Harmonic Patterns

Harmonic patterns are used for technical analysis and the main function is to predict future price movement. It is a trading strategy that works with Fibonacci retracement and extension ratios.

However, the Fibonacci ratios used in the analysis and measurement of Harmonic patterns are 0.382, 0.50, 0.786, 0.886, 1.27, 1.41, 1.618, 2.0, 2.24, 2.618, 3.14, and 3.618. Fibonacci levels must align with accurate Fibonacci wave measurement for patterns to be valid. Moreover, the Harmonic pattern is used to identify how long price will move and the exact point where reversal is expected to occur.

Harmonic Pattern is usually formed when four swings high/low points are connected together. This strategy gives a high probability of success and it also helps to identify areas of demand and supply.

Technically, patterns exist within other patterns, and this also cut across time frames as long as the trend is formed in a wavy manner. It is important to draw harmonic patterns on higher time frames (1hr upwards) as lower time frames have more noise that may render the patterns ineffective.

The combination of Elliott waves principles and the analysis of Harmonic Patterns is what gives experienced traders the upper hand when it comes to trading currency pairs successfully.

The four most popular patterns are the Gartley, Butterfly, Bat and Crab patterns. We also have the Shark and the Cypher patterns.

 

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Harmonic Signals

USDCHF: DAILY (10 OCT 2018 22:16 GMT)

Diagonal

 

GBPUSD: DAILY (9 OCT 2018 23:21 GMT)

Harmonic

 

EURAUD: DAILY (9 OCT 2018 23:14 GMT)

Harmonic

 

USDCAD: 4HR (9 OCT 2018 23:05 GMT)

Harmonic

 

AUDUSD: DAILY (9 OCT 2018 22:41 GMT)

Harmonic

 

NZDUSD: DAILY (9 OCT 2018 22:35 GMT)

Harmonic

 

AUDJPY: DAILY (9 OCT 2018 22:27 GMT)

Harmonic

 

USDJPY: DAILY (9 OCT 2018 22:09 GMT)

Harmonic

EURCHF: DAILY (8 OCT 2018 00:01 GMT)

Harmonic

 

EURUSD: DAILY (7 OCT 2018 23:29 GMT)

Harmonic

EURCAD: 4HR (3 OCT 2018 06:50 GMT)

Harmonic

After

Harmonic

 

AUDUSD: 4HR (TUE 2 OCT 2018 23:11 GMT)

Harmonic

 

CHFJPY: DAILY (TUE 2 OCT 2018 23:05 GMT)

Harmonic

After

Harmonic

 

EURCAD: 4HR (TUE 2 OCT 2018 06:44 GMT)

Harmonic

 

USDCAD: 4HR (MON 1 OCT 2018 22:25 GMT)

Harmonic

After

Harmonic

EURAUD: 4HR (MON 1 OCT 2018 08:49 GMT)

Harmonic

After

Harmonic

 

AUDUSD: 4HR (MON 1 OCT 2018 01:14 GMT)

Harmonic

 

EURUSD: DAILY (MON 1 OCT 2018 00:07 GMT)

Harmonic

After

Harmonic

 

EURCAD: (FRI 28 SEP 2018 06:13 GMT)

Harmonic

 

EURCAD: (THUR 27 SEP 2018 06:52 GMT)

Elliott

 

EURGBP: SELL –  4HR CHART (26 SEP 2018 22:51 GMT)

Harmonic

After

Harmonic

EURGBP 4HR CHART (24 SEP 2018 23:02 GMT)

Harmonic

 

USDCAD 4HR CHART (24 SEP 2018 22:40 GMT)

Harmonic

 

EURAUD 4HR CHART (24 SEP 2018 02:35 GMT)

Harmonic

 

GBPJPY 4HR CHART (24 SEP 2018 02:35 GMT)

Harmonic

 

NZDJPY 4HR CHART (24 SEP 2018 02:35 GMT)

Harmonic

After

Harmonic

 

AUDJPY 4HR CHART (24 SEP 2018 02:25 GMT)

Harmonic

After

Harmonic

USDJPY DAILY CHART (24 SEP 2018 02:18 GMT)

Harmonic

 

EURUSD DAILY CHART (24 SEP 2018 01:54 GMT)

Harmonic

 

USDCAD 4HR CHART (24 SEP 2018 01:34 GMT)

Harmonic

 

Gartley Pattern (Wave A to D is correction-correction-extension)

 

Harmonic

For Bullish Gartley pattern, BA price move is the correction of XA. BC price move is a retracement of AB price movement while CD price move is an extension of wave BC.

