Tag: Harmonic Patterns

Shark, Cypher and Nen Star harmonic patterns

I admit it, previously I was not a fan of trading based on harmonic patterns. In general terms, I had the feeling that they are patterns with a high component of subjectivity, so they are subject to continuous reinterpretation. However, in trading, you have to keep an open mind and study any new development that appears in case it could … Read more

ZUP Harmonic Pattern Indicator for MT4

by rcanessa

In this article, we will present a modified indicator for Metatrader 4 designed to show harmonic price patterns in any price chart and in any time frame. It is not an official MT4 indicator.

Harmonic price patterns elevate geometric price formations to the next level through the use of Fibonacci numbers to define precise market inflection points. Unlike other trading methods used to trade in Forex and other markets, harmonic trading attempts to predict future price movements.

Harmonic trading can be defined as a trading methodology based on the recognition of specific price patterns and the alignment of exact Fibonacci ratios to find possible high probability trend change levels in the markets. This approach assumes that the patterns or cycles in markets, such as many patterns and cycles in life, tend to be repeated on a regular basis.

Harmonic Pattern Crab

by rcanessa

We continue with the harmonic patterns, which usually indicate potential reversal zones in the market price, although as always, ideally it is better to confirm their signals with other technical tools. Today we will see the Crab pattern. It could be said that within the harmonic patterns is one of the favorites among investors due to its effectiveness or reliability … Read more

Harmonic Bat Pattern – Definition & Features

by rcanessa

In this article we continue with the theory of harmonic patterns, which are price patterns that indicate the potential zones of change in the market price, although as always, ideally these trend change patterns should be confirmed with other technical tools. Today we will see the Harmonic Bat pattern. It could be said that within the harmonic patterns is one of the favorites among investors due to its effectiveness or reliability of its buy and sell signals.

The Bat pattern consists of several points (X, A, B, C and D) and price movements (AB, XA, BC, CD) and, of course, it has a bullish version and a bearish version. It is similar to the Gartley pattern but with different Fibonacci levels, for example, the Fibonacci retracement of 88.6% of the X-A movement.

If we speak of an ideal or perfect harmonic Bat pattern, its defining characteristics are as follows:

Harmonic Patterns in Trading

by rcanessa

Chart patterns known as harmonic patterns are undoubtedly one of the classic patterns which have been studied by many traders throughout their training within technical analysis. By mastering these types of price patterns, the use of this type of technique can provide early entries with a minimum of risk very near to price levels where there are trend changes. Harmonic patterns can be observed in any market.

For the short term, day traders can use this type of pattern in an effective way to buy and sell when the price touches an area of daily highs or lows. Gartley, the discover of this patterns, stated in his work that to buy or sell properly within a pattern of the type “AB = CD” (the best known among us) the market must be on a strongly established trend.

A change in a market trend or a strong correction may not always follow this pattern but you can even make profits by trading this price formation with proper money management and risk management in each trade, which requires some experience.