What it means
The Crab pattern (Scott Carney, 2001) has the deepest D-point extension of any classic harmonic — CD = 1.618 of XA. AB = 0.382-0.618 of XA; BC = 0.382-0.886 of AB. The extreme D extension provides exceptional risk-reward when reversal triggers, but requires patience for the full pattern to develop (often weeks on daily charts).
Why it matters
Crab patterns produce the highest risk-reward of classic harmonics — small initial risk (tight stop beyond D) with large target potential. However, the strict ratio requirements and time to develop mean fewer setups per year. Best suited for swing/position trading rather than active intraday.
How to use it
Wait for full pattern with CD reaching 1.618 of XA. Enter at D in direction back toward X. Stop just beyond D extreme. Target 0.382, 0.618 retracements of CD — the deeper the CD, the larger the target.
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