XABCD Harmonic Pattern Strategy with Fibonacci Matching and ATR Exits

Summary

This strategy identifies four harmonic price patterns—Gartley, Bat, Butterfly, and Crab—from successive zigzag pivots. It compares measured legs with Fibonacci ratio criteria, allowing a configurable tolerance and requiring a chosen minimum number of ratio checks to match. Pivot length controls how many bars are needed to confirm a swing, while direction settings can restrict trades to longs or shorts.

The script describes a stop placed beyond the pattern’s X pivot with an ATR-based buffer, plus a profit target set by a reward-to-risk input. It also includes an entry cooldown and chart drawings for pivots and patterns. The supplied text gives implementation settings but no market-specific test period, performance results, or evidence that the patterns predict reversals. Pivot confirmation necessarily uses later bars, and the excerpt does not provide enough detail to assess execution assumptions or robustness.

Key ideas

• The strategy searches for Gartley, Bat, Butterfly, and Crab patterns using zigzag pivots.
• Fibonacci ratio tolerance and the minimum number of matching checks control pattern strictness.
• Trade direction, pivot length, and cooldown can be adjusted.
• Stops use an ATR buffer beyond the X pivot, while targets use a configurable reward-to-risk multiple.
• The excerpt provides no backtest results or evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.