Classic Bearish Crab Pattern on GBP/USD and Bullish Deep Crab Pattern on USD/CAD

Since most trades have run and while I monitor for a setup to form, I thought it would be nice to recap on the 2 nice moves made on 2 currency pairs on Friday last week.


The first would have been the GBP/USD which formed a bearish Crab pattern after which a nice reversal occurred. An interesting to note as seen on the RSI (Relative Strength Index), price took a nose dive after the RSI corrected a bit and headed south there.

The second in place would have been the USD/CAD which happened to be a trade I missed out as I was trading the USD/JPY.

As can be seen in the attached charts, once a nice reversal is in play after the completion of the harmonic pattern, the reversals will share the following characteristics:

1. A strong decisive move in the direction of the reversal.
2. A steep trend line.
3. No sideways movement of price action.

Then again, these are one of the "home run" trades which we will catch, but this does not mean that we will expect every trade triggered after a harmonic pattern completion will give us such results every time.