Young Ho Seo is an Engineer, Financial Trader, and Quantitative Developer, working on Trading Science and Investment Engineering since 2011. He is the creator of many technical indicators, price patterns and trading strategies used in the Financial market. His works include to develop scientific trading principle and mathematical algorithm in the work of E.S. Gardner, B. Mandelbrot, R. N. Elliott, H. M. Gartley, R. Shabacker and W.D. Gann. His life mission is to connect financial traders and scientific community for better understanding of this world and crowd behavior in the financial market. He wrote many books and articles, which are helpful for understanding the technology and application behind data mining, statistics, time series forecasting, fractal science, econometric and artificial intelligence in the financial market.
Harmonic Pattern Detection Indicator Trading Indicator is the realization of particular theory or trading strategy or trading ideas for real world trading. There is always gap between theory (i.e. ideas or strategy) and practice. This is the same for Harmonic Pattern trading too...
Harmonic Pattern Detection Indicator Trading Indicator is the realization of particular theory or trading strategy or trading ideas for real world trading. There is always gap between theory (i.e. ideas or strategy) and practice. This is the same for Harmonic Pattern trading too.
Hence, 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.
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”.
Here is the list of Harmonic Pattern Indicators for MetaTrader 4 and MetaTrader 5.
1. Harmonic Pattern Plus (2014)
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.
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.
Below are the Links to Harmonic Pattern Scenario Planner
Profitable Pattern Scanner is next generation tools to trade with profitable 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. 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.
New Article –Rolling Ball Effect and Harmonic Pattern Trading
Rolling ball effect is something you must understand for your reversal trading. Especially, if you are interested in harmonic pattern trading or elliott wave trading or rising wedge or falling wedge patterns, then this is a must understand concept before using them in practice. You can save tons of money in trading by reading this simple article.
New Article – Various Risks in Trading and Investment
Trading and investment carry risk. The opportunities in trading and investment without risk rarely exits except some arbitrage opportunities, which will not be discussed in this book. In theory, you could develop several classes of risks for trading and investment. For example, risk in trading and investment can be classified as Macro and Micro risks depending on where they are originated. Macro and Micro risks can be subdivided further into smaller categories like the market risk, operational risk, liquidity risk, credit risk, political risk, etc. Read entire free article from below link:
New Article – Various Risks in Trading and Investment Trading and investment carry risk. The opportunities in trading and investment without risk rarely exits except some arbitrage opportunities, which will not be discussed in this book...
Advanced Price Pattern Scanner Versus Price Breakout Pattern Scanner Many of you can be curious how our Advanced Price Pattern Scanner and Price Breakout Pattern Scanner are different from each other. Simply speaking, Advanced Price Pattern Scanner is better product with the latest pattern detection algorithm incorporating some years of our research in pattern science. You will feel that Advanced Price pattern Scanner is using completely new pattern detection algorithm from Price Breakout Pattern Scanner. Even same patterns are detected in different timing between them. What does it mean by the better product, it simply means that the success rate of Advanced price Pattern Scanner is better than price breakout pattern scanner + You can do more sophisticated pattern analysis with Advanced Price Pattern Scanner. However, Advanced Price Pattern Scanner is more expensive. Hence, if you are concerned with the price. Then you can still go ahead with Price Breakout Pattern Scanner. It will do generally everything for your need from price pattern detection + Japanese candle stick pattern detection, etc. If you need the professional pattern scanner, we certainly recommend to use Advanced Price Pattern Scanner. In addition, Advanced Price Pattern Scanner also provide the multiple timeframe pattern detection helping you to reduce number of charts to open. Here are the links for Advanced price Pattern Scanner. https://algotrading-investment.com/portfolio-item/advanced-price-pattern-scanner/https://www.mql5.com/en/market/product/24679https://www.mql5.com/en/market/product/24678
Advanced Price Pattern Scanner Versus Price Breakout Pattern Scanner Many of you can be curious how our Advanced Price Pattern Scanner and Price Breakout Pattern Scanner are different from each other...
