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 pattern® 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. The 5-0 is an incredibly precise pattern that possesses only two numbers – the 50% retracement of the BC leg and the Reciprocal AB=CD Pattern.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.