Concept
Harmonic & Fib Ratio Set
Harmonic & Fib Ratio Set, also known as 0.382, 0.5, 0.618, 0.707, is a Elliott & Harmonics concept. The Library holds 9 implementations, each one a working definition you can pull into Quant.
parameters of the fib toolset
Top Harmonic & Fib Ratio Set indicators
9 total
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What is the Harmonic & Fib Ratio Set?
The Harmonic & Fib Ratio Set is the shared vocabulary of levels behind Fibonacci tools and harmonic patterns: 0.382, 0.5, 0.618, 0.707, 0.786, 0.886, 1.13, 1.272, 1.414, 1.618, 2.0, 2.24, 2.618, 3.14, and 3.618. The core is the golden ratio: 1.618 and its reciprocal 0.618, with most other members chained from them by roots and powers (0.786 is the square root of 0.618 and 0.886 its fourth root; 1.272 is the square root of 1.618 and 2.618 its square; 1.13 is the reciprocal of 0.886). Ratios below 1 grade pullbacks; ratios above 1 project beyond the measured swing.
Not every member is Fibonacci-derived. The 0.5 and 2.0 come from the older halving-and-doubling tradition, 0.707 and 1.414 are built on the square root of 2, 2.24 approximates the square root of 5, and 3.14 approximates pi; harmonic trading literature added these because each pattern, from the Gartley to the Crab, is defined by which ratios its legs must reach. The set matters because it standardizes measurement: a fib retracement or fib extension anchored to the same swing reads the same everywhere, so pattern definitions and potential reversal zones all reference one common grid. None of these levels is a guarantee; they are agreed-upon places to look.
How traders use it
- Grading pullback depth: 0.382, 0.5, 0.618, 0.786, and 0.886 mark progressively deeper retracements, and many playbooks key on specific bands such as the golden pocket around 0.618 to 0.65.
- Defining harmonic patterns: each pattern is a ratio sequence with tolerances (a Bat completes near the 0.886 retracement of XA, a Crab at the 1.618 extension), so the set functions as the alphabet those definitions are written in.
- Projecting targets: the above-1 members (1.272, 1.618, 2.0, 2.618, 3.618) extend a completed swing forward to set objectives once a level breaks or a pattern completes.
- Building confluence: when measurements from different swings land near the same price, the overlapping ratios form a cluster that practitioners weight more heavily than any single level.
Harmonic & Fib Ratio Set vs related concepts
Fib Retracement: The retracement tool applies the below-1 members of the set (0.382 through 0.886) to a single swing to grade pullbacks. The ratio set is the vocabulary; the retracement is one instrument that plays it.
Fib Extension: Extensions apply the above-1 members (1.272, 1.618, 2.618 and beyond) to project targets past a swing. Same grid, opposite side of 1.0.
Golden Pocket: The golden pocket is one narrow slice of the set, the zone around the 0.618 to 0.65 retracement, singled out as a high-interest pullback area. The set is the full menu; the pocket is a single popular order.
More Harmonic & Fib Ratio Set implementations
Concept family
Elliott & Harmonics
33 concepts mapped · 17 in the Library
Harmonic & Fib Ratio Set FAQ
Are all harmonic ratios Fibonacci ratios?
No. The golden-ratio family (0.382, 0.618, 0.786, 0.886, 1.272, 2.618, 3.618) traces back to 1.618 through powers, roots, and simple sums, but 0.5 and 2.0 are simple halves and doubles, 0.707 and 1.414 come from the square root of 2, 2.24 approximates the square root of 5, and 3.14 approximates pi. Harmonic traders added the non-Fibonacci members to define specific pattern completion points.
Where does the 0.886 retracement come from?
It is the fourth root of 0.618 (equivalently, the square root of 0.786), roughly 0.8867. It entered technical analysis through the harmonic trading literature, credited to Jim Kane and popularized by Scott Carney, and it anchors the D point of the Bat pattern. Its reciprocal, roughly 1.13, plays the same role on the extension side.
Do markets actually respect these ratios?
Not reliably enough to trade on their own. Some reactions at popular levels are plausibly self-fulfilling because many participants draw the same tools, but no ratio holds consistently and the academic evidence is mixed. Most disciplined uses treat ratio levels as zones for confluence and risk placement rather than as standalone signals.
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