Young Ho Seo / Profil

Must Read Articles for Professional Harmonic Pattern Trader

Here is the short but insightful article for Harmonic Pattern Trader. This article will explain type of Harmonic Pattern indicators and the technology around the harmonic pattern detection algorithm. If you are professional trader, then you must read these three articles before trading with them.

1) Turning Point and Trend: https://algotrading-investment.com/2019/07/06/turning-point-and-trend/

2) Pattern are good predictor of Market Turning Point: https://algotrading-investment.com/2019/07/07/patterns-are-the-good-predictor-of-market-turning-point/

3) Harmonic Pattern Indicator Types: https://algotrading-investment.com/2019/03/15/harmonic-pattern-indicator-types/

Throughout these articles, we also emphasize the importance of estimating true success rate for harmonic pattern to build the winning trading strategy.

Also below we provide the links for the automated Harmonic Pattern Detection indicator.

4) Harmonic Pattern Scenario Planner

https://www.mql5.com/en/market/product/6101

https://www.mql5.com/en/market/product/6240

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

5) X3 Chart Pattern Scanner

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

https://www.mql5.com/en/market/product/41992

https://www.mql5.com/en/market/product/41993

How to Ride the Price Swing or Fractal Wave in Forex – Must Read

In this short article, we will share some practical tips to ride the price swings (or Fractal wave) in Forex and Stock market. Please read this article for your own good as it does not cost you anything. Forex trading is basically the decision making process over the market entry and exit. The most important variable you need to watch is the price. You need to watch how the price evolves with time. Hence, we will share the best way to calculate the market timing.

Step 1: open the chart. This is the first requirement for any trading. You need to see the price to learn what is going on in the market. Especially, when you apply the peak trough analysis in your chart, you will see lowest and highest points marked automatically. This lowest and highest points are basically the price swings happened in the past. You need use these price swings to read the market rhythm before making your trading decision.

Step 2: Look for the important horizontal support and resistance or diagonal support and resistance. In this example, we have drawn the horizontal support line for the visual illustration of this process. Marking up the support and resistance is simple task with peak trough analysis in your chart. Never underestimated them. It can takes as little time as 2 to 3 minutes to draw one or two important lines.

Step 3: Here is the most important part. As in our example, the price is heading to the horizontal support line, we need to assess how risky to take the reversal or breakout trading around this horizontal support line. Now we apply our turning point probability graph to assess our opportunity for reversal or breakout. Turning point probability will be measured between the point A and the point B. That is one price swing or fractal wave. Now let us have a look at the number.

From the turning point probability graph, at the point B, we can tell the followings:

the turning point probability in price is 38%
turning point probability in time is 37%
In another words, at the point B, we can tell the followings:

the trend probability in price is 62% (1 – 38%)
trend probability in time is 63% (1 – 37%)
Interpreting this probability, we can tell that the current price level is little bit immature to expect the reversal movement. If price go down further and it touches the horizontal support line, then we can tell the followings:

the turning point probability in price is 45%
turning point probability in time is unknown now. Depending on how fast or slowly price come down, it might go over 50%.
In Step 3 analysis, there are two important points for you to understand. Firstly, this trading opportunity is not entirely favoring the reversal trading. There are some cases which your chance for reversal trading is much higher comparing to the breakout trading chance. The step 3 analysis will usually help you to find out that. Secondly, since the certainty is not too high, this recommends you to position size carefully. In another words, you need to think about the mild position size rather than the big position size. Even more simply speaking, reduce the lot size for your forex trading. Then depending on the surrounding market condition, you can conditionally increase or reduce the position size. Checking the surrounding market condition is the final check up. If the surrounding market condition is not favoring your trading direction, it is good to skip this opportunity.

