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Harmonic Pattern Detection

31 August 2022, 07:36

Young Ho Seo

1 149

Introduction to Harmonic Pattern Detection Indicator

Harmonic Pattern Detection Indicator is the tool to scan harmonic patterns in your chart automatically. Before going on to Harmonic Pattern Indicator, you need to understand what is the Harmonic Pattern trading first. Harmonic Pattern trading is a way to trade using the strategy of price action and price pattern in Forex and Stock market. To use the Harmonic Pattern Trading, first you need to understand what is the Harmonic Pattern. Loosely speaking, Harmonic Pattern is the kind of chart pattern. Technically speaking, 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. Harmonic patterns include Butterfly, Gartley, Bat, Alternate Bat, AB=CD, Shark, Crab, Deep Crab, Cypher, 5-0 Patterns, 3 Drives Pattern and so on. Harmonic Pattern Trading is not bullet proof but if it is used wisely, then it can yield enough edge to pull the profits from the market.

Harmonic Pattern indicator refers to the automated tool to detect various Harmonic Pattern in your chart automatically. However, not all the harmonic pattern detection indicators are the same. The main variations of Harmonic pattern indicators can be categorized as following four types. Users should understand the pros and cons of each variation to maximize their trading performance with harmonic patterns.

Type 1: Non lagging (fast signal) but repainting

option to enter from turning point. Indicator does not show the failed pattern in chart and last pattern can repaint. This is almost considered as standard Harmonic Pattern Indicator. Even if they are repainting, harmonic pattern trader just accept it as it is. 99% of time, this is the harmonic pattern product you will get from the market whether they are free or paid one. You can trade live with this indicators but historical patterns can not be used to fine tune your strategy.

YouTube: https://www.youtube.com/watch?v=CzYUwk5qeCk

Type 2: Lagging (slow signal) but non repainting

no option to enter at turning point (i.e. early signal). This type of indicator turns harmonic pattern indicator as slow as moving average cross over. It might be not overly attractive option for your trading. Indicator does not show the failed pattern. Hence, you can not use historical patterns to tune your strategy but last pattern does not repaint. You can trade live with this indicators but historical patterns can not be used to fine tune your strategy. Probably about 1% of harmonic pattern indicator is this type.

Type 3: Detecting pattern at point C but repainting

option to enter at turning point. Indicator detect pattern too early and you have to wait quite bit of time until price move near the point D. In fact, price may not move near point D. You might just waste your time waiting for the pattern. Indicator does not show the failed pattern and last pattern can repaint. You can trade live with this indicators but historical patterns can not be used to fine tune your strategy. Probably about 1% of harmonic pattern indicator is this type.

Type 4: Non lagging (fast signal) and non repainting

option to enter from turning point. At the same time, the pattern is not repainting. This is hybrid of all above three system and can be considered as the most powerful harmonic pattern indicator. You can trade live with this indicators and you can also use historical patterns to fine tune your strategy. With this indicator, you are complying perfectly with the statement “Trade What you See”.

YouTube: https://www.youtube.com/watch?v=uMlmMquefGQ

Harmonic Pattern Plus

Harmonic pattern plus is extremely good product for the price. With dozens of powerful features including Pattern Completion Interval, Potential Reversal Zone, Potential Continuation Zone, Automatic Stop loss and take profit sizing. This is type 1 harmonic pattern indicator.

Harmonic Pattern Plus for MetaTrader 4

Harmonic Pattern Plus for MetaTrader 5

YouTube: https://youtu.be/CzYUwk5qeCk

Harmonic Pattern Scenario Planner

With additional features of predicting future harmonic patterns, this is very tactical harmonic pattern indicator with advanced simulation capability on top of the powerful features of harmonic pattern plus. This is type 1 and type 3 harmonic pattern indicator.

Harmonic Pattern Scenario Planner for MetaTrader 4

Harmonic Pattern Scenario Planner for MetaTrader 5

X3 Chart Pattern Scanner

X3 Chart Pattern Scanner is next generation tools to trade with Harmonic pattern and Elliott Wave patterns in Forex market. With non repainting and non lagging algorithm, this tool can detect with advanced Harmonic Pattern, Elliott Wave Pattern, X3 Chart Pattern for your trading. As a bonus, it provides your Japanese candlestick patterns too. This 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.

X3 Chart Pattern Scanner for MetaTrader 4

X3 Chart Pattern Scanner for MetaTrader 5

YouTube: https://youtu.be/uMlmMquefGQ

Harmonic Pattern Detection Indicator for MetaTrader 4

You can use harmonic pattern detection indicator with several different strategy. For example, you can consider to use following trading setup.

Trade on Harmonic Pattern by confirming other technical indicators like RSI, Stoch, etc
Trade with Bollinger bands
Trade between Potential Continuation Zones
Trade on Harmonic Pattern with other support and resistance or supply demand analysis ( Mean Reversion Supply Demand or Ace Supply Demand Zone )
Trade with Triangle Pattern, Rising Wedge and Falling Wedge Patterns ( Price Breakout Pattern Scanner or Advanced Price Pattern Scanner )
Trade with Elliott Wave Pattern ( Elliott Wave Trend )
Trade with Pairs Trading and Spead Analysis ( Pairs Trading Station )

Harmonic Pattern Detection Indicator for MetaTrader 5

You can use harmonic pattern detection indicator with several different strategy. For example, you can consider to use following trading setup.

Trade on Harmonic Pattern by confirming other technical indicators like RSI, Stoch, etc
Trade with Bollinger bands
Trade between Potential Continuation Zones
Trade on Harmonic Pattern with other support and resistance or supply demand analysis ( Mean Reversion Supply Demand or Ace Supply Demand Zone )
Trade with Triangle Pattern, Rising Wedge Pattern and Falling Wedge Patterns ( Price Breakout Pattern Scanner or Advanced Price Pattern Scanner )
Trade with Elliott Wave Pattern ( Elliott Wave Trend )
Trade with Pairs Trading and Spead Analysis ( Pairs Trading Station )

Guide to Precision Harmonic Pattern Trading

In fact, all above trading setup is discussed in detail with the Book: Guide to Precision Harmonic Pattern Trading. If you want to learn harmonic pattern trading, then this is a good book to start with. The book provides you the trading strategy. It will also explain some practical concepts to trade with Harmonic Pattern including Pattern Completion Interval, Potential Reversal Zone, and Potential Continuation Zone. The book will help you to to identify the favorable entry and exit timing. With sound risk management concept, this book will introduce the rolling ball effect and how to use mutual patterns to control the rolling ball effect while you are predicting the turning point with Harmonic Pattern. The book is available in all the major ebook distributors.