Young Ho Seo / Profil

Tutorial Using Excessive Momentum and Fibonacci Ratio Analysis

With Excessive Momentum Indicator, you can access to the automatic Fibonacci Ratio Analysis. Combining these two powerful trading system are the excellent ways to trade in Forex market. In this article, we will show you how to combine both with step by step guide.

When there is an unexpectedly long bearish and bullish price movement, the indicator will detect these excessive momentum area for your trading. This excessive momentum zone are often the true accumulation and distribution area in the Volume Spread Analysis. What does this mean for your trading ?This means that entry around this excessive momentum area can provide you the great advantage that favors your Reward and Risk for your trading whether they are breakout trading or reversal trading. The indicator provides such a great opportunity automatically.

In addition, Fibonacci retracement level can provide further idea about when the price can move according to our expectation. To call the Fibonacci retracement level automatically, simply click on the circle at the Excessive Momentum Zone. Then it will place the Fibonacci retracement level automatically in your chart. The thing is that the placed Fibonacci Retracement level might be too short in its width. Sometime, you want to project the Fibonacci Retracement level far right to see the price action around the retracement level. It is doable too.

To do so, double click on the Fibonacci retracement object in your chart. Then you will see the three anchor points in the retracement object. Drag the right anchor point to the right. You can drag them as far as you want to cover the chart area at your interest. Please check the screenshot attached to complete this tutorial.

This Excessive Momentum Zone can be considered as either Accumulation or Distribution area in the Volume Spread Analysis. You can further find the symptoms of accumulation and distribution area using our Volume Spread Pattern Indicator (Paid and Advanced version) or Volume Spread Pattern Detector (Free and Light version). You can watch the YouTube videos to find more about the Excessive Momentum Indicator.

YouTube Video Momentum Indicator: https://youtu.be/oztARcXsAVA

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Here is link to Excessive Momentum Indicator.

https://algotrading-investment.com/portfolio-item/excessive-momentum-indicator/

https://www.mql5.com/en/market/product/30641

https://www.mql5.com/en/market/product/30621

With Excessive Momentum indicator, you can use our Free Volume Spread Pattern Detector. Volume Spread Pattern Detector is a great free tool to complete your Volume Spread Analysis to detect Accumulation and Distribution. Or even you can use them to detect important support and resistance for your trading too. Here is the link to the free Volume Spread Pattern Detector.

https://www.mql5.com/en/market/product/28438

https://www.mql5.com/en/market/product/28439

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-detector/

In addition, Volume Spread Pattern Indicator is the more advanced version of Volume Spread Pattern Detector. If you want to improve your trading performance even more, then we recommend using Volume Spread Pattern Indicator. This is not free indicator but it is affordable. Here is the link to the Advanced Volume Spread Analysis indicator.

https://www.mql5.com/en/market/product/32961

https://www.mql5.com/en/market/product/32960

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-indicator/

Trading Risk with Pattern Completion Zone (PCZ)

Trading risk management is the first important concept for techncial analysis. This article provides the trading risk management concept with Pattern Completion Zone. Depending on your knowedge on the trading risk management, you can grow your capital safely. When you do not have knolwedge about it, it is likely that high volatility will wipe your capital away. You can lose a lot of money in the big price swing without the knoweldge of the trading risk management. Harmonic Pattern Plus, Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner provide the Pattern Completion Zone, specially desinged to help managing your trading risk.

Sounds complicated but not. Simply, if the price is inside the PCZ box, then the pattern will stay alive. If the price move outside the PCZ box, then the pattern is invalid. We brought this concept from prediction interval or confidence interval from multiple regression techniques. Then we created the Pattern Completion Zone concepet specifically working for the trader using the chart patterns like Harmonic Pattern, Elliott Wave Pattern and X3 Chart Pattern.

Maybe it is the view you need to see not the technical language. It is the PCZ box that you can calculate your entry + your risk management. Inside PCZ, your can pick up the good timing for your entry based on your risk management. When everything happens inside PCZ, your reward/risk can favour your trading.

Secondly you might need to use some secondary confirmation for final buy and sell decision. Remember the very advantage of manual trading is about combining information. It does not have to be fundamental data for this purpose. In our case, we exclusively uses geometric based tools and we have nearly got rid of all the technical indicator for trading. But you can use some technical indicator like RSI, Bollinger bands and Fibonacci Retracement etc.

