# 5-0 Also known as: 5-0 harmonic pattern. A Elliott & Harmonics concept (Harmonic patterns) in the LuxAlgo Library, with 1 indicator implementation. ## What is the 5-0 pattern? The 5-0 is a five-point harmonic structure defined by Scott Carney, distinctive because it begins with a failed trend rather than a clean retracement. The pattern is labeled 0-X-A-B-C-D: an initial swing into X, a reaction to A, then an AB leg that breaks beyond X at a 1.13 to 1.618 extension of XA, an even longer BC leg at 1.618 to 2.24 of AB, and a final CD leg that retraces precisely 50 percent of BC. That 0.50 retracement is the pattern's signature and the source of its name. Inside the structure sits a reciprocal [AB=CD](https://www.luxalgo.com/library/concept/abcd/): the CD leg approximately equals the AB leg in price distance, but as a retracement of the larger BC move rather than a continuation. Carney's reading is behavioral, the 0-X-A sequence looks like a failed final wave of the old trend, B is a failed breakout attempt, and the powerful BC leg establishes the new direction. The 50 percent pullback at D then offers a place to join the new trend, which makes the 5-0 more of a continuation entry than the deep reversal completions of the classic [harmonic patterns](https://www.luxalgo.com/library/concept/harmonic-patterns/). As with the other Carney structures, D is not a trigger by itself. The 0.50 BC retracement and the reciprocal AB=CD define a [potential reversal zone](https://www.luxalgo.com/library/concept/potential-reversal-zone/), and the trade is the reaction inside that zone, managed with the usual [execution discipline](https://www.luxalgo.com/library/concept/prz-execution/). ## How to identify a 5-0 pattern on a chart The measurements are unusual for a harmonic pattern, so a Fibonacci tool and strict sequencing matter more than shape recognition. 1. Find an impulsive move into X followed by a reaction to A; the 0-X-A sequence often reads as the last gasp of a prior trend. 2. Measure AB: it must extend beyond X, landing between 1.13 and 1.618 of the XA swing; a move short of X voids the pattern. 3. Measure BC: it should run 1.618 to 2.24 of AB in the opposite direction, a strong leg that typically breaks the prior trend structure. 4. Project D at the 0.50 retracement of BC and cross-check that CD roughly equals AB in price distance, the reciprocal AB=CD. 5. Wait for price to trade into the zone and show a reaction in the direction of the BC leg; a decisive break through the 0.618 retracement of BC is the common invalidation reference. ## How traders use it - As a trend-joining entry: because BC often marks the first strong leg of a new trend, the 50 percent pullback at D is used to enter with that new direction rather than against it. - With structure confirmation: many practitioners require the BC leg to have broken prior swing structure before trusting the D zone, on the logic that the pattern is only useful if a trend change is actually underway. - For defined risk: stops are commonly placed beyond the 0.618 retracement of BC, with targets back toward the C extreme; the shallow retracement keeps the risk-to-target geometry attractive when the zone holds. - With honest limits: the 5-0 appears less frequently than Gartley-type patterns and its early legs are easy to mislabel in real time, so most scanners flag it only after BC completes. ## 5-0 vs related harmonic structures - **Shark** (https://www.luxalgo.com/library/concept/shark/): The Shark shares the extreme C-beyond-A geometry and, in Carney's treatment, often precedes a 5-0: the Shark's completion becomes the 0 point of a subsequent 5-0. The Shark completes at 0.886 to 1.13 of an earlier swing, the 5-0 at 0.50 of BC. - **ABCD** (https://www.luxalgo.com/library/concept/abcd/): The plain AB=CD is a continuation-of-symmetry measurement. The 5-0 contains a reciprocal AB=CD, where CD equals AB but retraces the intervening BC leg instead of extending the move. - **Gartley** (https://www.luxalgo.com/library/concept/gartley/): The Gartley is a retracement pattern completing inside its initial XA leg. The 5-0 begins with failure and extension legs, and its D is measured off BC, not the opening swing. ## FAQ ### Who created the 5-0 pattern? Scott Carney defined and named the 5-0 as part of his harmonic trading work, presenting it alongside the reciprocal AB=CD concept. It is one of the later additions to the harmonic canon, well after the Gartley-descended retracement patterns. ### Why is it called the 5-0? The name refers to the defining 50 percent retracement: the D point completes at half of the BC leg. That 0.50 level is unusual among harmonic completions, which more often key off 0.786, 0.886, or extension ratios. ### Is the 5-0 a reversal or continuation pattern? Functionally it is closer to continuation. The large BC leg is read as the first move of a new trend, and the D completion is a pullback entry in that new direction. It reverses the CD leg, but with rather than against the freshly established flow. ### How reliable is the 5-0 pattern? No rigorous public statistics exist, and the pattern is rare enough that sample sizes stay small. Practitioners treat the 0.50 BC zone as a location for defined-risk entries with clear invalidation, not as a prediction; strong trends can cut through it without pausing. ## Implementations in the Library - 5-0 (LuxAlgo): https://www.luxalgo.com/library/indicator/5-0/ ## Related concepts - Harmonic Patterns: https://www.luxalgo.com/library/concept/harmonic-patterns/ - ABCD: https://www.luxalgo.com/library/concept/abcd/ - Three Drives: https://www.luxalgo.com/library/concept/three-drives/ - Gartley: https://www.luxalgo.com/library/concept/gartley/ - Bat: https://www.luxalgo.com/library/concept/bat/ - Butterfly: https://www.luxalgo.com/library/concept/butterfly/ - Shark: https://www.luxalgo.com/library/concept/shark/ - Cypher: https://www.luxalgo.com/library/concept/cypher/ - Anti-patterns: https://www.luxalgo.com/library/concept/anti-patterns/ - Exotic Harmonics: https://www.luxalgo.com/library/concept/exotic-harmonics/ --- Source: https://www.luxalgo.com/library/concept/5-0/ (LuxAlgo Library, the encyclopedia of trading & technical analysis). Free to use with attribution: https://www.luxalgo.com/library/license/