3 Steps to Trading Harmonic Price Patterns

[mac]

As you may have guessed, profiting off Harmonic Price Patterns is all about being able to spot those “perfect” patterns and buying or selling on their completion.

There are three basic steps in spotting Harmonic Price Patterns:

• Step 1: Locate a potential Harmonic Price Pattern
• Step 2: Measure the potential Harmonic Price Pattern
• Step 3: Buy or sell on the completion of the Harmonic Price Pattern

By following these three basic steps, you can find high probability setups that will help you grab those oh-so-lovely pips.


Let’s see this process in action!

Step 1: Locate a potential Harmonic Price Pattern

Oh wow, that looks like a potential Harmonic Price Pattern! At this point in time, we’re not exactly sure what kind of pattern that is.

It LOOKS like a three-drive, but it could be a Bat or a Crab…

Heck, it could even be a Moose!



In any case, let’s label those reversal points.


Step 2: Measure the potential Harmonic Price Pattern
Using the Fibonacci tool, a pen, and a piece of paper, let’s list down our observations.

1. Move BC is .618 retracement of move AB.
2. Move CD is 1.272 extension of move BC.
3. The length of AB is roughly equal to the length of CD.

This pattern qualifies for a bullish ABCD pattern, which is a strong buy signal.

Step 3: Buy or sell on the completion of the Harmonic Price Pattern

Once the pattern is complete, all you have to do is respond appropriately with a buy or sell order.

 

[centy]

As you may have guessed, profiting off Harmonic Price Patterns is all about being able to spot those “perfect” patterns and buying or selling on their completion.

There are three basic steps in spotting Harmonic Price Patterns:

• Step 1: Locate a potential Harmonic Price Pattern
• Step 2: Measure the potential Harmonic Price Pattern
• Step 3: Buy or sell on the completion of the Harmonic Price Pattern

By following these three basic steps, you can find high probability setups that will help you grab those oh-so-lovely pips.


Let’s see this process in action!

Step 1: Locate a potential Harmonic Price Pattern

Oh wow, that looks like a potential Harmonic Price Pattern! At this point in time, we’re not exactly sure what kind of pattern that is.

It LOOKS like a three-drive, but it could be a Bat or a Crab…

Heck, it could even be a Moose!



In any case, let’s label those reversal points.


Step 2: Measure the potential Harmonic Price Pattern
Using the Fibonacci tool, a pen, and a piece of paper, let’s list down our observations.

1. Move BC is .618 retracement of move AB.
2. Move CD is 1.272 extension of move BC.
3. The length of AB is roughly equal to the length of CD.

This pattern qualifies for a bullish ABCD pattern, which is a strong buy signal.

Step 3: Buy or sell on the completion of the Harmonic Price Pattern

Once the pattern is complete, all you have to do is respond appropriately with a buy or sell order.

can you show on live chat

 

[sebaibaz]

You could also complement your strategy with MACD and RSI

 

[pippin]

Trading harmonic price patterns involves identifying specific geometric patterns in price action, confirming them with additional technical indicators, and executing trades with careful risk management. By combining pattern recognition with confirmation tools and disciplined risk management, traders aim to capitalize on high-probability trading opportunities in the forex market.

 

[Liquidfusion]

The Harmonic price pattern is really a great trading strategy

 

[Liquidfusion]

I trade the Harmonic price pattern as a W = Double Bottom, with the 2nd V sometimes lower that the 1st V

 

[Liquidfusion]

A B = C D : I call this measured move - Good to see it echoed here