Once you are sure about the trading and entry and risk management, then you can lock the pattern for your trading. Just click the lock button in your chart to do so. Harmonic Pattern Plus, Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner supports Pattern Completion Zone for your entry and exit management. At the same time, the Pattern Completion Zone is like other trading zone. Hence, you can also use the pattern completion zone like support and resistance.

Now you might be curious where you can meet the tools providing the Pattern Completion Zone mentioned in this article. Here are the links for the three Chart Pattern Scanner developed in MetaTrader 4 and MetaTrader 5 platform.

Harmonic Pattern Plus is a repainting but powerful pattern scanner with tons of professional features. It also provides the pattern completion zone to manage your trading risk.

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

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

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

Harmonic Pattern Scenario Planner is a repainting but predictive pattern scanner. It is the most advanced Harmonic Pattern Scanner available in the market. Of course, it comes with tons of professional features too. It also provides the pattern completion zone to manage your trading risk.

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

X3 Chart Pattern Scanner is the non repainting and non lagging Harmonic Pattern and Elliott Wave pattern. This pattern scanner provide you a lot of advantage for your trading from its non repainting and non lagging pattern detection algorithm. This is our next generation chart pattern scanner. At the same time, you can customize each pattern structure to find the most optimal trading entry and exit. It also provides the pattern completion zone to manage your trading risk.

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

Advanced Harmonic Pattern Detection Indicator for MetaTrader 5

Harmonic Pattern Scenario Planner is an advanced Harmonic Pattern Detection Indicator. This is probably the most sophisticated harmonic pattern detection indicator for MetaTrader 5 platform. MetaTrader 5 is the next generation trading platform developed by Meta Quote who developed MetaTrader 4. MetaTrader 5 is accessible for free of charge for any trader from all over the world. More and more brokers are now offering MetaTrader 5 trading options even including US based firms.

If you want to avoid any complex feature, then Harmonic Pattern Scenario planner can be used like Harmonic Pattern Plus. Hence, it is easy and friendly to use. At the same time, if you do not mind more advanced features, then it combines powerful Monte Carlos Simulation to provide you advanced harmonic pattern search capability. This feature is the most unique feature provided from Harmonic Pattern Scenario Planner. Monte Carlo Simulation can help you to find future reversal points in advance.

For your information, we provide two YouTube videos with title and links below. Although these two videos are not created using the Harmonic Pattern Scenario Planner, you can watch the YouTube Video to feel what is the automated harmonic pattern indicator like.

YouTube “Harmonic Pattern Indicator”: https://youtu.be/CzYUwk5qeCk

YouTube “Non Repainting Non Lagging Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ

Here is the product link to Harmonic Pattern Scenario Planner for MetaTrader 5. You can find more about the features of this advanced Harmonic Pattern Scenario Planner. Let your MetaTrader 5 to be equipped with this cutting edge technology.

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

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

Intro Video for Advanced Price Pattern Scanner

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 the YouTube Video titled as “Intro Video to Advanced Price Pattern Scanner”. This video covers some basic operation with Advanced Price Pattern Scanner in MetaTrader.

Advanced Price Pattern Scanner YouTube Video: https://www.youtube.com/watch?v=A1-IUr6u5Tg

In addition, you can watch the following YouTube Video to understand why price pattern is so important for your technical analysis.

Fractal to Advanced Technical Analysis YouTube Video: https://www.youtube.com/watch?v=RiTsWthvxfA

Below is the direct link to Advanced Price Pattern Scanner. As usual, we provide it for both MetaTrader 4 and MetaTrader 5 platforms.

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

Pattern Completion Zone VS Potential Reversal Zone

In previous chapter, we have described the Pattern Completion Zone, also known as Pattern Completion Interval, in details. Now many harmonic pattern trader can be curious how the Pattern Completion Zone (PCZ) is different from the Potential Reversal Zone (PRZ). In first place, as the PCZ and PRZ are derived from different process, they are different tool to trader. Having said that, the deriving process for PCZ and PRZ might be too complicated causing some traders to confuse the concept of each other. For this reason, we will clarify the difference by directly comparing PCZ and PRZ look. Let us look at the Potential Reversal Zone. So what is Potential Reversal Zone? Simply speaking potential Reversal zone is the area where three or four Fibonacci levels are converging together. Potential Reversal Zone can be used to detect the final Point D of the Harmonic Pattern by projecting several Fibonacci retracements respectively from the point X, A, B and C. The area of the Potential Reversal Zone can be defined by the top and the bottom projected levels in the all projected levels as shown in Figure 5-1.

