Discussing the article: "Automating Trading Strategies in MQL5 (Part 27): Creating a Price Action Crab Harmonic Pattern with Visual Feedback"

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Check out the new article: Automating Trading Strategies in MQL5 (Part 27): Creating a Price Action Crab Harmonic Pattern with Visual Feedback.

In this article, we develop a Crab Harmonic Pattern system in MQL5 that identifies bullish and bearish Crab harmonic patterns using pivot points and Fibonacci ratios, triggering trades with precise entry, stop loss, and take-profit levels. We incorporate visual feedback through chart objects like triangles and trendlines to display the XABCD pattern structure and trade levels.

Bullish Crab Harmonic Pattern:

Bearish Crab Harmonic Pattern:

To identify the patterns, below is our structured approach:

• Defining the XA Leg: The initial impulsive move from point X to point A establishes the pattern's foundation, determining the direction (downward for bullish, upward for bearish) and serving as the reference for Fibonacci calculations.
• Establishing the AB Leg: Point B should retrace approximately 0.618 of the XA leg, confirming a correction without reversing the initial move too aggressively.
• Analyzing the BC Leg: This leg should extend between 0.382 and 0.886 of the AB leg, creating a sharp counter-move that sets up the final extension.
• Setting the CD Leg: The final leg should extend 1.618 of the XA leg, marking the potential reversal zone at point D, where the pattern completes and a trade signal is generated.

Author: Allan Munene Mutiiria