In long run, we recommend you to follow step 1, step 2 and step 3. Especially, step 3 is the most important analysis as you have the opportunity to access your risk in your trading. Typically, visualizing one’s trading decision is not an easy task. Hence, this article is not meant to provide the exhausted list of the analysis steps but use as only some base guideline. We hope you enjoy this short practical guideline. There are more educational articles in this link below.

https://algotrading-investment.com/2019/07/23/trading-education/
https://algotrading-investment.com/2020/04/26/metatrader-and-optimum-chart-manuals/
For the time being, there are only two tools that can measure the turning point probability in price and time. First one is the Fractal Pattern Scanner for MetaTrader 4 and MetaTrader 5. Second one is the Optimum Chart.

Below is the landing page for Fractal Pattern Scanner in MetaTrader version.

https://www.mql5.com/en/market/product/49170

https://www.mql5.com/en/market/product/49169

https://algotrading-investment.com/portfolio-item/fractal-pattern-scanner/

The screenshot is massive. Sorry for the downloading time.

Scan and search future harmonic patterns with Harmonic Pattern Scenario Planner

Harmonic Pattern Scenario Planner is a tool you can scan and search future harmonic patterns in just one button click. It would detect any potential future harmonic patterns in your search range using the algorithm like Monte Carlo simulation. You can even get the potential take profit and stop loss of the future patterns even before they form. What is even more, you can use all the features and functionality of harmonic pattern plus from your harmonic pattern scenario planner too.

Have watched this interesting movie called “Next” ? Check out the guy can see the few minutes into the futures. How powerful the 2 minutes vision for future is. Predicting future is very tactical game but it is hard because future keep changing based on the presents. However, it is definitely an interesting game. As a trader, you can gain a lot of advantage over other traders by predicting futures.

http://www.imdb.com/title/tt0435705/

This movie like predicting concept was equipped in our Harmonic Pattern Scenario Planner. check the power of predictive harmonic pattern for your trading. We are only one selling this future predictive harmonic pattern scanner in the universe.

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

https://www.mql5.com/en/market/product/6101

https://www.mql5.com/en/market/product/6240

Pattern Completion Interval and Basic Order Management for harmonic Pattern Trading

Many harmonic pattern trader uses arbitrary order management. Some just uses Fibonacci levels but they are not able to measure or think how each winning and losing trades can affect their trading balance. You do need to know this to grow your capital safely. Risk and Order management is not the concept you can skip regardless of your trading strategy and signals.

Pattern Completion Interval is the concept, first introduced in the Book (Guide to Precision Harmonic Pattern Trading), to help you to trade with harmonic pattern in more scientific Risk management. Here is the link to the Book: Guide to Precision Harmonic Pattern Trading.

https://algotrading-investment.com/portfolio-item/guide-precision-harmonic-pattern-trading/

Especially, it helps you to achieve the desired Reward/Risk ratio while you are trading in real time tick by tick data. Here is one of many approaches how you may use the Pattern Completion Interval concept for your trading. Of course, this approach is compatible with your Harmonic Pattern Plus and Harmonic Pattern Scenario Planner. We produce this diagram so you can understand this approach intuitively without any calculator in your hands. Tr = Take Profit Ratio and Sr = Stop Loss Ratio. The diagram shows the case of two orders but you can even generate more orders taking this example further. Hopefully this new diagram is easier to understand than previous one.

Of course, this precision trading frame work is applicable to our Harmonic Pattern Indicator ranges including Harmonic Pattern Plus and Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner.

