Hi everyone,
I am a newbie who just started learning about forex, I finished the babypips school of pipsology which is awesome by the way.
But i still don’t understand harmonic patterns and gartley patterns, so here are my questions:
1-First of all i am using MT4 platform and i can not find anything called Fibonacci extension i can only find Fibonacci expansion are they both the same ?
2-In the ABCD pattern some of the rules are AB=CD and the time from A to B must be equal to the time from C to D, so are these rules strict rules meaning if i get an extra candle from C to D then its no longer a ABCD pattern ?
3-I am mainly studying the EUR/USD chart and i couldn’t find any harmonic patterns in the last week is that possible or did i fail in spotting them ?
If anyone has a link or a video showing how to find these patterns or measure them that would be great.
Hi,
Unfortunately, I don’t know the answers to your questions…I trade price action and these aren’t things that I really have to know about. I feel bad that noone has answered you though! Good luck…have you tried just googling these topics? That is how I usually get info…
Thank you guys for replying, i guess harmonics is not a popular topic among a lot of traders. I usually trade using price action and sometimes use indicators like stoch. But i am trying to expand my options by learning all possible methods for finding a good trade i like to think of them like tools in my toolbox i won’t use them all but its nice to have them ready when needed.
The reason i am so interested in harmonics is that i was trying the Elliot waves on USD/CHF last Friday and the results were amazing (in fact a bit creepy) maybe it was a coincidence but i made a sell order right before the US NFP report since the 5th wave was supposed to be going down and guess what my prediction came true !!!
So that’s why i was curious about harmonics since its seems those wave patterns are fairly accurate.
Check the thread titled “Who else trades Gartley Patterns??” in the Forextown forum section of Babypips. The poster seems to have luck with it. I had started trading these patterns a couple months back and literally got headache after headache. I thought i understood the variations quite well but never had much luck with them. I have since changed my strategy. this doesn’t mean others haven’t been profitable with them. I have come across others who trade solely on these harmonics and have had great success. good luck!
1 - Go into the properties of your retracement fib tool and add in the extensions. Instead of having a 0.618 you would put 1.618
2-No it would still be valid nothing in the forex is that exact. The AB=CD outlines an area not an exact time and price.
3-The last week has happened a long time ago. FXGroundworks has a cool tool which shows how many bullish or bearish patterns happened in the last day, week , month or year etc. I think its only in their members area. I’ve used it before and can’t say anything bad about it.
I also believe in Elliott waves. I spotted one on EURUSD. People don’t like these waves because they are difficult to count. But strategies tend to finish in order those waves without being noticed.
We know Elliott waves show strong relations with Fibonacci numbers. Why? Because Fibonacci numbers can be used to measure living things. And can you guess what the market is?
Strategies based on or taken part of Fibonacci numbers are related those waves and they are forming, even if we do not see them. Have a look at your chart. If you do not see a correct movement then go to a smaller TF. This is too long to explain and I did not tested in live yet. But I see the relations more often with working strategies and succesful trades at the end. It would be nice to see it in advance but that time havent come yet. I need more practice and confirmation form the market.
Do not bother yourself with wave patterns other than elliott because it is the base thing. it is very diffcult But remeber what the japanese says: The highest tops of the mountains are always cloud covered.
wow i thought that thread was dead and long gone, i guess its a zombie thread LOL
Still thanks a lot for all the helpful advise provided, to be honest i gave up a little with regards to harmonic trading its a bit too complex for my tiny mind and till now i haven’t been able to spot them successfully besides i found out price action plus elliot waves is where the goodies are but i will continue following the harmonic trading threads on this forum and other forums and hopefully someday i might be able to understand them and trade them.
Speaking of elliot waves yes they are really amazing and fairly accurate and actually pretty easy to spot, here are two observations i made when looking for those waves take them with a grain of salt but they seems to be working for me at least:
1-While the second and fourth wave will bounce off fib levels the second usually bounces off the 50% level.
2-If you are using the ADX indicator you will notice that waves tend to form accurately if the ADX value is above 25
What do you mean accurately? Easy to spot? This is the opposite what you wrote first. If you did easy spot them you would not have opened this topic.
I do not want to jump on you but elliott waves are the most difficult part of forex analysis.
