Harmonic Pattern - Technical Analysis & Trading Signals
Harmonic® Patterns
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What is Harmonic® pattern?

Through utilization of Fibonacci patterns and levels, this pattern has certain structures in which future price movement can be speculated.

Through Fractal characteristic, this pattern can be repeated inside another bigger Harmonic® pattern continuously.

Traders can use Fibonacci ratios and its number arrangements in everything in the world with repetitive manner. Both Fibonacci Retracement and Extension (Expansion) can be used while it has considerably high effect on determining Harmonic® pattern.

Harmonic® can help traders to detect future market price precisely, however, it may be identified incorrectly that leads to trade failure so traders must apply Risk/capital Management on their trades.

After a pattern of certain Harmonic® type forms, an area in which traders must open their trades called PRZ (Potential Reversal Zone), can be detected by Fibonacci patterns.

Top notch and complete Harmonic® Pattern details can be found in HarmonicTrader.com that is developed by Scott Carney.

Harmonic® pattern types

Diverse technical analysis can be generated from this pattern with multiple shapes and formats. Here are the most common Harmonic® patterns;

Bat Bearish Bullish

Developed by Scott Carney in 2011, this precise pattern shows Potential Reversal Zone (PRZ) on 0.886 of XA trend. Under other strict conditions if this pattern is formed then technical analysis can be generated with smaller SL comparing with other patterns. Multiple samples

AB = CD Bearish Bullish

This accurate pattern has 3 trends; AB, BC and CD. It is presumed that after CD, there would be a reversal trend. Under strict condition, BC must return between level 0.786 and level 0.618 of AB. CD would return between level 1.270 and level 1.618 of BC. Multiple samples

Alternate Bat Bearish Bullish

Scott Carney discovered another pattern in 2003 with similar form as Bat but different Fibonacci and trend length ratio. PRZ must be on 1.13 of XA while CD is 1.618 AB trend. Multiple samples

Alternate AB = CD Bearish Bullish

A derivation of accurate AB = CD pattern, PRZ of this pattern must be between level 1.27 to level 1.618 of AB. By applying different Fibonacci level, the credibility of future conjecture increases and risk would decrease considerably. Multiple samples

Butterfly Bearish Bullish

Despite of the fact that standard format of this pattern was first introduced in Scott Carney’s book in 1998, “The Harmonic® Trader”, but this pattern was discovered by Bryce Gilmore. Its standard format has specific ratios to be met to generate valid PRZ. Like ALT AB = CD pattern, CD must be between levels1.27 and 1.618 XA and CD must be between levels 2.00, 2.24 and 2.618 of AB. Multiple samples

Crab Bearish Bullish

Developed by Scott Carney in 2001, this pattern provides a tight PRZ only if CD is on level 1.618 of XA and levels 2.24 till 3.618 of BC. It represents small SL Price. Multiple samples

Deep Crab Bearish Bullish

Another format of Crab pattern, found out by Scott Carney in 2001, which has close ratios with Crab while AB must be on level 0.886 of XA to generate a sound trading signal. Multiple samples

5-0 Pattern Bearish Bullish

In 2005 Scott Carney figured out a new Harmonic® pattern with unique shape in which B would be between level 1.618 and level 1.13 and CD returns to level 0.5 of Fibonacci BC then PRZ can be detected. Multiple samples

Gartley Bearish Bullish

Introduced by H.M. Gartley in 1935, this pattern can indicate valid PRZ only if CD returns to level 0.786 of XA while AB Bounces back to level 0.618 of XA. Multiple samples

Three Drives Bearish Bullish

First time introduced by Robert Pretcher in his book, “Elliot Wave Principle”, in which if a 3-Wave of 5-Wave structure with symmetrical movement were formed with peaks or valleys between levels 1.27 and 1.618 of previous wave then this pattern generates valid and reliable PRZ. Multiple samples

Shark Bearish Bullish

This pattern shows sound PRZ with high accuracy and efficiency if BC returns to level 0.886 till level 1.13 of 0X and level 1.618 till level 2.24 of AB. Multiple samples

Cypher Bearish Bullish

This 4 legged pattern represents sound PRZ with the following conditions; B returns to level 0.382 till level 0.618 of XA and D returns to level 0.786 of XA. Multiple samples

Trading Signals

Buy Signal
When all waves of each pattern form accurately, and the last wave is a downward trend if price proceeds inside PRZ, then a Buy signal can be generated after any other Buy confirmation is detected by traders.
  • Entry Price: Inside PRZ
  • Stop Loss: Higher than PRZ
  • Take Profit: Based on TP1 and TP2 of given Harmonic® pattern, below PRZ
Sell Signal
When all waves of each pattern form accurately, and the last wave is a downward trend if price proceeds inside PRZ, then a Sell signal can be generated after any other Sell confirmation is detected by traders.
  • Entry Price: Inside PRZ
  • Stop Loss: Higher than PRZ
  • Take Profit: Based on TP1 and TP2 of given Harmonic® pattern, below PRZ
Compatible markets: All markets and symbols Suitable time-frames: M30 , H1 ,H4 , D1 , W1 , MN

Features of Harmonic® patterns

Serviceable on all markets
Applicable on all financial markets and trading symbols
Influential effect on future market trend
Due to its mathematical structure and Fractal nature it has considerable impression on market
Sound principle
Due to its conclusion from nature order of world and mathematical structure, it has robust response with continuous repetitive order and formation
Diverse strategies
Through various conclusions and formats, traders can utilize various strategies from this pattern
Multi-Timeframe
This pattern can be implemented in different time frames
Reversal position
Reversal technical analysis can be generated to forecast future trend direction and targets

Advantages of our Harmonic® pattern

Available on ALL financial markets
We generate our spectacular analysis on all tradable symbols and financial markets
Modified and enhanced format
Our well-educated and highly experienced R&D team develops and enhances detection conditions for perfect and highly credible outcome, with some unique conclusions
Available on ALL financial markets
We generate our spectacular analysis on all tradable symbols and financial markets
All formats
We consider all Harmonic® patterns to be detected automatically with valid responses
Full Sketch
Our system provides the full sketch of detected pattern on time with accurate PRZ of each pattern
Reversal area
Our programmed algorithm can detect reversal spots from Harmonic® pattern technical analysis
Convenient Harmonic® Technical Analysis
Our system consider some formats of Harmonic® pattern to generate reliable technical analysis
Valid and substantiated signal
Valid and reliable trading signals from most of the Harmonic® patterns are generated with high validity and prosperity
Timely alert
Immediate alert will be generated after speculated PRZ is touched by price
Accessible through Mobile App
Our technical team have developed application for both iOS and Android cell phones and tablets
Real-time notifications and online updates
For successful trades, traders must have valid and well-timed information and technical analysis, hence our system delivers high quality technical analysis instantly. Providing any changes in market speculation and analysis, updates on our technical analysis would be delivered promptly
Precise and clear Stop Loss, Take Profit and Entry prices
We generate precise order prices to help amateur traders to place successful trades while professional traders can use accurate spots to confirm their speculations
Variable Pips with short SL
Our technical analysis can be exploited for various trading methods with short SL prices
Multi-Timeframe
We provide our Harmonic® technical analysis on all available time frames

Harmonic Pattern

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