The main difference between PCZ and PRZ is that Pattern Completion Zone forms the strict Symmetrical Trading Zone around the ideal Point D (Figure 5-3 and Figure 5-4). The Potential Reversal Zone (PRZ) does not form the symmetrical zone. However, the PRZ area formation is dependent on the location of each Fibonacci level projections as shown in Figure 5-1 and Figure 5-2. Sometime PRZ area can form the symmetrical trading zone but it is only by chance. Most of time, Potential Reversal Zone will not form the symmetrical trading zone. On the other hands, Pattern Completion Zone will strictly form symmetrical trading zone for every harmonic pattern. Due to this symmetrical property of the Pattern Completion Zone (= Pattern Completion Interval), trader can use many different trading strategies around the symmetrical trading zone beyond the classic harmonic pattern trading setup. With Pattern completion Zone, you can expand your classic trend reversal entry to hedging and breakout trading by setting identical but opposite trading. For example, for bullish Harmonic Pattern formation, you are able to setup the buy and sell hedging positions or straddle breakout setup around the Pattern Completion Zone. This is possible because the Pattern Completion Zone provides the median open price, which can be mirrored around the Ideal Point D.

In addition, Pattern Completion Zone provides you the direct numerical description corresponding to the size of the Harmonic Pattern. Therefore, the size of symmetrical trading zone around the Pattern Completion Zone is a sensible measurement for your stop loss and take profit for each Harmonic Pattern. Especially, once you have mastered the Pattern Completion Zone for your trading, you can gauge your Reward/Risk Ratio with real time market data without the need of any other additional tools. You can expand this with limit and stop order for better managing your order and risk. Overall, Pattern Completion Zone can provide you precise and fast decision-making process for your Harmonic Pattern Trading. In next chapter, we will continue to show you how the symmetrical trading zone works to manage your order and risk in details.

If you want to access automated Harmonic Pattern Detector, then you can also buy the Harmonic Pattern Plus or X3 Chart Pattern Scanner available in MetaTrader 4 and MetaTrader 5. In Harmonic Pattern Plus, you can access many additional features on top of the harmonic pattern trading signals. For example, you can also access Advanced Channel and around 52 Japanese candlestick pattern. It will also draw the Pattern Completion Interval automatically in your chart helping you to set your stop loss and take profit targets. It is a repainting indicator but it comes at the affordable price.

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/

If you need more advanced one than Harmonic Pattern Plus, then you can use our X3 Chart Pattern Scanner. X3 Chart Pattern Scanner is the non repainting and non lagging Harmonic Pattern and Elliott Wave Pattern Scanner with multiple of advanced features. You can even customize the patterns you want to detect by changing their pattern structure. At the same time, you can use both repainting and non repainting Harmonic Pattern Indicator together. This means that you can combine to use Harmonic Pattern Plus with X3 Chart Pattern Scanner if you wish.

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/

You can read Guide to Precision Harmonic Pattern Trading to understand more about the Harmonic Pattern Strategy.

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

Trade with Regularity in the Financial Market

We trade or we can trade because there are regularities in the financial market. What exactly this means to our trading and investment ? It means that no one will trade if the market was totally random. We are always looking for the regularity that is repeating over time whether it is called a trend, cycle, seasonality or fractal wave. Our profit is merely materialization of these regularities in the financial market. We materialize them using our trading strategy. Hence, understanding the important regularities can bring the profit opportunity in the financial market. However, how to organize or how to visualize the different types of regularity existing in the financial market ? Here is one efficient way to organize the most important five regularities in the financial market that you should know for your trading and investment. Full details about the five regularities can be found in the book “Scientific Guide to Price Action and Pattern Trading”. In the book we reveals the trading ideas, strategy and practice to create the profit opportunity in the financial market.

Among the five regularities, Fractal Wave is the most sophisticated regularity that combines the other four regularities. Then now, you might ask a question like “how can we understand this Fractal Wave ?” You have the right question indeed. To understand any concept, the first thing we need to do is to visualize them. Since we want to use this Fractal Wave for our trading, the best practice is to visualize them in the Forex and Stock chart. In the book, we explained the process as the Peak Trough Analysis. The Peak Trough Analysis can help you to visualize the Fractal Wave for Forex and Stock data. Once, you visualized the Fractal Wave using the Peak Trough Analysis, we can create practical trading strategy, technical analysis and technical indicator needed to predict the financial market. This can include Support, Resistance, Fibonacci Analysis, Harmonic Pattern, Elliott Wave, X3 Chart Pattern, Supply Demand Analysis and so on.

