# Predict Powerful Market Reversals Using This New Pattern

## Presenting a New Powerful Market Reversal Pattern

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Market patterns refer to recurring formations or behaviors observed in financial markets over time. These patterns can be identified through the analysis of historical price data and are used by traders and investors to make informed decisions about buying, selling, or holding assets.

This article presents a new pattern referred to as the Camel pattern due to it having a certain resemblance to a camel’s humps.

# Quick Introduction to Harmonic Patterns

Harmonic patterns are a set of trading patterns in financial markets that use geometric price patterns to predict future price movements. These patterns are based on Fibonacci retracement and extension levels, which are mathematical ratios derived from the Fibonacci sequence.

For example, a common harmonic pattern is the Gartley pattern, which consists of specific retracement and extension levels that form a distinct shape on a price chart, resembling the letter M or W When these patterns appear, traders interpret them as potential reversal points in the market, indicating that the price is likely to change direction.

Harmonic patterns are popular among technical analysts because they provide a framework for identifying potential entry and exit points for trades. However, like any technical analysis tool, they are not foolproof and should be used in conjunction with other indicators and risk management strategies.

# Introduction to the Camel Pattern

The Camel pattern may be tricky to detect due to its complex conditions, but the first question that we should ask ourselves is ‘why should it work?

The answer to that is the same as the answer to all harmonic patterns, that is the confluence zone effect. A confluence zone is an area where many Fibonacci or other tools point to possible reversal.

With the Camel pattern, we need to see two instances of a symmetrical projection (as shown by the colored arrows in the theoretical illustrations below) and a simple 88.6% retracement from point B to point C.

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