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5-0

By LuxAlgoJun 20, 2026

Static chart image

5-0 is the first faithful implementation of the 5-0 pattern in the library, built strictly on the structure's defining ratios. Confirmed swings assemble the 0-X-A-B-C sequence: an initial swing into X, an AB leg reaching 1.13–1.618 of XA beyond X, a BC leg stretching 1.618–2.24 of AB, then a D zone projected at BC's 0.50 retracement — the number the pattern is named for. Each structure draws its legs, points and ratios, and boxes the D zone.

How to Trade the 5-0?

  • Completion: price trading into the D zone completes the pattern — the risk-defined entry area.
  • Reaction: a close back in the BC direction while the zone holds — the confirmation read.
  • Invalidation / target: a decisive close through the Invalidation Retracement voids the setup; the dotted line at the C extreme marks the objective.

Completions inside the pivot confirmation lag are back-filled; a projection is dropped as stale once price runs beyond C without touching the zone. Like the rest of the harmonics family, it is a reversion structure — trade the measured zone, not a prediction.

5-0 Settings

  • Swing Length (default 8): pivot length for the swings forming 0 through C; larger finds larger, rarer structures.
  • AB / XA Range (default 1.13 to 1.618): AB's allowed extension of XA; AB must travel beyond X.
  • BC / AB Range (default 1.618 to 2.24): BC's allowed extension of AB.
  • Invalidation Retracement (default 0.618): the BC retracement whose decisive close invalidates the D zone.
  • Reciprocal AB=CD Check (default on) with Reciprocal Tolerance % (default 15): requires the projected CD leg to roughly equal AB.
  • Require C Beyond Point 0 (default off): demands BC break the pattern origin before the zone is trusted.
  • Display toggles: Point Labels, Ratio Labels, Target Line and Show Swings (all on by default).

Frequently Asked Questions

How does the 5-0 differ from an ABCD?

An ABCD is a four-point symmetry pattern, while the 5-0 embeds its reciprocal — a CD leg roughly equal to AB — inside a five-point structure whose opening legs break the prior trend. The build's cross-check makes that an explicit rule.

Why is the D zone anchored at a 0.50 retracement?

Because the precise 50 percent retracement of BC is the pattern's defining measurement — the number in its name. The zone spans from that level to the invalidation retracement, giving the trade a defined floor.

What makes a projection disappear without completing?

Two cases: a newer qualified setup replaces a stale awaiting projection, and price running beyond the C extreme before touching the zone deletes it. Resolved structures stay on the chart.

Original indicatorBuilt in-house by LuxAlgo

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