Apex VIP FVG$69.99/mo Apex VIP Quant$69.99/mo Full Pack$99.99/mo
Results Brokers Prop Firms Crypto Exchanges
Education Master Quiz Trading Journal Lot Calculator Discounts FAQ
INSTRUMENTS
EUR/USD FVG GBP/USD FVG USD/JPY FVG XAU/USD FVG
Free Telegram Channel
26 Lesson 26 of 62 · Advanced methods

HARMONIC PATTERNS.

Education Advanced methods ~19 min read Updated 29 September 2026
The short answer

Harmonic patterns are Fibonacci ratios arranged into named shapes. Each pattern has four legs (X-A, A-B, B-C, C-D) and a D point where price is expected to reverse. The four main patterns — Gartley, Bat, Butterfly and Crab — differ only in where D lands relative to the XA leg. The zone around D is called the PRZ. That is where you look for the trade.

Why harmonic patterns earn their place

Harmonic patterns are not magic. They are a way of defining a specific price level in advance — and then waiting for the market to come to it. That is their real value. Most traders enter too early. Harmonics force you to define the level before price arrives.

The ratios are precise. Bat and Gartley differ by 0.1 on one Fibonacci level. That precision is what separates a real harmonic setup from a chart that simply looks pattern-ish. If the ratios do not match, it is not the pattern.

T
Written by the Trade To The Top team|Reviewed 29 September 2026
Harmonic pattern ratios cross-checked against Harmonic Trading, Volume One (Carney), The Harmonic Trader (Carney), the original H.M. Gartley work in Profits in the Stock Market (1935), and the harmonic pattern detection rules used by TradingView's built-in Harmonic Patterns tool. Gartley 222 ratios verified against the classical published definition. Shark and Cypher patterns noted as later extensions.

A harmonic pattern is a shape defined by ratios. Not a feeling. Not a chart that "looks like it should turn". If the ratios match, you have a pattern. If they do not, you have noise. This is the entire appeal of the method — and the reason it fails when traders eyeball the shape and skip the maths.

Key takeaways
In this lesson
Prerequisite Read Lesson 16 — Fibonacci retracement & extension and Lesson 21 — Optimal Trade Entry first. This lesson sits on top of both.

What harmonic patterns actually are

A harmonic pattern is a specific five-point shape defined by Fibonacci ratios. Point X is where the pattern begins. Point D is where it ends — and D is where the market is expected to reverse.

Every harmonic pattern has the same skeleton:

The ratios that define AB, BC and CD are what make the pattern. Every harmonic pattern is a specific set of these four ratios. Change any one of them and you have a different pattern — or no pattern at all.

Common mistake

Drawing a harmonic shape by eye. The ratios are the pattern. A Gartley has a B at 0.618 of XA and a D at 0.786. A Bat has a B at 0.382–0.5 and a D at 0.886. If your "Gartley" has a B at 0.45, it is not a Gartley — it is closer to a Bat with a misplaced D. And if the D does not land within a few pips of 0.786 (for a Gartley), it is not a Gartley at all.

The XABCD structure

Every harmonic pattern is drawn as a five-point zigzag. In a bullish setup, X is a low, A is a high, B is a lower low, C is a high, D is the deepest low. In a bearish setup, the whole thing is mirrored.

The labels are not arbitrary. X is the anchor. A is the first impulse high. B is the first pullback. C is the reaction. D is the target. Every ratio in the pattern is measured from these five points.

THE XABCD STRUCTURE · EVERY HARMONIC PATTERN IS THE SAME SKELETON
Bullish variant · X low, A high, B low, C high, D low · the reversal point is D
X A B C D XA AB BC CD FIVE POINTS · FOUR LEGS · ONE REVERSAL ZONE AROUND D
Every harmonic pattern has this skeleton. The ratios that define the legs are what distinguish Gartley from Bat from Butterfly from Crab.

