After identifying the crab pattern, a short position is taken at the low of the price at swing/pivot point D with stops at the high. The targets are 61.8% and 127.2% of the CD leg, which price manages to reach.
Comentário
⋅
Unlike other harmonic patterns, the crab pattern when formed can be very volatile. There are no fixed stop loss levels and therefore a bit of subjectivity is required. Traders usually wait for a high and a low to be formed before placing their stops at or above/below these reversal levels.