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发表于 2020-4-18 01:09 PM
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5-0 pattern
Although the pattern incorporates 5 points within the structure (X, A, B, C, D), the starting point of the structure (0) can be the beginning of any extended price move. However, the initial point X must possess a specific alignment with respect to the A and B point. The X, A, B formation of the structure is usually some type of impulse move. The XA projection that defines the B point ideally must not exceed a 1.618. Any extension greater than a 1.618 will negate the structure, as smaller impulse moves are preferred. The BC leg is the longest price length of the structure and must be at least a 1.618 extension of the AB length but it must not exceed 2.24. This tight range of 1.618-2.24 is a defining element of the structure. If the 1.618 minimum limit is not reached, the structure is not a valid 5-0. After the BC leg has reversed from that zone, the 50% retracement is measured from the B point to the C point. In addition, the Reciprocal AB=CD is projected from the C point (an equivalent length of the AB leg) to compliment the Potential Reversal Zone (PRZ). Although the 5-0 pattern is not a typical M or W-type price structure, the same principles within the Harmonic Trading approach are applied to these situations. The Reciprocal AB=CD helps define the general area, while the 50% retracement pinpoints the precise range of the harmonic zone. The following illustrations and examples will clearly explain these concepts.”
The 5-0 pattern®, was discovered by Scott Carney and released in his book, Harmonic Trading of the Financial Markets: Volume Two.
Is a unique structure that possesses a precise alignment of Fibonacci ratios to validate the pattern. Although the 5-0 pattern® is considered a retracement pattern, as the 50% retracement is the most critical number within the Potential Reversal Zone, the measurements of the various price legs are slightly different than the Bat pattern™ or the Gartley™.
The 5-0 is within the family of 5-point harmonic reversal structures and is primarily defined by the structure’s B point – as is mandatory for all harmonic patterns™. However, the 5-0 pattern® requires a reciprocal AB=CD measurement to define the pattern’s completion.
The basic premise of the pattern is to identify distinct reactions following the completion of a contrary trend. Valid 5-0 patterns® typically represent the first pullback of a significant trend reversal. In many instances, the AB leg of the structure is a failed final wave of an extended trend.
The 5-0 is an incredibly precise pattern that possesses only two numbers – the 50% retracement of the BC leg and the Reciprocal AB=CD Pattern™. |
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