The four patterns

Four patterns are the standard harmonic set. They all share the same skeleton but differ in three places:

GARTLEY · B = 0.618, D = 0.786 OF XA
The classic. D sits above the X point at 0.786 of XA
A X 0.786 0.618 X A B C D B = 0.618 D = 0.786 GARTLEY · B = 0.618 · C = 0.382–0.886 OF AB · D = 0.786 OF XA
The Gartley is the original. B at 0.618 of XA. D at 0.786 of XA. Also requires AB = CD and a BC projection of 1.27–1.618.
BAT · B = 0.382–0.5, D = 0.886 OF XA
Deeper D than the Gartley. Sharper reversal point.
A X 0.886 0.5 X A B C D B = 0.382–0.5 D = 0.886 BAT · B = 0.382–0.5 · C = 0.382–0.886 OF AB · D = 0.886 OF XA
The Bat is shallower at B and deeper at D. D sits at 0.886 of XA, giving a tighter stop than the Gartley.
BUTTERFLY · B = 0.786, D = 1.27 EXTENSION OF XA
D pushes beyond X. The reversal happens on the extension, not the retracement.
A X 1.27 0.786 X A B C D B = 0.786 D = 1.27 BUTTERFLY · B = 0.786 · C = 0.382–0.886 OF AB · D = 1.27 OR 1.618 EXTENSION OF XA
The Butterfly pushes D beyond X. D is an extension, not a retracement. The reversal happens at a new extreme.
CRAB · B = 0.382–0.618, D = 1.618 EXTENSION OF XA
The deepest D. The Crab reverses at a sharp extension beyond X.
A X 1.618 0.5 X A B C D B = 0.382–0.618 D = 1.618 CRAB · B = 0.382–0.618 · C = 0.382–0.886 OF AB · D = 1.618 EXTENSION OF XA
The Crab is the deepest. D at 1.618 of XA — the reversal happens at an extreme overshoot. Tightest stop, hardest to hold.

The PRZ — where you actually enter

The PRZ (Potential Reversal Zone) is the region around the D point where the pattern completes. It is a zone, not a line. The reason is simple: no ratio lands at exactly the same price across every broker and every measurement.

The PRZ is built from confluence of several ratios:

Where these ratios converge, the PRZ has more weight. Where they are widely spread, the pattern is weaker. The tighter the PRZ, the better the setup.

WHERE D LANDS · THE FOUR PATTERNS COMPARED
The D point relative to XA · retracement vs extension
A · 0% 0.786 GARTLEY D = 0.786 0.886 BAT D = 0.886 X · 100% 1.27 BUTTERFLY D = 1.27 1.618 CRAB D = 1.618 RETRACEMENT D stays above X EXTENSION D goes below X THE FOUR PATTERNS DIFFER ONLY IN WHERE D LANDS RELATIVE TO XA
Same skeleton. Four different D points. Gartley and Bat are retracements. Butterfly and Crab are extensions.
Harmonic patterns are not magic. They are Fibonacci ratios with a name.

How to trade a harmonic pattern

The steps are mechanical. The temptation is to skip them.

