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The 5-0 Pattern is a harmonic retracement pattern identified by Scott Carney. It's unique among harmonics because it identifies a reversal AFTER a prior harmonic pattern has failed — essentially trading the correction of a failed move.
The 5-0 completes at the 50% retracement of the BC leg, hence the name. It's a five-point structure where the AB = CD internal structure helps define the reversal zone.
This pattern is valuable because it provides an entry opportunity when other harmonic patterns have already played out or failed. It captures the natural reversion after an extended move.
The 5-0 catches the correction of an exhaustion move. After price has extended through a prior harmonic completion, it often retraces exactly 50% of that extension before continuing or reversing again.
The 50% retracement is one of the most psychologically significant levels in trading. It represents perfect equilibrium — the midpoint between buyers and sellers. When a harmonic structure aligns with a 50% retracement, the probability increases.
The pattern is essentially a "second chance" trade. If you missed the initial harmonic setup, the 5-0 gives you a structured entry at the 50% correction.
Enter at D (50% of BC) with reversal confirmation. The level is precise — limit orders work when the structure is clean.
Beyond 61.8% of BC. If price retraces more than 61.8%, the 50% thesis is invalidated.
T1: Point B (start of the BC leg). T2: Beyond B using Fibonacci extensions.
The tight stop (50% to 61.8%) creates favorable R:R, typically 1:2 or better.
The 5-0 is an advanced pattern best suited for traders already familiar with harmonic structures. Its strength lies in providing opportunities after other patterns have completed or failed.
When a Gartley or Bat completes and then fails, look for the 5-0. It's the harmonic trader's recovery play.
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