Understanding Gann’s Angles with Probability – Brand New Technology Gann’s Angles, aka Gann’s Fans, is popular trading concept. The idea behind Gann’s Angle is good. Gann Angles help us to measure the strength of trend based on these Angled lines...
Understanding Gann’s Angles with Probability – Brand New Technology Gann’s Angles, aka Gann’s Fans, is popular trading concept. The idea behind Gann’s Angle is good. Gann Angles help us to measure the strength of trend based on these Angled lines. Gann’s Angle requires us to find the true 45 degree in our chart. However, in implementing the idea, there are some practical limitations. These practical limitations make it harder to use Gann’s Angle in our trading. Let us try to understand what these limitations are in using Gann’s Angle in practice. Gann tried to equate price and time in 1 to 1 scale. In pursuing this idea, many of us can make some serious mistake. It is because price and time have different unit. In Forex market, price would be expressed as pips or points. In stock market, price would be expressed in US dollar or some other currency in the case of international stock market. The standard unit for time is second, minute, and hour. Probably this is clear to everyone. Equating price and time in 1 to 1 scale is not necessarily achieved using the angle (or slope) with 1 pip to 1 second or with 1 dollar to second. There is no meaningful use for this angle (or slope) of 1 pip to 1 second or 1 dollar to 1 second. Price and time use different unit. Hence, no one would suggest that 1 pip of price should be equal to 1 second of time. There is no theoretical background behind this. When you try to equate to 1 pip to 1 minute or 100 pips to 1 hour, or 10 dollar to 5 minute, all these attempts does not make much difference. However, just saying this is not enough for you. Hence, let us try to see what happens if we are using the angle (or slope) of 1 pip to 1 minute or 10 dollar to 5 minutes in practice. Different platforms provide different implementation for Gann’s Angle – inconsistency When each platform does not agree with each other, this is bad sign for consistency. For example, Gann’s Angle drawn in one platform looks different from the other platform, even though they are fixed to the same pip per candle bar. It is not only just they look different but also each line goes through different values. You can not trade if there is no consistency in chart. The same Gann’s Angle reacts differently per symbols – inconsistency This shows exactly why we should not be using the approach like equating 1 pip to 1 second or 20 pips to 1 hour, etc. Try on multiple charts, see what happens if you apply, for example, the angle with 10 pips to 1 hour or 10 dollar to 1 hour. The purpose of angle is to have some nice spacing between diagonal lines for our trading. However, applying 10 pips to 1 hour might look good on some currency pairs but in another currency pairs, the space between angles could be too narrow or too wide. Once again, you can not trade if there is no consistency in chart. The same Gann’s Angle reacts differently per timeframe – inconsistency Say you achieved nearly 45 degree in H1 timeframe using the angle of 100 pips per candle bar. Now when you apply the same angle of 100 pips per candle bar in Daily chart, we do not get the same good 45-degree dividing price and time as we have seen in H1 timeframe. What is even worse? There is also possibility of your monitor screen resolution could play some roles in this inconsistency. For example, say that you found that good 45 degree angle in the monitor resolution of 1000 x 780, this can look different if someone is using the monitor with 2000 x 1400 resolution. For example, some good 45 degree in one resolution can look stretched or squeezed in another resolution in other monitors. Try to draw circle in one monitor, then you will see that the circle looks eclipse in another monitor as an example. All this inconsistency will provide you room for subjectivity in your trading. Many of us have learnt that subjectivity is bad for trading through expensive practical lesson, for example, losing a lot of money in the market. Now we will show you how to overcome this inconsistency and subjectivity in using Gann’s Angles (aka Gann’s Fans). Gann’s Angles with Probability In spite of this inconsistency issues in Gann’s Angle, it is hard to give up the idea of equating price and time. Gann’s Angles is one of few ideas trying to relate price and time directly in the world of trading. As a trader, we know that it could be helpful if one can really equate price and time in more consistent manner. However, this has to be done with much smaller room or no room for subjectivity because we can not trade with inconsistency. In this end, we made extensive research with many trials and errors, to find out the better way of equating price and time. In doing so, we