The five-step harmonic trade
01
Identify the swing structure. Find X, A, B and C. Do not force the labels. If the structure is not clean, there is no pattern. Clean swings first. Ratios second.
02
Check B and C against the pattern ratios. B must land in the correct band (0.618 for Gartley, 0.382–0.5 for Bat, 0.786 for Butterfly, 0.382–0.618 for Crab). C must be a valid retracement of AB. Wrong B, wrong pattern.
03
Project the D point. The D ratio (0.786, 0.886, 1.27 or 1.618) tells you where price should reverse. That is the primary PRZ. Overlay the BC projection and AB = CD completion. Where the ratios converge, the PRZ is strong.
04
Wait for price to reach the PRZ and react. Do not place a limit order at D and hope. Wait for a reversal candle, a structure shift on a lower timeframe, or a bullish/bearish engulfing. Reaction first. Entry second.
05
Stop beyond X. Target the C point or the 0.382 / 0.618 retracement of CD. The stop goes just beyond the extreme that would invalidate the pattern — which for a bullish setup is below X (for retracement patterns) or below D (for extension patterns). Target 1 is the C point. Target 2 is the 0.618 retracement of the CD leg. Defined stop, defined target.
A BULLISH GARTLEY COMPLETING · CANDLESTICK VIEW
Eighteen candles · CD leg into D · pin bar reversal inside the PRZ
A bullish Gartley completing — the XABCD legs with the D point at 0.786 of XA and a pin bar reversal inside the PRZTwenty-six bars of EURUSD 4H. X is the swing low, A the high, B retraces 0.618 of XA, C rallies into the AB leg, and D completes at 0.786 of XA where a pin bar reverses inside the potential reversal zone.1.08501.08751.09001.0925EURUSD · H424 BARS0.618 OF XA — BPRZ — 0.786 OF XAXABCDPIN BAR REVERSAL
The PRZ is where the pattern completes. The pin bar inside the PRZ is the entry trigger. Stop below the pin bar low. Target at the C point.
Worked example — the same Gartley, two outcomes
X
1.0800
A
1.0900
XA range
100 pips
B = 0.618 of XA
1.0838
D = 0.786 of XA
1.0821
Entry (break of pin bar high)
1.0826
Stop
1.0810
Target 1 (C point)
1.0864
Target 2 (0.618 of CD)
1.0881
Risk
16 pips
Reward (to T2)
55 pips
R:R
3.44 : 1
Scenario A — Daily trend up. PRZ overlaps an H1 order block.
Pin bar at 1.0821. Break of its high at 1.0826. Target 2 hit.
Result: +55 pips, 3.44R winner.

Scenario B — Daily trend down. PRZ sits in open air.
Same Gartley. Same entry at 1.0826. Same stop. Price breaks through the PRZ and continues lower.
Result: −16 pips, 1R loser. SAME PATTERN. DIFFERENT CONFLUENCE. DIFFERENT OUTCOME.

Confluence — what makes a pattern worth it

A harmonic pattern on its own is a coin flip. A harmonic pattern with confluence is a trade. The strongest PRZs have at least two of the following inside them:

ConfluenceWhat it meansWhy it matters
Order blockAn unmitigated order block sits in the PRZ.Institutional activity overlaps the pattern's reversal point.
Fair value gapAn FVG from the CD leg falls inside the PRZ.The FVG reinforces the reaction at D.
OTE zoneThe PRZ overlaps the 0.62–0.79 retracement of a larger impulse.Two Fibonacci frameworks pointing at the same price.
Higher-timeframe levelDaily or H4 support/resistance sits at the PRZ.Multiple timeframes agree.
Round numberA psychological level (1.0800, 1.0850) coincides with the PRZ.Liquidity clusters here. Reactions are sharper.
Liquidity sweepPrice sweeps a prior swing just before reaching D.Stop hunt done. Cleaner path for the reversal.
A pattern without confluence is a Fibonacci level with a name. Add confluence and it becomes a trade.

When this fails

Harmonic patterns fail in four predictable situations:

When this fails
  1. Rough ratio approximation. A "Gartley" whose B sits at 0.5 and D at 0.85 is not a Gartley. It is a mislabelled pattern. The ratios must be tight. Allow 3–5% tolerance, not 20%.
  2. Counter-trend patterns in strong trends. A bullish Gartley inside a daily downtrend will fail more often than it works. Confluence with the higher timeframe matters more than the pattern itself.
  3. Trading D without confirmation. The pattern completing is not the signal. The reversal at D is the signal. Wait for the reaction candle before entering.
  4. Oversized positions because "the pattern is clean". No pattern is clean enough to justify risking more than your standard 1%. Size is decided by the stop distance, not the pattern quality.

