What it is
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 psychology
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.
Identification
- 01Initial move (0-X-A) — Establishes the range
- 02Extension (A-B) — Pushes beyond the initial range
- 03BC retracement — Creates the leg to measure
- 04D completes at 50% of BC — The defining level
- 01AB = CD symmetry within the structure — Internal harmony
- 02D at 50% coincides with support/resistance — Confluence
- 03Reversal candle at D — Confirmation
- 04Pattern follows a completed/failed harmonic — Context
- 01D doesn't reach 50% of BC — Incomplete
- 02No internal AB = CD structure — Missing harmonic geometry
- 03Price blows through 50% without reacting — Failed level
- 04Unclear swing points — Can't define the structure
Execution framework
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.
Context matters
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.
- 01Clean prior harmonic structure visible
- 0250% level aligns with horizontal S/R
- 03Internal AB = CD is precise
- 04Volume declining into D
- 01No clear prior harmonic context
- 0250% level in open space
- 03Internal structure is imprecise
- 04Strong trend momentum through D
When a Gartley or Bat completes and then fails, look for the 5-0. It's the harmonic trader's recovery play.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.