EducationAdvanced methods~19 min readUpdated 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.
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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
Harmonic patterns are Fibonacci ratios arranged into a specific shape. The ratios define the pattern, not the drawing.
Every harmonic has five points: X, A, B, C, D. D is the reversal point.
Four main patterns: Gartley, Bat, Butterfly, Crab. Shark and Cypher are later additions.
The key difference between them is where D lands relative to XA: 0.786 (Gartley), 0.886 (Bat), 1.27 (Butterfly), 1.618 (Crab).
The zone around D is called the PRZ — the Potential Reversal Zone. Not a line, a zone.
Do not trade the D point blindly. Wait for a reversal candle, a structure shift, or a lower-timeframe confirmation inside the PRZ.
Confluence matters. A pattern that lands on an order block, a fair value gap, or a higher-timeframe level is worth five of the same pattern in isolation.
Harmonics fail. Roughly 40–50% of completed patterns do not produce a reversal. The ratios define the setup, not the outcome.
Fewer signals, better locations. Harmonics force patience. That is their edge.
Combine with structure and OTE. A harmonic that lands inside an OTE zone is one of the strongest confluence setups in technical analysis.
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:
XA — the first leg. Sets the reference for the whole pattern.
AB — the first pullback. Measured as a retracement of XA.
BC — the bounce. Measured as a retracement of AB.
CD — the final leg. Measured as a projection of BC and an extension or retracement of XA.
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
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:
Where B sits relative to XA.
Where C sits relative to AB.
Where D lands relative to XA. This is the defining ratio.
GARTLEY · B = 0.618, D = 0.786 OF XA
The classic. D sits above the X point at 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.
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.
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.
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:
The D ratio of XA (0.786 for Gartley, 0.886 for Bat, etc.)
The BC projection (1.27–1.618 for Gartley, 1.618–2.618 for Bat, 2.618–3.618 for Crab)
The AB = CD completion, or an extension of it
Any prior structural level that happens to sit there
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
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
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:
Confluence
What it means
Why it matters
Order block
An unmitigated order block sits in the PRZ.
Institutional activity overlaps the pattern's reversal point.
Fair value gap
An FVG from the CD leg falls inside the PRZ.
The FVG reinforces the reaction at D.
OTE zone
The PRZ overlaps the 0.62–0.79 retracement of a larger impulse.
Two Fibonacci frameworks pointing at the same price.
Higher-timeframe level
Daily or H4 support/resistance sits at the PRZ.
Multiple timeframes agree.
Round number
A psychological level (1.0800, 1.0850) coincides with the PRZ.
Liquidity clusters here. Reactions are sharper.
Liquidity sweep
Price 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
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%.
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.
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.
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
Pattern
B (of XA)
C (of AB)
D (of XA)
BC projection
Gartley
0.618
0.382–0.886
0.786 retracement
1.27–1.618
Bat
0.382–0.50
0.382–0.886
0.886 retracement
1.618–2.618
Butterfly
0.786
0.382–0.886
1.27 or 1.618 extension
1.618–2.24
Crab
0.382–0.618
0.382–0.886
1.618 extension
2.618–3.618
Shark
0.382–0.618 (of OX)
1.13–1.618 (of AB)
0.886 (of OX, retracement)
Different structure
Cypher
0.382–0.618
1.13–1.414 extension
0.786 of XC
Different 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
Harmonic patterns are Fibonacci ratios arranged into a shape. Five points: X-A-B-C-D.
Four main patterns. Gartley (0.786), Bat (0.886), Butterfly (1.27), Crab (1.618).
D is the reversal point. Gartley and Bat are retracements. Butterfly and Crab are extensions.
The PRZ is a zone, not a line. Built from D ratio + BC projection + AB=CD.
Ratios must be tight. 3–5% tolerance. Not "looks close enough."
Wait for the reversal candle at D. The pattern completing is not the signal. The reaction is.
Stop goes beyond X (retracement patterns) or beyond D (extension patterns).
Trade H4 and above. Lower timeframes produce noise, not patterns.
Size by stop distance, not pattern quality. 1% risk per trade. Always.
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.
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.