Scientific Guide to Price Action and Pattern Trading:

https://algotrading-investment.com/portfolio-item/scientific-guide-to-price-action-and-pattern-trading/

You can also have a look at the Technical Indicator, Chart Pattern Scanner, Harmonic Pattern Indicator and Elliott Wave Counting Tool, Fractal Wave Analytics, Support Resistance Indicator, Supply Demand Analysis and so on, created based on the market prediction principle using Fractal Wave Theory.

https://algotrading-investment.com/

https://www.mql5.com/en/users/financeengineer/seller#products

Powerful Non Repainting Supply Demand Zone MetaTrader Indicator

Ace Supply Demand Zone is the non-repainting Supply Demand indicator. This supply demand indicator is very useful to trade with the market turning point. Its trading strategy is based on the price pattern detection like Drop-Base-Rally, Rally-Base-Drop and so on. Since you have an access to fresh supply and demand zone as well as the historical supply demand zone, you can achieve much better profiling on price movement in Forex market. In addition, the trading zone idea provides you an excellent way of managing your trading risk. This is really useful if you have at least learnt how to use the support and resistance trading, which is the most popular technical analysis in Forex and Stock market.

With the Ability to trade the original supply demand zone trading, you can also perform highly accurate Angled Supply Demand zone trading as a bonus. With a lot of sophisticated gadgets built inside, Ace Supply Demand Zone indicator will provide you unmatched performance against other Supply Demand zone indicator out there.

Here is the link to Ace Supply Demand Zone Indicator.

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

https://www.mql5.com/en/market/product/40075

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

In addition, we provide the YouTube video for Ace Supply Demand Zone Indicator. In terms of indicator operation, both mean reversion supply demand and ace supply demand zone indicator are similar. Hence, you can watch this YouTube Video to accomplish the supply demand zone indicator.

YouTube “Supply Demand Zone Indicator”: https://youtu.be/lr0dthrU9jo

Advanced Harmonic Pattern Detection Indicator

Harmonic Pattern Scenario Planner is an advanced Harmonic Pattern Detection Indicator. This is probably the most sophisticated harmonic pattern detection indicator in the market. It can detect many harmonic patterns at the price revesal like Gartley Pattern, Butterfly Pattern, Bat pattern and so on. At the same time, you can forsee future harmonic patterns in the price range by just one button click. You can make precision buy and sell entry with the detected harmonic patterns. You can find this indicator for both MetaTrader 4 and MetaTrader 5, which is the most popular trading platform for Forex and Futures.

If you want to avoid any complex feature, then Harmonic Pattern Scenario planner can be used like Harmonic Pattern Plus. Hence, it is easy and friendly to use. At the same time, if you do not mind more advanced features, then it combines powerful Monte Carlos Simulation to provide you advanced harmonic pattern search capability. This feature is the most unique feature provided from Harmonic Pattern Scenario Planner. Monte Carlo Simulation can help you to find future reversal points in advance.

For your information, we provide two YouTube videos with title and links below. Although these two videos are not created using the Harmonic Pattern Scenario Planner, you can watch the YouTube Video to feel what is the automated harmonic pattern indicator like.

YouTube “Harmonic Pattern Indicator”: https://youtu.be/CzYUwk5qeCk

YouTube “Non Repainting Non Lagging Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ

Here is the product link to Harmonic Pattern Scenario Planner. You can find more about the features of this advanced Harmonic Pattern Detection Indicator from the landing page below.

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

Volume Spread Analysis Indicator List

We provide three different Volume Spread Analysis indicators and volume based tools. Our volume spread analysis tools are the hybrid of volume spread analysis and signal processing theory.

These tools will help you to complete your trading decision with high precision. As long as you understand the concept of the Accumulation and Distribution area in the volume spread analysis, these tools will help you to predict the presence of Accumulation and Distribution area. Hence, you can predict the best trading opportunity.

Firstly, Volume Spread Pattern Indicator is the powerful volume spread analysis indicator that operated across multiple timeframe. Volume Spread Pattern Indicator will not only provide the bearish and bullish volume spread pattern in the current time frame but also it will detect the same patterns across all timeframe. You just need to open one chart and you will be notified bullish and bearish patterns in all timeframe in real time.