need to find the common factor between price and time. For example, we need the same language which could be understood, in the point of price and time. The solution we find to reduce or to remove this inconsistency is using probability. Probability is universal language. Using probability, we can make sense out of both price and time. For example, 90% probability for price is equal to the 90% probability in time. In another words, we can equate price and time in fair manner using probability. This is something we can feel it much more than trying to equate some pips to candle bar or some dollar values to candle bar blindly. This idea works across different timeframe and different symbols with consistency. In practice, we use empirical probability based on available price data. Hence, there could be some discrepancy in our probability measurement. This is fact too. Yes, we know there is no perfect being in this world. However, this is minor problem in comparing to the huge roller coast experience using the angle of 10 pips per candle bar or 10 dollar per candle bar. When you use probability, you do not have to worry about picking up new value for your angle every time. You can just use one setting for every different cases. They will divide price and time with sensible space for your trading. Hence, applying Gann’s Angle is automatic with probability. What is even better? The probability measured is basically turning point probability telling you when market will reverse in price and time. Hence, you can use Gann Angles together with this probability information on your hands. Gann’s Angle will help you to measure the trend strength whereas probability will tell you the possible reversal point. In fact, you would be interesting to see how these angled lines interact together with this turning point probability in price and time dimension. Gann’s Angle with Probability is the brand new invention after our extensive research with Gann’s Angle in financial market. Fully featured Gann’s Angles with Probability is implemented and available inside Fractal Pattern Scanner. Landing Page to Fractal Pattern Scanner https://www.mql5.com/en/market/product/49170https://www.mql5.com/en/market/product/49169https://algotrading-investment.com/portfolio-item/fractal-pattern-scanner/
New Article – Insignificant Turning Point, Local Turning Point and Global Turning Point Here is another article explaining some useful concept for your Forex and Stock Market Trading. Of course, this is free article to improve your trading performance...
New Article – Trading Setup with Pattern Completion Interval for Harmonic Pattern Trading Here is another article explaining some useful concept for your harmonic pattern trading. Of course, this is free article to improve your harmonic pattern trading. https://algotrading-investment...
Risk Management with Profitable Patterns Risk management is the most important success factor for your trading. For any trading strategy, you can not grow your capital without risk management. When you trade with Profitable patterns like harmonic pattern and elliott wave patterns and x3 patterns, this is not an exception. Profitable Pattern Scanner is using the risk management concept with Pattern Completion Interval for your trading. Please make sure that you understand the role of Pattern Completion Interval and how it can help for your trading. In Profitable Pattern Scanner, your stop loss and take profit is controlled for individual patterns. It is controlled per pattern. This is the main difference from Harmonic Pattern Plus and Harmonic Pattern Scenario Planner. Since Profitable Pattern Scanner have different categories of patterns like Elliott Wave patterns, Harmonic patterns and X3 patterns, you can apply different money management scheme if you wish. To change your stop loss and take profit, scroll down in your input. Stop Loss = 1 means that it is size of 1 x Pattern Completion Interval Box. Take Profit = 2.5 means that it is size of 2.5 x Pattern Completion Interval. Profitable Pattern Scanner provide all the historical patterns, helping you to tune your strategy. Hence, please test your strategy and change your stop loss and take profit according to your observation from your chart. We have already shown you how to test your strategy with Profitable Pattern Scanner in another article here. https://algotrading-investment.com/2019/09/18/showing-historical-patterns-in-profitable-pattern-scanner/ Here is link the Profitable Pattern Scanner https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/https://www.mql5.com/en/market/product/41992https://www.mql5.com/en/market/product/41993
New Article Released – Harmonic Pattern Trading with Turning Point Probability We have released one of the important article for your practical trading in Forex and Stock market. Please make sure to read this article to enhance your trading performance...