Point B is 0.618 retracement of impulsive wave XA. Point C is 0.382 to 0.886 retracement of wave AX. Point D is 0.786 retracement of XA. The long position is usually entered at point D after bullish price action is confirmed (that is, waiting for the price to start an upward movement).

Looking at the Bearish Gartley pattern, BA price move is the correction of XA. BC price move is also a retracement of AB price movement while CD price move is an extension of BC price movement.

Also, Point B on Bearish Gartley pattern is 0.618 retracement of impulsive wave XA. Point C is 0.382 to 0.886 retracement of wave AX. Point D is 0.786 retracement of XA. The short position is usually entered at point D after bearish price action is confirmed (that is, waiting for the price to start a downward movement).

Butterfly Pattern (Wave A to D is correction-correction-extension)

Harmonic

Analyzing the Bearish Butterfly pattern, BA price move is the correction of XA. BC price move is also a retracement of AB price movement while CD price move is an extension of BC price movement.

Point B is 0.786 retracement of impulsive wave XA. Point C is a minimum 0.382 to a maximum 0.886 retracement of wave AX. Point D is 1.27 extension of XA. A short position is usually entered at point D after bearish price action is confirmed (that is, waiting for the price to start a downward movement).

For the Bullish Butterfly pattern, BA price move is the correction of XA. BC price move is a retracement of AB price movement while CD price move is an extension of BC price movement.

Also, Point B on Bullish Butterfly pattern is 0.786 retracement of impulsive wave XA. Point C is minimum 0.382 to maximum 0.886 retracement of wave AX. Point D is 1.27 extension of XA. A long position is usually entered at point D after bullish price action is confirmed (that is, waiting for the price to start an upward movement).

 

Bat Pattern (Wave A to D is correction-correction-extension)

Harmonic

Analyzing the Bearish Bat pattern, BA price move is the correction of XA. BC price move is also a retracement of AB price movement while CD price move is an extension of wave BC.

Point B is a minimum of 0.382 to a maximum 0.50 retracement of impulsive wave XA. Point C is 0.382 to 0.886 retracement of wave AX. Point D is 0.886 retracement of XA. The short position is usually entered at point D after bearish price action is confirmed (that is, waiting for the price to start a downward movement).

For the Bullish Bat pattern, BA price move is the correction of XA. BC price move is a retracement of AB price movement while CD price move is an extension of BC price movement.

Also, Point B on Bullish Bat pattern is a minimum of 0.382 to a maximum of 0.50 retracement of impulsive wave XA. Point C is is a minimum of 0.382 to a maximum of 0.886 retracement of wave AX. Point D is 0.886 retracement of XA. The long position is usually entered at point D after bullish price action is confirmed (that is, waiting for the price to start an upward movement).

Crab Pattern (Wave A to D is correction-correction-extension)

Harmonic

Analyzing the Bearish Crab pattern, wave BA is the correction of wave XA. BC price movement is also a retracement of AB price movement. While CD is an extension of wave BC.

Point B is a minimum of 0.382 to a maximum of 0.886 retracement of impulsive wave XA. Point C is a minimum of 0.382 to a maximum of 0.886 retracement of wave AX. Point D is 1.618 extension of XA. A short position is usually entered at point D after bearish price action is confirmed (that is, waiting for the price to start a downward movement).

For the Bullish Crab pattern, BA price movement is the correction of XA. BC price movement is a retracement of AB price movement, while CD price move is an extension of wave BC.

