Deep crab model

Deep crab model elements

• Point B at 0.886 with (+5% tolerance)
• Enter AB=CD – AB=CD – 1.618 AB=CD
• D correction of BC at 2.0 – 3.618
• D correction of XA at ​​1.618
• Stop Loss > 2.0 XA (based on AB=CD)

Explanation of the elements of the deep crab model

1. Correction of point B of leg XA at 0.886
2. Correction of point C of leg AB at 0.382, 0.5, 0.618, 0.786, 0.886
3. Correction of point D of leg XA at 1,618
4. Correction of point D of the page BC at 2, 2.24, 2.618, 3, 3.14, 3.618

Deep Crab model notes

• The correction of point B of the XA section at 0.886 is the minimum to activate the pattern with a tolerance of +5%.
• Use the retracement of point D of the XA section at 2 as the measure of your stop loss.
• Expect a test of the potential reversal zone (PRZ) on the correction of point D of the XA leg at 1.618
• Price action should reverse immediately after crossing the general retracement zone of 1.618 (correction of point D of XA section at 1.618).

Special case Crab Crab and Deep Crab Scale 1.902XA

1.902 is an additional measure that first appeared in Bryce Gilmore’s book Market Geometry (Traders Press 1989). It has been found to work very well in extension patterns like the crab that were seeing heavy price action at the time of completion. It is an effective supplemental tolerance measure in certain cases.

1.902XA crab and deep crab pattern elements

• Point B for crab at 0.382-0.618 and for deep crab at 0.886 with (+5% tolerance)
• Enter AB=CD – AB=CD – 1.618 AB=CD
• D correction of BC at 2.0 – 3.618
• D correction of XA at ​​1.618 – 1.902
• Stop Loss > 2.0 XA (depends on XA in case of 1.618-1.902)

Buy Crab Model XA 1.902

Due to the extremes of this type of structure, it is common to see extreme price moves when the pattern completes. The key is to watch price action as all numbers are tested for harmonic support and include the 1.902 scale as an additional tolerance level beyond 1.618

Sell ​​crab model XA 1.902

The 1.902 scale increases the acceptable tolerance for extreme price moves, especially when reversals test the 2.0 stop loss. It is important to remember that stop-loss orders are placed outside of these levels. Therefore, it is necessary to evaluate the price action when the pattern completes to assess the validity of this additional variance beyond the ideal completion point.

Lesson 7: Pattern AB=CD نموذج
Lesson 8: The Gartley Model
Lesson 9: Bat Model
Lesson 10: Alternative bat
Lesson 11: The Cancer Model
Lesson 12: Deep Crab
Lesson 13: Butterfly Patterns