ORDERABCD and XABCD Harmonic Patterns
Harmonic patterns describe zig-zag price moves whose legs relate to each other by Fibonacci ratios. They give traders a precise area — not a guarantee — where a move may complete.
The ABCD pattern
ABCD is the simplest harmonic shape: three legs.
- A → B: the first move.
- B → C: a pullback, commonly 0.618 to 0.786 of AB.
- C → D: the final leg, often about equal to AB, or 1.272 to 1.618 of BC.
When the CD leg reaches its projected area, traders watch for a reaction in the opposite direction.
XABCD patterns
XABCD adds a starting point X, giving four legs. Named variants differ by their ratios. Common published guidelines are:
| Pattern | B retraces XA | D retraces XA |
|---|---|---|
| Gartley | about 0.618 | about 0.786 |
| Bat | 0.382 – 0.5 | about 0.886 |
| Butterfly | about 0.786 | 1.27 – 1.618 (beyond X) |
| Crab | 0.382 – 0.618 | about 1.618 (beyond X) |
Different authors publish slightly different ratios; treat them as zones rather than exact numbers.
Drawing them in OrderView
Choose Draw → ABCD pattern (four taps) or XABCD pattern (five taps), and place each point on a swing high or low. OrderView labels the points and writes the ratio of each leg to the one before it, plus the AD/XA ratio for XABCD, so you can compare the pattern with the table above at a glance. Drag any point and the ratios update.
Using the completion zone
The D point is an area of interest, not an entry by itself. Traders usually wait for evidence of a turn there — a rejection candle, a divergence on RSI or MACD, or a break of a short-term structure — and place a stop beyond the zone, because patterns often overshoot.
Common mistakes
- Forcing a pattern onto random swings to make the ratios fit.
- Entering before price actually reaches D.
- Ignoring the larger trend: patterns against a strong trend fail more often.
Educational information only, not investment advice. Harmonic drawing tools are available in the web app and the Android app.