Also, Point B on the Bullish Crab pattern is a minimum of 0.382 to a maximum of 0.886 retracement of impulsive wave XA. Point C is a minimum of 0.382 to a maximum of 0.886 retracement of wave AX. Point D is 1.618 extension of XA. A long position is usually entered at point D after bullish price action is confirmed (that is, waiting for the price to start an upward movement).

 

Shark Pattern (Wave A to D is correction-extension-extension)

Harmonic

Looking at the Bearish Shark pattern, wave BA is the correction of wave XA. BC price movement is an extension of AB price movement. While CD is an extension of wave BC.

Point B is a mimum of 0.382 to a maximum of 0.886 retracement of impulsive wave XA. Point C is a minimum of 1.13 to a maximum of 1.618 extension of wave AX. Point D is a minimum of 0.886 to a maximum of 1.13 retracement/extension of XA. The short position is usually entered at point D after bearish price action is confirmed (that is, waiting for the price to start a downward movement).

For the Bullish Shark pattern, BA price movement is the correction of XA. BC price movement is an extension of AB price movement, while CD price movement is an extension of wave BC.

Also, Point B on Bullish Shark pattern is a minimum of 0.382 to a maximum of 0.886 retracement of impulsive wave XA. Point C is a minimum of 1.13 to a maximum of 1.618 extension of wave AX. Point D is a minimum of 0.886 to a maximum of 1.13 retracement/extension of XA. The long position is usually entered at point D after bullish price action is confirmed (that is, waiting for the price to start an upward movement).

 

Cypher Pattern (Wave A to D is correction-extension-extension)

Harmonic

 

Analyzing the Bearish Cypher pattern, wave BA is the correction of wave XA. Wave BC is an extension of wave AB. While CD is an extension of wave BC.

Point B is a minmum of 0.382 to a maximum of 0.618 retracement of impulsive wave XA. Point C is a minimum of 1.13 to a maximum of 1.41 extension of wave AX. Point D is 0.786 retracement of XA. A short position is usually entered at point D after bearish price action is confirmed (that is, waiting for the price to start a downward movement).

For the Bullish Cypher pattern, wave BA is the correction of wave XA. Wave BC is an extension of wave AB. While CD is an extension of wave BC.

Also, Point B on Bullish Cypher is a minimum of 0.382 to a maximum of 0.618 retracement of impulsive wave XA. Point C is a minimum of 1.13 to a maximum of 1.41 extension of wave AX. Point D is 0.786 retracement of XA. A long position is usually entered at point D after bullish price action is confirmed (that is, waiting for the price to start an upward movement).

AB=CD Pattern

Harmonic

Analyzing the Bearish ABCD pattern, wave BC is the correction of wave AB. While CD is an extension of wave BC.

Point C is a minimum of 0.618 to a maximum of 0.786 retracement of impulsive wave AB. Point D is a minimum of 1.27 to a maximum of 1.618 extension of BC. The short position is usually entered at point D after bearish price action is confirmed (that is, waiting for the price to start a downward movement).

For the Bullish ABCD pattern, wave BC is the correction of wave AB. While CD is an extension of wave BC.

Point C is a minimum of 0.618 to a maximum of 0.786 retracement of impulsive wave AB. Point D is a minimum of 1.27 to a maximum of 1.618 extension of BC. The long position is entered at point D after bullish price action is confirmed (that is, waiting for the price to start an upward movement).

How To Identify Harmonic Patterns At The Start

HarmonicHarmonicHarmonic

Harmonic

 

EURGBP

Harmonic

 

 

Caution: Forex trading is risky. It is advisable that you acquire enough experience before you start to trade with real money. Do not invest in money that you cannot afford to lose (it is important that you study leverage, lot size, and money management in Forex trading very well before you execute your trade decision).

To trade in the Forex Market you must first sign up with a Forex Broker. There are lots of Forex Brokers out there that offer good service to their clients. Services include tight spread, partnership amongst others. My preferred brokers are 1. Alpari (https://alpari.com/en/?partner_id=1244646) and 2. FXTM (http://forextime.com/?partner_id=4806145). You may sign up through any of the partner links above. You may also send me a mail in case you need me to guide you on how to sign up and start trading (beanfxtrader@gmail.com).

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