Here is the link to Volume Spread Pattern Indicator.

https://www.mql5.com/en/market/product/32961

https://www.mql5.com/en/market/product/32960

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-indicator/

Secondly, Volume Spread Pattern Detector is the light version of Volume Spread Pattern Indicator above. This is free tool with some limited features. However, Volume Spread Pattern Detector is used by thousands of traders. Especially, it works great with the support and resistance to confirm the turning point. This is free tool. Just grab one.

https://www.mql5.com/en/market/product/28438

https://www.mql5.com/en/market/product/28439

https://algotrading-investment.com/portfolio-item/volume-spread-pattern-detector/

Both Volume Spread Pattern Indicator and Volume Spread Pattern Detector works well with Excessive Momentum indicator as Excessive Momentum indicator helps to detect the potential Accumulation and Distribution area automatically. Hence, if you are using Excessive Momentum Indicator, then you can use one between Volume Spread Pattern Indicator or Volume Spread Pattern Detector. In addition, we provide the YouTube video to accomplish the basic operations of Excessive Momentum Indicator.

YouTube Video (Momentum Indicator): https://youtu.be/oztARcXsAVA

Here is link to Excessive Momentum Indicator for MetaTrader 4 and MetaTrader 5.

https://algotrading-investment.com/portfolio-item/excessive-momentum-indicator/

https://www.mql5.com/en/market/product/30641

https://www.mql5.com/en/market/product/30621

Thirdly, we provide the volume Zone Oscillator. This is another useful free tool that utilizes the volume information for your trading. You can use these tools for volume spread analysis, Harmonic Pattern, Elliott Wave Pattern, X3 Price Pattern further. This is free tool. Just grab one.

https://algotrading-investment.com/portfolio-item/volume-zone-oscillator/

Harmonic Pattern

Harmonic patterns are another fractal wave patterns that frequently used by many financial traders. Harmonic patterns are typically made up from two or three triangles (i.e. three price swings or four price swings). The structures of the harmonic pattern are based on the Fibonacci ratios. Hence, some people consider Harmonic pattern as an advanced Fibonacci price patterns.

The history of the harmonic pattern goes back to the Gartley’s book “Profits in the Stock Market” in 1935. At that time, Gartley described the trend reversal pattern on page 222 of his book. The pattern become popular in the late 1990s (Pesavento and Shapiro, 1997). Since then, many traders developed the common interest in looking for the repeating patterns in the financial markets. The harmonic patterns were refined many times in several decades. Harmonic trader emphasizes that the patterns are not only repeating in history but they also follow natural orders. Although few different references exist about the meaning of the natural orders, the natural orders mostly means the periods of the neighbouring waves in the Fibonacci relationship (Pesavento and Shapiro, 1997). Fibonacci ratio derived from Fibonacci numbers are the core relationship used in harmonic pattern identification.

Two main elements of Harmonic pattern trading are the pattern recognition and the market timing. Between those two elements, the pattern recognition is the prior task before the market timing. Mostly harmonic patterns consist of five points except few patterns. The five points are denoted as XABCD conventionally (Figure 1-2). Harmonic Pattern trading is the typical mean reversion trading strategy. It assumes that the market will change direction, for example, from buy to sell or from sell to buy. In fact, the harmonic pattern detection is equivalent to detecting the turning point. Although the accuracy of the turning point prediction is subject to the probabilistic nature, harmonic pattern trading is popular among traders.

For your trading in Forex and Stock market, we provide the detailed performance for each Harmonic Pattern. You can download PDF file for each pattern from the link below. Or you can visit the YouTube video to check each pattern from the link below. Each PDF or YouTube video will provide you a proof for the Harmonic Pattern. At the same time, you can use this proof to improve the given structure of the Harmonic Pattern.

From the link below, you can find the useful information for Gartley Pattern used in Forex and Stock market.

Gartley Pattern: https://algotrading-investment.com/2022/05/18/gartley-pattern-harmonic-pattern/

From the link below, you can find the useful information for Butterfly Pattern used in Forex and Stock market.

Butterfly Pattern: https://algotrading-investment.com/2022/06/20/butterfly-pattern-harmonic-pattern/

From the link below, you can find the useful information for Bat Pattern used in Forex and Stock market.

Bat Pattern: https://algotrading-investment.com/2022/06/21/bat-pattern-harmonic-pattern/

We also provide the great trading education about Harmonic Pattern. You can have a look at following books to learn how to best use Harmonic Pattern for your trading in Forex and Stock market. From these books, you will also find the X3 Chart Pattern framework that helps you to study, prove and improve Harmonic Pattern to maximize your trading performance.

Guide to Precision Harmonic Pattern Trading

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

Science Of Support, Resistance, Fibonacci Analysis and Harmonic Pattern

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

Profitable Chart Patterns in Forex and Stock Market

Link: https://algotrading-investment.com/portfolio-item/profitable-chart-patterns-in-forex-and-stock-market/