The Amazing Harmonic Pattern Trading Strategy will give you a whole new understanding of the price action. Our team at Trading Strategy Guides knows that the geometric patterns that can be found in nature, the same anomalies can be found in financial markets as well. This ability to repeat and create these intricate patterns is what makes the Forex harmonic patterns so incredible.
The Forex harmonic patterns are complex patterns, but if you want to start somewhere with a simpler price action pattern, we recommend the Head and Shoulders Price Pattern Strategy. There are many benefits to harmonic trading. If you want quick profits our favorite day trading strategy Best Stochastic Trading Strategy- Easy 6 Step Strategy might be more suitable for your own needs.
This strategy performs the same and is suitable for trading other asset classes like stocks, futures, options, etc. This ability to consistently repeat makes the Forex harmonic patterns so attractive for our team at Trading Strategy Guides. The Forex harmonic patterns use the Fibonacci numbers to define accurate trading points. The harmonic pattern indicator will allow you to call market turning points with a high level of accuracy. In technical analysis, the Butterfly harmonic pattern is a reversal pattern composed of four legs.
A leg is a swing wave movement that connects and is composed of a swing high and a swing low. The Butterfly harmonic pattern depends upon the B point as it defines the structure and sets up the other measurements within the pattern to define the trade opportunities.
To the Butterfly pattern the B point, it must possess precise Other rules that redefine the structure further includes the BC projection that must be at least 1. And, finally, the C point must be within the range of 0. You can start drawing the butterfly pattern as soon as you have the first two legs of the pattern. Once you have the points X, A and B you can begin monitoring the price action and look for confirmation that wave C conforms the Butterfly pattern rules.
There is one more important thing that we need to learn before to actually define the Harmonic Pattern Trading Strategy rules, which is to give you indications on how to apply the Harmonic pattern indicator. I would walk you through this process step by step. All you need to do is to follow this simple guide and see figure below for a better understanding of the process: Ideally, as a trader, you would like to enter at the completion of point D.
As we established earlier, the point D of the Butterfly Forex harmonic pattern can develop anywhere between 1. In the above example, we entered at 1. Where to place your protective stop loss is the next logical question.
For the Bullish Butterfly Harmonic Pattern, you normally want to place your protective stop loss below the 1. So far, we defined the proper entry point and the stop loss location for the Harmonic Pattern Trading Strategy. The Forex harmonic patterns, while they are a very reliable pattern, you want to be very aggressive with your profit target. As the saying goes: We want to close the second part of our trade once we hit the 0.
The Harmonic Pattern Trading Strategy gives us the highest probabilities for success. The great thing about the Forex harmonic patterns is that they recognize areas where supply and demand come into focus.
Harmonic Patterns are easy to spot when you nail down the key points that we talk about in the strategy. Whats your experience trading these Patterns? It just comes with practice.
Been doing this for 7months months nd im loving it. Just keep to those ratios and always be alert for with every retracement comes a pattern. We want to share with you some important information about Trading Strategy Guides as we move forward to our goal to help 1,, Traders find a strategy that suites them best. We want you to fully understand who we are as a Trading Educational Website… 6. We will send out many free trading strategies for you to learn and apply to your trading system right away… Our team gathers a vast amount of information and comes up with some of the simplest and easiest trading strategies to follow each week.
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Winners will be annoounced tomorrow! Update your email preferences http: Unsubscribe from all future emails http: It is simple to learn and will only take you a few minutes to read. Tap Here for your Free Report http: Our goal is to help you find a strategy that fits you best. So if you find that this one is not for you then no worries, we have many of them! We have a Cypher Patterns Trading Strategy that we developed a while back and we think this one you are going to enjoy! Tap Here to Get the Free Report!
Its a great strategy for day traders and occasional scaplers. Let us know if you need anything from us! Tap here now to see the Winners! One of our Members told us this,. We look forward to hearing from you! Read it here on our blog: MACD indicator is the real deal and has been around for a long time! Go check out our strategy now by tapping here! Go here now to learn more http: Simple is better and this indicator is as simple as it gets! Hey Reo, are you still trading the patterns?
If so, are you still drawing them out or using an indicator? I was simply asking just to see your experience with any pattern indicators, but what I have found is that there is a lot of people who trade patterns differently.
Thanks and take care fam! My experiences with Harmonic Patterns? I spent a good part of 1 year attempting to trade them on Demo and lost big time. Spotting Harmonic Patterns was very difficult for me and it meant being in front of the computer a long time. You suggested finding point X and then just follow the trend swings? Can you imagine the time it took me to follow every swing for just the main 6 Patterns on all the higher time frames for 28 currency pairs?
I tried and it was nearly impossible. Eventually, I downloaded free Harmonic Pattern Software and subscribed to a couple well known sites that draw the patterns for you and even notified you when patterns are completed or in the process of being completed there are sites where you can pay for more professional software or signal alerts — expensive, so I just used the free versions. These were a God-send! I won more trades with much less time in front of the computer.
But I still lost a lot of Demo money. For me, it was too time consuming and to complex with all the different variations a pattern could have.
Lastly, Big Money knows you are taking some profit at Point B. Expect price to approach it and then reverse suddenly to Stop you Out for little or no gain. I applaud you for tackling Harmonic Trading and I look forward to reading more from you on the subject. But, for now, this is just an over-simplification of the topic and will require a lot more research on your part to make traders like myself profitable using it.
You provide us with simple and accurate Strategies — and I thank-you for them.. But including Harmonic Trading as such is a bit out of character for your website. Welcome to the real world of financial trading Chaplainrick! Human beings acting as traders distort all or most chart patterns that I see so be prepared for great variance and deviation from the expected normal pristine chart patterns.
That is my best advise. We can distinguish six basic Forex harmonic patterns: Harmonic Pattern Indicator The harmonic pattern indicator will allow you to call market turning points with a high level of accuracy.
What is the Butterfly harmonic pattern? Butterfly harmonic pattern rules summary: Step 1 How to apply the Harmonic Pattern Indicator I would walk you through this process step by step. First, click on the harmonic pattern indicator which can be located on the right-hand side toolbar of the TradingView platform. In the MT4 terminal you can locate the harmonic pattern indicator in the Indicators library. Identify on the chart the starting point X, which can be any swing high or low point on the chart.More...