I’m messing up my mind here trying to understand how harmonic patterns work. They seem so difficult and complicated. Is anybody actually using them and making a profit?
I remember reading a study done years ago about butterflies and found the results interesting- there was a slight edge, but not by much (via automated trading algos).
I personally did some harmonic stuff on and off for prob a year- primarily butterfly, some bats. I remember finding success with crabs and sharks tho-- primarily because to me they seemed like mean reverting strategies for over extended markets.
1 Like
Hi @sarah_08!
It’s true that using harmonic patterns may seem complicated, but like FOREXUnlimited, we also have other experienced traders on our forums who are using harmonic patterns in their strategies.
If you’re interested, here are a couple threads you can check out:
Hope this helps!
Penelopip
1 Like
Thank you!
Yes we can use harmonic patterns but you have to be careful with their use because sometimes they can be misleading. It is a kind of advanced technical analysis which requires a lot of experience to apply properly.
My thoughts are that harmonic patterns would be rather hit and miss because no where near as many people search for these patterns compared to other methods of trading.
I think harmonic patterns are not so profitable in the long run, they provide no edge. They are quite complex and difficult to use. You can look upto other indicators as well.
Have you read any of the volume books by Scott Carney?