5-0 Harmonic Pattern Indicator TradingView - Free - [TradingFinder]

The 5-0 Harmonic Pattern Indicator is a technical analysis tool to identify potential trend reversals. Thanks to its unique combination of Fibonacci ratios and price behavior, it provides deep insights into market structure.

In the TradingView platform, this harmonic pattern comprises five key points (A-B-C-D-X), with specific Fibonacci ratios connecting them. Traders consider the 5-0 pattern a reversal pattern, as it often forms at the end of a strong trend.

Indicator Specifications

Bullish 5-0 Harmonic Pattern

Based on the 15-minute price chart of Ethereum (ETH), the price initially moves from point X to A in an upward trend.

After this upward movement, a price correction occurs from point A to point B. The price then rises and reaches point C, where a new high is formed that is higher than point A. Once the price reaches point D, the pattern is complete, and the indicator uses a green arrow to indicate a buy entry.

Bearish 5-0 Harmonic Pattern

According to the 1-hour price chart of Binance Coin (BNB), the price initially moves from point X to A in a downward trend. After this downward movement, an upward price correction occurs from point A to point B. The price then decreases and reaches point C, where a new low is formed that is lower than point A.

Once the price reaches point D, the pattern is complete, and the indicator uses a red arrow to indicate a sell entry.

Indicator Settings

• ZigZag Pivot Period: Calculates the zigzag line, set to 3;
• Show Valid Format: Displays patterns based on specific conditions;
• Show Formation Last Pivot Confirm: Confirms the final pivot of the pattern;
• Period of Formation Last Pivot: The period for confirming the last pivot is 1;
• Show Bullish Pattern: Displays bullish patterns;
• Show Bearish Pattern: Displays bearish patterns;
• Color Bullish Pattern: Sets the color for bullish patterns;
• Color Bearish Pattern: Sets the color for bearish patterns;
• Width Line: Line thickness for drawn patterns, set to 1;
• Label Size: Sets the size of labels;
• Switching Colors Theme Mode: Changes the indicator's theme;
• Alert: Sets up alerts;
• Alert Name: Defines the name for the alert.

Conclusion

The 5-0 Harmonic Pattern Indicator is a valuable tool for identifying reversal points. It can significantly improve trading accuracy when used alongside proper risk management and other tools. This indicator automatically plots the pattern on the chart and, under the right conditions, uses arrow markers to issue entry signals for trades.