https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

Trend Probability in Forex and Stock market trading

In this article, we will introduce the trend probability for your Forex and Stock market trading. When the turning point probability is high, we can expect the turning point to arrive within the fractal cycle. Like the margin of safety described by Benjamin Graham, it is safe to use the turning point probability in conservative manner. We should only look for the turning point within the higher probability area. The margin of safety will tell that higher turning point probability is safer to predict the turning point. On the other hand, we can look for the breakout opportunity or we can expect the price to move in the same direction within the lower turning point probability area. We can consider the trend probability providing the opposite concept of the turning point probability. In a simple math, we can derive the trend probability by subtracting the turning point probability from one like “1.0 – the turning point probability”. Or if you prefer the percent, we can derive the trend probability by subtracting the turning point probability (%) from one hundred percent like “100% – turning point probability (%)”. Since the turning point probability is drawn from the peak trough transformation directly, the conversion of the trend probability from the turning point probability should be taken as the rule of thumb guideline for your trading. As in the turning point probability, the margin of safety will tell that higher trend probability is safer to predict the breakout or price continuation. This information was taken from the book: Science Of Support, Resistance, Fibonacci Analysis, Harmonic Pattern, Elliott Wave and X3 Chart Pattern (In Forex and Stock Market Trading). This book will provide the scientific rational for chart patterns, connection with economics, chart pattern detection examples, how to use them and how to improve them in Forex and Stock market.

The book can be found in all the major book distributors in the world. Please choose the best book distributor you like from the link below including amazon.com, Google Play Book, scribd.com, Apple Book and so on.

https://www.scribd.com/book/515253555/Science-Of-Support-Resistance-Fibonacci-Analysis-Harmonic-Pattern-Elliott-Wave-and-X3-Chart-Pattern

https://algotrading-investment.com/portfolio-item/science-of-support-resistance-fibonacci-analysis-harmonic-pattern/

https://www.amazon.com/dp/B0993WZGZD

https://play.google.com/store/books/details?id=MME3EAAAQBAJ

To present the turning point probability in Forex and Stock Market, we have devised the simple turning point probability graph. When we predict the peak, in the probability graph, Y axis (=the left axis) indicates the turning point probability in price dimension and X axis (= the bottom axis) indicates the turning point probability in time dimension. The probability ranges from 0.0 (=0%) to 1.0 (=100%). Typically, there is no practical application making use of 100% probability in the world. Since our calculation is based on the price data only (i.e. empirical probability), we recommend using 90% probability or less for the maximum probability. For example, even if the price stays above the 90% probability, it is better to treat them as 90% or less depending on how conservative your trading style is.

You have the full access to the turning point probability and trend probability from Fractal Pattern Scanner to improve your Forex and Stock Market Trading. As it was suggested from the book, the display probability in the Fibonacci Probability Graph is the turning point probability. You will use the turning point probability to gauge the trend probability as it was guided from the book. Please have a look at the indicator. Of course, you have this tool built in our Optimum Chart too.

Below is the landing page for Fractal Pattern Scanner in MetaTrader version.

https://www.mql5.com/en/market/product/49170

https://www.mql5.com/en/market/product/49169

https://algotrading-investment.com/portfolio-item/fractal-pattern-scanner/

Harmonic Pattern Signal – Free

Harmonic Pattern Trading Signal provides a mean of detecting the turning point in the market. It is one way to solve the puzzle of market geometry, which is often not solvable with other technical indicators. Especially, we provide the Harmonic Pattern Signal for your trading. It is absolutely free of charge. The Harmonic Pattern Signal can be accessible from the link below.

https://algotrading-investment.com/2020/12/17/harmonic-pattern-signal-for-forex-market/

We present the trading signal in the simple table form. To use this trading signal, you need to mark up the location of the Harmonic Pattern in your chart. You can do this in any trading platform including MetaTrader, Trading View, Ninja Trader and so on. Follow the two steps below:

Open the Chart with the same timeframe shown in the table
Mark up the pattern location using Price at Point D and Date at Point D
That is all. Check the attached screenshot and more detailed Instruction can be found from the above link. Our Harmonic Pattern Trading signal is absolutely free. It is a good staring point for anyone who are interested in trading Forex market. At the same time, we provide the MetaTrader 4 and MetaTrader 5 version of Harmonic Pattern Scanner. If you prefer the indicator version of Harmonic Pattern Signal, then you can visit the product page for Harmonic Pattern Plus or X3 Chart Pattern Scanner.

