“ The Deep Crab pattern evolved from two patterns (invalid Bat patterns and a specific type of Crab pattern). It was developed by Scott Carney as a further refinement of the basic structure.
The Deep Crab is similar to the original Crab pattern, as it is a 5-point extension structure that utilizes exclusively a 161.8% XA projection for the defining level in the Potential Reversal Zone (PRZ).The difference can be found at the B point which must be an 88.6% XA retracement. In fact, the Deep Crab pattern usually possesses a B point that is beyond the 88.6% level but does not violate the initial point X.
The 88.6% B point requirement is special to the Deep Crab. When the structure is in the midst of completing the CD leg, the violation of the B point AND the X point typically creates a situation of severe price action. In essence, the price action is violating two important prior support or resistance points. When this happens, the result is frequently a sharp move that quickly extends to the 161.8% XA projection.
Another difference in the Deep Crab pattern is the AB=CD structure. The AB=CD pattern is a more important consideration in the Deep Crab, although the structure typically possesses the 127%AB=CD alternate variation it is common for these structures to possess equivalent AB=CD patterns in certain circumstances. ”
The Deep Crab is similar to the original Crab pattern, as it is a 5-point extension structure that utilizes exclusively a 161.8% XA projection for the defining level in the Potential Reversal Zone (PRZ).The difference can be found at the B point which must be an 88.6% XA retracement. In fact, the Deep Crab pattern usually possesses a B point that is beyond the 88.6% level but does not violate the initial point X.
The 88.6% B point requirement is special to the Deep Crab. When the structure is in the midst of completing the CD leg, the violation of the B point AND the X point typically creates a situation of severe price action. In essence, the price action is violating two important prior support or resistance points. When this happens, the result is frequently a sharp move that quickly extends to the 161.8% XA projection.
Another difference in the Deep Crab pattern is the AB=CD structure. The AB=CD pattern is a more important consideration in the Deep Crab, although the structure typically possesses the 127%AB=CD alternate variation it is common for these structures to possess equivalent AB=CD patterns in certain circumstances. ”
Trade closed manually:
As outlined by Scott Carney price should be volatile within the PRZ of the Deep Crab pattern.
Due to a lack of volatility I must assume Bears have absorbed all Bullish pressure created by the pattern. Therefore, I have begun the process of scaling out of my position at each retracement to the bearish move down.
Due to a lack of volatility I must assume Bears have absorbed all Bullish pressure created by the pattern. Therefore, I have begun the process of scaling out of my position at each retracement to the bearish move down.
Comment:
Having scaled out of the position completely I will now turn my attention to Bearish Entries.
