Harmonic Patterns

Purpose

The Fibonacci geometry school uses precise ratio relationships to identify price patterns:

Pattern	B-Point Retracement	D-Point Retracement	Direction
Gartley	0.618 XA	0.786 XA	Reversal
Bat	0.382-0.5 XA	0.886 XA	Reversal
Butterfly	0.786 XA	1.27 XA	Reversal
Crab	0.382-0.618 XA	1.618 XA	Reversal

Core Concepts

• XABCD five-point pattern: a price structure defined by precise Fibonacci ratios
• PRZ (Potential Reversal Zone): the convergence area around point D, where reversal probability is high
• Bullish pattern (point D at the bottom) → buy signal
• Bearish pattern (point D at the top) → sell signal

Dependencies

pip install "vibe-trading-ai[harmonic]"

pyharmonics is optional. If the extra is not installed, the example signal engine falls back to the bundled detector.

Parameters

Parameter	Default	Description
is_stock	False	Whether the instrument is a stock (affects analysis parameters)

Signal Convention

• 1 = long, -1 = short, 0 = stand aside