Below are the Links to Harmonic Pattern Plus

https://www.mql5.com/en/market/product/4488

https://www.mql5.com/en/market/product/4475

https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/

Below are the Links to X3 Chart Pattern Scanner.

https://www.mql5.com/en/market/product/41993

https://www.mql5.com/en/market/product/41992

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

Supply Demand Zone Indicator on MetaTrader 4

MetaTrader 4 is one of the most popular trading platform since 2010. It is accessible for free of charge for any trader from all over the world. We provide a range of powerful supply demand zone indicator particularly designed for MetaTrader 4 platform.

Here is the list of Advanced Supply Demand Zone Indicator. These supply and demand zone indicators are rich in features with many powerful features to help you to trade the right supply and demand zone to trading.

Mean Reversion Supply Demand on MetaTrader 4

Mean Reversion Supply Demand indicator is our earliest supply demand zone indicator and loved by many trader all over the world. It is great to trade with reversal and breakout. You can also fully setup your trading with stop loss and take profit target. Please note that Mean Reversion Supply Demand is the excellent tool but it is repainting supply demand zone indicator.

Below are the links to MetaTrader 4 version of the Mean Reversion Supply Demand indicator.

https://www.mql5.com/en/market/product/16851

https://algotrading-investment.com/portfolio-item/mean-reversion-supply-demand

Ace Supply Demand Zone Indicator on MetaTrader 4

Ace Supply Demand Zone indicator is our next generation supply demand zone indicator. It was built in non repainting and non lagging algorithm. On top of many powerful features, you can also make use of archived supply and demand zone in your trading to find more accurate trading opportunity. Ace Supply Demand Zone indicator is the non repainting supply demand zone indicator. If you prefer the non repainting indicator, then you must use Ace Supply Demand Zone Indicator.

Below are the links to MetaTrader 4 version of the Ace Supply Demand Zone indicator.

https://www.mql5.com/en/market/product/40076

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone

For your information, both indicators provides many powerful features to complete for your trading. You can also use this indicators together with harmonic pattern and elliott wave pattern indicators.

Trading Chart Patterns in Forex and Stock Market

Chart patterns are the essential price analysis for Forex and Stock market trading as the price is the single most important variable in the market. You can not miss to study the price, even it is very basic one. No one would attempt to trade without seeing the price itself. When you use the chart patterns wisely as the timing tool, it will often reward you more than people who does not use them. Chart patterns include support, resistance, Fibonacci Analysis, harmonic pattern, Elliott Wave, X3 Chart pattern, triangles, rising wedge, falling wedge pattern, channels and many more. Your next question would be why they are so important for our trading and how to use them in our trading. This is rather not short story to be packed in this single article. We can only tell where you can find such a guidance using the chart patterns in Forex and Stock market. The book: Science Of Support, Resistance, Fibonacci Analysis, Harmonic Pattern, Elliott Wave and X3 Chart Pattern (In Forex and Stock Market Trading) is exactly the book dedicated for this topic. This book will provide the scientific rational for chart patterns, connection with economics, chart pattern detection examples, how to use them and how to improve them in Forex and Stock market.

The book can be found in all the major book distributors in the world. Please choose the best book distributor you like from the link below including amazon.com, Google Play Book, scribd.com, Apple Book and so on.

https://www.scribd.com/book/515253555/Science-Of-Support-Resistance-Fibonacci-Analysis-Harmonic-Pattern-Elliott-Wave-and-X3-Chart-Pattern

https://algotrading-investment.com/portfolio-item/science-of-support-resistance-fibonacci-analysis-harmonic-pattern/

https://www.amazon.com/dp/B0993WZGZD

https://play.google.com/store/books/details?id=MME3EAAAQBAJ

Learning the geometric shape of the price patterns might be not sufficient to apply them well in the financial market. If we understand why the price patterns exist in the financial market, we can use them more accurately. Hence, it is important to understand the underlying science behind the price patterns. In doing so, we need to understand the trend and cycle. Then we need to see the connection of fractal wave with trend and cycle. Finally, when we recognize the fractal wave as the superior analytical method to the existing methods, we will understand why price patterns were used in the financial market over 100 years. With understanding of the turning point in connection with economics, this can advance your knowledge and practice for your day trading and investing.

