Show/Hide Toolbars

Harmonic Pattern Collection for eSignal

Navigation: Patterns

5-0

Scroll Prev Top Next More

The 5-0 Pattern is a unique structure that possesses a precise alignment of Fibonacci ratios to validate the pattern.  Although the 5-0 is considered a retracement pattern, as the 50% retracement is the most critical number within the Potential Reversal Zone, the measurements of the various price legs are slightly different than the Bat or the Gartley.

 

The 5-0 is within the family of 5-point harmonic reversal structures and is primarily defined by the structure’s B point – as is mandatory for all harmonic patterns.  However, the 5-0 requires a reciprocal AB=CD measurement to define the pattern’s completion. The basic premise of the pattern is to identify distinct reactions following the completion of a contrary trend. Valid 5-0 patterns typically represent the first pullback of a significant trend reversal.  In many instances, the AB leg of the structure is a failed final wave of an extended trend.

 

bullish50_zoom80 bearish50_zoom80

 

The 5-0 pattern can be toggled on or off by checking/unchecking the Show 5-0? checkbox in the parameters dialog. All 5-0 patterns start out as Shark patterns, but not all Shark patterns will evolve into a 5-0 pattern.

 

Here are some example 5-0 patterns found in eSignal:

 

50_confirmed_bullish1_zoom30

50_confirmed_bearish2_zoom30

 

The Terminal Bar is the price bar that reaches the minimum pattern completion requirements and will always be identified by the symbol. You can adjust the size via the Terminal Bar Font Size option in Settings.

 


See Also:

 

Settings

Shark

Pattern Filters

Zone Lines

© 2023 HarmonicTrader.com & Divergence Software, Inc.