Harmonic Patterns: Trading Gartley, Bat, Butterfly and Crab Setups

The XABCD Structure

Harmonic patterns are five-point structures labelled X, A, B, C and D. Each leg must meet specific Fibonacci ratios. When they align, point D becomes a high-probability reversal area.

Bullish Gartley pattern with Fibonacci ratios

The Gartley Pattern

The Gartley is the classic harmonic setup:

B retraces 61.8% of XA
C retraces 38.2% to 88.6% of AB
D completes at 78.6% of XA

The bullish version looks like an "M"; the bearish version looks like a "W".

Bat, Butterfly and Crab

Bat: D at 88.6% of XA, with a shallower B.
Butterfly: D extends beyond X, at 127% of XA.
Crab: the most extreme, with D at 161.8% of XA.

The Potential Reversal Zone

The PRZ is where several Fibonacci measurements cluster around D. Treat it as a zone, not an exact price, and wait for a reaction such as a rejection candle before entering.

Harmonic trade with entry, stop and targets

Managing the Trade

Entry: inside the PRZ after confirmation
Stop: beyond X or the end of the PRZ
Target 1: 38.2% of AD
Target 2: 61.8% of AD

Harmonics work best in ranging or mature trending markets and should be filtered with higher-timeframe structure.

Educational content only. Trading forex involves significant risk and is not suitable for every investor.