In addition, we provide the automated chart pattern scanner for the harmonic patterns, triangle and wedge patterns respectively. The automated chart pattern scanner helps you to detect some repeating chart patterns automatically. They are the convenient tool to use after you have understood how the chart patterns works for your trading.

1. Advanced Price Pattern Scanner (Triangle + Wedge patterns + others)

Advanced Price Pattern Scanner is the non repainting pattern scanner designed for both MetaTrader 4 and MetaTrader 5. It can detects many important price patterns for your trading like rising wedge, falling wedge, head and shoulder patterns, Cup and Handle, etc. Here is an intro video for Advanced Price Pattern Scanner from YouTube. Please check it out.

https://algotrading-investment.com/portfolio-item/advanced-price-pattern-scanner/

https://www.mql5.com/en/market/product/24679

https://www.mql5.com/en/market/product/24678

1. X3 Chart Pattern Scanner (Harmonic Pattern + X3 Chart Pattern)

X3 Chart Pattern Scanner is next generation tools to trade with X3 price patterns in Forex market. With non repainting and non lagging algorithm, this tool can detect with advanced Harmonic Pattern, Elliott Wave Pattern, X3 Pattern structure for your trading. As a bonus, it provides your Japanese candlestick patterns too. X3 Chart Pattern Scanner is type 4 harmonic pattern indicator, which means that you can fine tune your strategy using historical patterns while you are trading the same patterns on live trading.

https://www.mql5.com/en/market/product/41993

https://www.mql5.com/en/market/product/41992

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

For your information, the attached screenshot shows the advanced price pattern scanner.

Combining Price Breakout Pattern with Support and Resistance

Price Breakout Patterns are in fact the extension of support and resistance trading. When you grab the idea of support and resistance with Price Breakout Patterns, you can really advance your trading a lot. With Price Breakout Pattern Scanner, this is easy task because it provide the built in support and resistance mode.

In the support and resistance mode, your price breakout patterns will be turned into support and resistance. In doing so, you need to set support and resistance mode in your input setting. We will show this in our screenshot.

Once this setup is in place, Price Breakout Pattern will become support and resistance for your trading. With conventional support and resistance together, this could indicate highly probable trading entry.

Below is the YouTube Video link for Price Breakout Pattern Scanner:

YouTube Video Link: https://www.youtube.com/watch?v=aKeSmi_Di2s

Below are the links to Price breakout Pattern Scanner

https://www.mql5.com/en/market/product/4859

https://www.mql5.com/en/market/product/4858

https://algotrading-investment.com/portfolio-item/price-breakout-pattern-scanner/

Using Harmonic Pattern Plus and X3 Chart Pattern Scanner Together

Harmonic Pattern Plus and X3 Chart Pattern Scanner are the great harmonic pattern detection indicator. Some trader asked me if they can use Harmonic Pattern Plus and X3 Chart Pattern Scanner together.

The short answer is yes. It is possible to combine them. Even though both indicators detect harmonic patterns, they are using completely different pattern detection algorithm. Harmonic pattern Plus uses the classic pattern detection algorithm whereas X3 Chart Pattern Scanner uses non repainting pattern detection algorithm (i.e. latest pattern detection technology).

There can be some overlapping in the detected patterns. However, many patterns can be detected in different timing. If both indicator detect the same patterns, then the patterns are often more accurate. At the same time, with non overlapping patterns, you have less chance to miss out the good signals.

When you want to use the channel function together with Harmonic Pattern, then use the channel function in X3 Chart Pattern Scanner because it is more advanced version.

Of course, the same logic applies to Harmonic Pattern Scenario planner.

Link to Harmonic Pattern Plus

https://www.mql5.com/en/market/product/4488

https://www.mql5.com/en/market/product/4475

https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/

Link to X3 Chart Pattern Scanner

https://www.mql5.com/en/market/product/41993

https://www.mql5.com/en/market/product/41992

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/