Stock Market Pedia - Blog: Capital Market Chronicles – Episode 274: TECHNICAL ANALYSIS

🌟 Capital Market Chronicles – Episode 274: TECHNICAL ANALYSIS – HARMONIC PATTERNS (Part IV) 📐📊

“The deeper the retracement, the sharper the reversal.” 🦀📉

Welcome to advanced harmonic territory —

where patterns get deeper, emotions get louder, and mistakes get expensive 😅.

These formations usually appear after strong trends, when price stretches too far and traders start confusing momentum with immortality.

The Butterfly pattern is designed to spot trend exhaustion.

📌 Key Feature:
👉 Point D extends beyond point X

Translation:
Price overshoots.
Late buyers panic-buy.
Early sellers get greedy.
And then… reality shows up uninvited 🚪📉.

This pattern is especially useful for:

✔ Exhaustion trades
✔ Counter-trend setups
✔ Fast, sharp reversals

But remember — butterflies look beautiful 🦋
until they trap impatient traders 😄.

The Crab pattern is famous (and feared) for its accuracy.

📌 Key Highlight:
👉 Point D ≈ 161.8% extension of XA

This deep extension signals extreme price stretch — often right before a violent reversal.

Why traders respect the Crab:

✔ Tight and logical stop-loss placement 🛑
✔ High reward-to-risk potential 🎯
✔ Explosive reversals when the structure is correct 💥

Miss the ratio though…
and the Crab pinches back 🦀😬.

The Deep Crab takes everything the Crab does…
and pushes it further.

📌 Key Feature:
👉 B ≈ 88.6% retracement of XA

This pattern basically whispers (sometimes shouts):
🗣️ “The trend is tired… but it’s not done hurting traders yet.”

Accuracy here is non-negotiable.
A sloppy Deep Crab is not a setup — it’s a lesson 😅.

Advanced harmonic patterns reward discipline and patience —
and punish hope, haste, and “close enough” thinking.

Respect the ratios.
Wait for completion.
Let price come to you.

📖 Next Episode:
How to actually trade harmonics — without worshipping them 🙏📊

⚠️ Disclaimer: This Blog is for general guidance only and does not replace personalised financial advice.

🌐 Stay tuned to Our Blog https://www.stockmarketpedia.in/home/blog — where we decode the stock market one laugh at a time. 😎💰

📖 Craving deeper dives and serious know-how (minus the financial snoozefest)? Surf over to: https://www.stockmarketpedia.in/

📚 Prefer your reading with chai in one hand and market wisdom in the other? Now available on Amazon Kindle

Stock Market Decoded - A Beginner's Guide to Smart Investing by P. Shirley — perfect for sounding smarter than your portfolio at dinner parties.
Money Money Money – Tickling You into an Investing Habit by P. Shirley — the nudge your lazy rupees have been waiting for.

Want to open an account with Mirae Asset Sharekhan?

Got burning questions about bulls, bears, or bizarre market behaviour?

WhatsApp: 8300840449

Stock Market Pedia - Blog