Hi! I’m starting with Harmonic patterns. I found they are reliable, appears very often, and can be traded on any time frame.
I have read a lot of documentation and I’m a little confused about how to trade them.
Looking at the charts it seems to be that the best place to start the trade is at point “D”, and to divide by half the size of the trade, and to place one part on the XA->D retracement and the other BC->D retracement. And to take partial profits on the 38.2% retracement and move the stops to break even, and then place the other take profit at 61.8% OR point B (that becomes a strong support/resistance).
After looking for a lot of patterns I found that this works very good, with almost always the price touching the 23% - 38.2%, and about 70% of the times the 50% - 61.8%.
But I found some documentations that suggest to start the trade just after the point “B” is broken (that happens not very often) and put the stop at point “D”
This confuses me. Which one is the most common way to trade this patterns?
By the way, I observed that when a golden cross of stochastic ocurrs, and just after that a pin bar candle appears and a full Gartley is formed, the reversal becomes more accurate and increases the effectivity of the pattern.
wish i could help! but i don’t know the answers to your questions specifically…I can tell you that if you just identify a trending wave, you just get in at the bottom when buying or top when selling! The trick of course is identifying those bottoms or tops. I know that this doesn’t answer your question exactly, but it is simple but true. Also, lots of people within these threads are trading waves, they just may not know all the technical terms, etc., so you may find after doing your research that some of these threads are of value to you even if they don’t seem to be “harmonic waves theory” at first glance. Well, good luck to you…
I am reading on the subject right now. This looks like the only way to predict price action with accuracy. Strange, but efficient. I took a short trade on AUDUSD on the 1hr chart. Should be a good trade because there is harmonic pattern on the next two higher timeframe. Let’s see.
as far as i’m concerned harmonics have only been tested from starting the trade at the D point and no other points. can anyone share any tests of over 5000 trades to disprove this? I will even start to look at results with 1,000 trades. anyone?
Hi, try checking out the books by scott m carney which talks about harmonic patterns.
There’s quite a variation of them like gartley, bat, butterfly etc.
You should take your time and understand the ratios that line up between the different patterns, again his books cover it.
If you need a cheat sheet on the ratios, just google his name.
Still, it’s defintely not to use as a standalone but with other confluences like SR, trendlines etc.
To me, it’s just another indicator where price may react in the future.
i found that TradingArsenal.com - Successful Forex Trading with harmonic patterns are only harmonic trading forum but the advice is very limited -
i would love to watch a good youtube explaining them - but you will find every movie on youtube are just to dreict you to their web site and for $$$$
I would like to use ZUP indicators and I have several questions about the practical usage. I uploaded an image to illustrate my questions.
What do the comments in the upper left corner of the indicator mean?
The upper row
“MN V 122 0.753 | W1 -|- 156 0.589 | D1 /\ 105 0.873 | “ etc. and for the current time frame “H4 4.62% | 11 / 89 / 5 / 3 / APs-3”
I guess the meaning:
Monthly time frame is in downtrend but what is the meaning of 122 and 0.753?
Weekly time frame is sideways but what are the figures?
Etc.
And for the current time frame:
What is 4.62% for? What does that “11 / 89 / 5 / 3 / APs-3” mean?
The second row:
“It is found 8 patterns” – I guess there are 8 different ABCD patterns recognized on the current time frame. Anyway, what are the state of these patterns? Are they open, I mean are they prospective patterns for future trading, or some of them are finished?
“For pattern N1 – “ Is it pattern Nr.1?
“Bearish AB=CD [1.128*0.886] “ - This is unambiguous.
“(AB) = 438 C=108” - I think the AB leg is 438 and the BC leg is 108. OK. What are the measurement units? As far as I can measure using the cross hair tool in MT4, these figures do not mean the pip distance nor the number of bars.
Then we can go further to the popup windows and lines.
The popup hint on the image tells the same coordinates for the Green line. I assume this Green line is the AB leg. Am I right?
In the popup window, what does “1_11Triangle3” mean?
I’m speaking to Scott Carney and one of his students- seems amazing feedback. I’m also reading the books, and applying price action, horizontal levels and RSI/Stochastic/MACD divergence as additional reversal signals. So far though, I am really enjoying this. I just was hoping to find a high-level online course- seems Scott’s is the best so far.
