearish Cypher with a
bearish Nen Star so you can see the difference between the two patterns:
WHITE SWAN BULLISH
A White Swan event is metaphorically used to explain an event that occurs unexpectedly. The
White Swan(Black Swan Bullish) harmonic pattern name is given due the sudden increase that
comes when this pattern forms.

AB is 138.2-200% of XA.

BC is 23.6-50% of AB.

CD is 112.8-200% of BC.

Total Length is 112.8-261.8%.

Buy at point D with SL just below D for higher

targets.
BLACK SWAN BEARISH PATTERN
Drawn from the initial X point, price
travels to point A in its first move.

AB is 138.2-200% of XA.

BC is 23.6-50% of AB.

CD is 112.8-200% of BC.

Total Length is 112.8-261.8%.

Sell at point D with SL just above D for

lower targets.
THREE DRIVE HARMONIC PATTERN
The three drives pattern is therefore a powerful chart pattern that is both qualitative and
quantitative. The pattern is known as a harmonic pattern and also finds being mentioned in
the Elliott Wave Principle.
WHAT IS THE BULLISH 3-DRIVE PATTERN?

The Bullish 3-Drive Pattern (3-drives to a bottom)

Rare pattern where price and time symmetry are key
Should be easily identified, or “jump out” at you
Formed by 3 consecutive symmetrical valleys
Contains two connecting (intertwined) bullish ABCD patterns

PARAMETERS OF 3- DRIVE PATTERN

Point A is at the 61.8% retracement of the drive 1.

Point B is at the 61.8% retracement of the drive 2.
Drive 2 is at the 127.2%-161.8% extension of A.
Drive 3 is at the 127.2%-161.8% extension of B.
HOW TO TRADE THREE DRIVES PATTERNS

You can trade the drive 3. Enter the

market when you are sure that the
market has formed the point B (buy
in a bearish Three-Drive and sell in a
bullish Three Drive). Take Profit
should be around the 127.2%-161.8%
extension of B.

You can trade when the entire

pattern is complete. Enter the
market at the 127.2%-161.8%
extension of B (sell in a bearish
Three-Drive and buy in a bullish
Three Drive). Take Profit can be put
at the 61.8% Fibonacci retracement
of the entire pattern.
HARMONIC LIST ( FULL VERSION)
HARMONIC LIST ( FULL VERSION)
HARMONIC LIST ( FULL VERSION)
HARMONIC LIST ( FULL VERSION)
SETTING TAKE PROFITS AND ADJUSTING THE STOP LOSS FOR
HARMONIC PATTERNS

The 1st target is associated with point-B on the harmonics chart. This indicates the
drop in price at the time of a decrease in AB.

The 2nd target is point-C and there is an increase in the price post the increase in
BC.

The 3rd target is related to increased price that appears owing to an increase of
XA.

The 4th target is represented by 1.618 level of extension or retracement.

Stoploss above or below X leg. Depends on the pattern

Always take a partial profit then set your stoploss on entry point.
SETTING TAKE PROFITS AND ADJUSTING THE STOP LOSS FOR
HARMONIC PATTERNS

BEST CONFLUENCE FOR

HARMONIC PATTERN:

Divergence

Reversal Candlesticks

SMC, Price Action with secrets of Market Structure

Indicator like RSI, Moving Averages, MACD

Because the more confluence you have,

the higher the probability of your trade.
TRADING JASMY USING HARMONIC PATTERN WITH THE HELP OF INDICATORS:

JASMY forming bearish harmonic bat on H1

timeframe.
Rules of Harmonic Bat Pattern:

XA: No specific requirement

AB: 38.2 or 50.0% of XA.
BC: 38.2% or 88.6% of the AB move.
AD: The overall price move between A and D
should be 88.6%% of XA.
Confluence: Hidden bearish divergence, RSI above 70
(overbought) and crossover of Ma20,MA50
Crossover of MA20, MA50:

MA20,MA50 ginamit ko since pwede sila sa medium term

outlook movement ng coin. Kung gagamit tayo ng MA200
masyadong mabagal, if MA5,MA9 or MA2 naman masyadong
volatile yung moving average,

RSI:
Base sa textbook if RSI goes above 70 it's time to sell pero
hindi lagi nasusunod ito. But we can dim it as over bought or
meron chance na mag karoon na ng reversal, plus the help of
bearish divergence.
TRADING ETHEREUM WITH BEARISH GARTLEY
NICOLE
ICARUS
DISCIPLINE | PLANNING | EXECUTION
BASIC AND ADVANCE HARMONIC TRADING