Trading Gartley, Bat, Butterfly, and Crab Patterns with Pivot Ratios
Summary
The strategy identifies four XABCD harmonic patterns from confirmed zigzag pivots: Gartley, Bat, Butterfly, and Crab. It measures the AB-to-XA, BC-to-AB, CD-to-BC, and XD-to-XA ratios against pattern-specific Fibonacci ranges, then assigns a score based on how many checks pass. Users can adjust pivot length, ratio tolerance, enabled patterns, and the minimum number of matching ratios.
When a pattern completes at D, the script labels it bullish or bearish based on the last pivot and can enter in the corresponding direction. It places a stop beyond X with an ATR buffer and sets a target using a configurable reward-to-risk multiple; a cooldown can limit entry frequency. The document gives the rules and parameters but no backtest results or performance evidence. Pivot confirmation requires bars on both sides of a swing, so signals arrive after the turning point, and allowing partial ratio matches makes detections less strict. Results may vary with market, timeframe, and settings.
Key ideas
- The strategy searches the latest five alternating pivots for an XABCD formation.
- It scores four Fibonacci ratios against separate ranges for each enabled pattern.
- A pattern can qualify when the selected minimum number of ratio checks pass.
- Trades follow the expected reversal direction, with an ATR-buffered stop beyond X and a reward-to-risk target.
- Pivot length, ratio tolerance, trade direction, and cooldown are configurable.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.