The deep crab is a variation of the normal crab pattern. It is still a 5-point extension, and it still has the endpoint, D, at the 161.8 percent extension of XA, but the little difference is in the AB=CD importance.
The most distinguishing component of this pattern is the importance of the particular 88.6 percent retracement point of B. Together with the crab pattern; the deep crab pattern presents an especially extended and long move towards D.
It can be hard to be familiar with the Fibonacci retracement and extension values in a crab pattern. Also, it can become tiring when using the Fibonacci tool to measure each leg while drawing the crab pattern.
Aside from the main rules of the crab pattern, traders can look for the following signs in the market, by analyzing the lows and highs and simply observing the price movement.
Just like the butterfly, it can help traders identify when a current price move is likely getting to its end. This means traders can enter the market just as the price changes direction in the opposite way.
The crab and deep crab represent important overbought and oversold conditions, and reaction after completion is mostly sharp and fast. It is the opinion of many analysts and traders that the crab pattern and deep crab represent some of the quickest and most profitable patterns out of all harmonic patterns.
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