A harmonic chart pattern framework where five specific price points labelled X, A, B, C, and D form a geometric structure based on Fibonacci ratios. XABCD patterns include the Gartley, Butterfly, Bat, Crab, and Cypher patterns, each defined by exact Fibonacci relationships between the swing legs. Traders use these patterns to identify potential reversal zones (PRZs) at the D completion point, where multiple Fibonacci levels converge to suggest a high-probability trade entry.
Example
“The trader identified a bullish Gartley XABCD pattern where the D point completed at the 78.6% retracement of XA, entering a long position at the potential reversal zone with a tight stop below X.”