If you remember nothing else: the pattern defines where to look. Structure and confluence define whether to trade.

Common mistake

Marking every zigzag as a harmonic pattern. The ratios are what make it a pattern. If you are not measuring B, C and D as Fibonacci retracements and extensions, you are drawing shapes. The whole appeal of harmonics is that the ratios are objective. Do not throw away the objectivity.

Ratio cheat sheet

PatternB (of XA)C (of AB)D (of XA)BC projection
Gartley0.6180.382–0.8860.786 retracement1.27–1.618
Bat0.382–0.500.382–0.8860.886 retracement1.618–2.618
Butterfly0.7860.382–0.8861.27 or 1.618 extension1.618–2.24
Crab0.382–0.6180.382–0.8861.618 extension2.618–3.618
Shark0.382–0.618 (of OX)1.13–1.618 (of AB)0.886 (of OX, retracement)Different structure
Cypher0.382–0.6181.13–1.414 extension0.786 of XCDifferent reference

Gartley and Bat complete on retracements. Butterfly and Crab complete on extensions. Shark and Cypher are later additions that use different reference legs (OX for Shark, XC for Cypher). Trade the four classical patterns first. Add Shark and Cypher only after the classical set is second nature.

Practical application

Four adjustments to make harmonics work in a real account:

Making harmonics practical
01
Trade H4 and above. Patterns on M15 and M5 are noisy. The ratios do not hold up. Higher timeframe, better signal.
02
Log every pattern, even the losers. Track which patterns work in which markets. Gartley may work well on EURUSD and poorly on GBPJPY. The journal is the meta-analysis.
03
Require confluence for entry. No confluence, no trade. Two of the six confluence factors from the table above. That filter alone improves results dramatically.
04
Use limit orders at the PRZ. Not market orders after the reaction. The PRZ is a defined level. Place a limit at the D ratio. If it does not fill, skip the trade. Maker, not taker.
In one box
Log every pattern in R. Our free trading journal lets you tag entries by pattern type — Gartley, Bat, Butterfly, Crab — so you can see which patterns actually work in your account, and which ones you should stop trading.
Open journal →
CHECK YOUR UNDERSTANDING
5 questions · immediate feedback · retake any time
Question 01 of 05
What defines a harmonic pattern?
Correct: C. The ratios are what make a harmonic pattern. Without the specific Fibonacci relationships between XA, AB, BC and CD, you are just drawing shapes.
Question 02 of 05
What is the difference between a Gartley and a Bat?
Correct: B. Gartley and Bat share a similar skeleton but differ in the D point. Gartley completes at 0.786 of XA. Bat completes deeper at 0.886 of XA. B also sits at different ratios: 0.618 for Gartley, 0.382–0.5 for Bat.
Question 03 of 05
Which two harmonic patterns complete on an extension of XA rather than a retracement?
Correct: A. Butterfly completes at 1.27 of XA, and Crab completes at 1.618 of XA. Both push D beyond X. Gartley (0.786) and Bat (0.886) complete on retracements — their D stays above X.
Question 04 of 05
What is the PRZ?
Correct: D. The PRZ (Potential Reversal Zone) is a zone — not a line — built from the D ratio of XA, the BC projection, and the AB=CD completion. The tighter the convergence, the stronger the PRZ.
Question 05 of 05
A completed Gartley pattern lands in the middle of open space. No order block, no FVG, no higher-timeframe level. What do you do?
Correct: C. A pattern without confluence is a Fibonacci level with a name. Require at least two confluence factors from the checklist before entering. The best PRZs sit on top of existing structure, not in open space.

⚠︎ RISK WARNING: Trading forex and CFDs carries significant risk. Past performance does not guarantee future results. The published stop-loss does not guarantee profits. Never trade money you cannot afford to lose. Trade To The Top provides signals for informational purposes only — not financial advice. © 2024–2026 TradeToTheTop.com