Hello everyone, recently i have been wanting to focus more on identifying Harmonic Price Patterns, and my question is, where do we draw the line in which we say the retracement or extension is not close enough. I have an example today where i was able to identify some sort of ABCD Pattern. My measurements were, the retracement from A to C was 0.659 and my extension from B to D was 1.029. I’m aware that this example may be a invalid due to the extension. which makes me beg the question of “What is too much?”.
It works best when fib levels are as close as possible to ideal ratios. But anything beyond 5-10% off starts getting questionable. Have you tried backtesting these patterns on diff TF?
Okay, thank you very much for that advice, this will help me narrow down what i should be cautious of. Your question at the end, did you mean “different trading formations”, if so i can say that i have spent a little bit of time backtesting, the challenge i find with Harmonic Patterns in backtesting is that if there isn’t an obvious starting point, its hard for me to figure where to put that first A line or X line.
Ideal retracement would be 0.618-0.786 and extension would be 1.272 - 1.618, but that is just my prediction.
Funnily enough, there’s a site called “Kane Trading” which clearly has an interest in ABCD patterns, and where to draw the line with harmonic price patterns. You might find an answer there? 
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I can see that being a good range to stick between and i am going to use this in my predictions and see how i get on. Thank you for the advice.
That is quite funny actually 
, i have looked him up and its got me hooked on what i could learn from him with his free education. i also notice he has books available too which i want to have look at. Thank you very much for introducing me to him.
Very amusing coincidence that you should so innocently (but also quite persuasively, considering you’d never heard of him!) happen to promote his products and services here. 
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I am not sure how you are trying come across. i was just stating what i saw and how i was intrigued in what he teaches. i want to learn to be better and i wanted to show my appreciation to the advice that was being introduced to me. i am not trying to promote anyone or anything, because i am still in no position to say what people should or should not do as i am still considered as a beginner. By all means, i am thankful that you gave your thoughts as it is important that people do not get misinformation.