Harmonic Pattern Plus MT5
Introduction to Harmonic Pattern Plus
Harmonic Pattern Plus is a Harmonic Pattern scanning software designed to work in MetaTrader 5. The purpose of the Harmonic Pattern Plus Software is to identify the turning point (or the trend reversal point) of the current trend by detecting the harmonic patterns with high prediction power. Harmonic patterns are made from multiple lines joined with significant Fibonacci ratios such as 0.618 and 0.382, which are used by many professional traders to gauge the price breakout level.
These harmonic patterns repeatedly occurs in the financial markets and the big trend reversal often follow after these patterns. These patterns were proven to accurately identify the turning point by many professional traders for more than 50 years. Also many statistical studies show the significant prediction power of harmonic patterns too. These patterns work well in the Forex Market and the risk reward ratio is great. The software has many useful features for full time and part time Forex traders. This type of a tight risk controlled trading style is also suitable for investors with serious money.
Main Feature of Harmonic Pattern Plus
- This software can send an email to you when Harmonic pattern is detected on any charts. So even when you are outside, you can be still notified and trade as long as you have a small laptop with you.
- You can attach this Harmonic Pattern over many different charts as the scanning times are pretty quick. Recommended timeframe is M15, H1, H4 and D1.
- The software will identify the significance of the Harmonic pattern using the size of pattern. You can immediately decide if it is tradeable pattern or non-tradeable pattern when you are notified.
- The software saves historical patterns over the past price data in the memory and you can bring the historical patterns on chart and build your own strategy using these historical patterns. This can be readily done by changing Max number of patterns to display variable in the property window.
- Automatic channel drawing function and the channel can be used together with harmonic patterns for more accurate decision making.
- The candlestick pattern recognition techniques are also added value to this Harmonic Pattern Plus software. More information on your hands, you can better solve the Puzzle of Forex market. Therefore, never underestimate the value of more information.
- Without too much tweaking or with default setting, the software is ready to use.
Note that each Harmonic pattern, channel and candlestick patterns are independently built into the software. Therefore, you can switch off any of them if you don't want to see them on the chart. For example, beginners may start to use only channel and harmonic patterns without candlestick patterns. Also each variable description can be read from the indicator property window. To use the email notification, you need to enable the email notification in your MetaTrader 5 terminal. There is a good article on how to set up your email account with MetaTrader 5 terminal on https://www.mql5.com/en/articles/80.
Other Useful Information about Harmonic Pattern Plus
- The Harmonic Pattern Plus automatically draw Fibonacci Retracement level. Therefore the trader can just place their take profit and stop loss according to this Fibonacci Retracement level. Note that drawing Fibonacci Retracement level can be also switched off by user.
- The trader can decide how many harmonic patterns to display in the chart. Sometimes showing too many patterns can be distracting but showing too little pattern can be less informative. You have an option to change this in the property window (Default = 3).
- Candlestick pattern can be very useful guide to gauge the mood of market in advance. So use them together after the harmonic pattern is formed. However, they may be little too distracting for beginners. Therefore, you may switch the candlestick pattern off.
- All the found harmonic patterns can be either printed in the expert journal or written on the text file. You can set this option using input variables. If you set to write all the harmonic patterns, then the file will be generated on the terminal folder of your MetaTrader platform.
- As a default, all the bearish patterns will be colored in dark pink and all the bullish patterns will be colored in blue. The trader can change this setting using input variable.
How to use Harmonic Pattern Plus for your profitable trading
There are many different ways to trade using Harmonic pattern. Normally when the pattern is formed, you can take a quick profit first and then exit. In the second entry, you will use moving average and you will enter the market when more solid trend is formed. In your third entry, you place multiple of orders according to moving average signal as the trend is developed and in this timing you will use the momentum strategy to catch the large trendy movements. For a good rally market, you will have a chance to place your orders for first, second and third entries. This will give you an opportunity to buy on the very bottom and sell it on near the top. You are supposed to attach this "Harmonic Pattern Plus" software to multiple of charts. I personally attach this Harmonic Pattern Plus indicators on 30 different hourly and 4 hourly charts and wait for the good signals. I get notified even I am outside as the "Harmonic Pattern Plus" will send you email for newly formed harmonic pattern. You will get at least more than 5 trading opportunities a day. If you want to find out more about how to trade using harmonic pattern, please send me a private message. This is a great trading strategy and even beginner can use it well.
Information for beginners: what is Harmonic Pattern?
Harmonic Pattern was first used by H.M. Gartley and the Gartley pattern was introduced in his book "Profits in the Stock Market with Charts" in 1935. Since then many professional traders improved and found other profitable patterns. Another useful source for harmonic pattern trading is the Scott M. Carney's book, Harmonic Trading (Profiting from the Natural order of Financial Markets). Each harmonic pattern consists of many lines joined by Fibonacci number. Therefore the harmonic patterns are considered as natural representation of trader's reaction and reflection of trader's psychology.
With the observed statistical significance and with the proven profitability by many professional traders, you should be very attentive when the harmonic pattern is formed in your chart. The harmonic pattern will provide the good turning point (trend reversal point) providing you the opportunity to enter the market a way quicker than other traders. Therefore your reward is often far greater than your risk. The Harmonic Pattern Plus software can detect most of known Harmonic patterns discussed by many professional traders and currently 9 different harmonic patterns can be detected using Harmonic Pattern Plus software. These 9 different harmonic patterns were selected by author as they tend to outperform other patterns, as well as they have longer history than other patterns. The 9 harmonic patterns are:
- Alternate Bat
- 5-0 patterns
Multiple Timeframe Control Feature in Single Chart
This description applied to both Harmonic Pattern Plus and Harmonic Pattern Scenario Planner since both of them are identical 95% of their functionality. Most important feature in this new version is that you can add multiple of Harmonic Pattern Plus controlling different timeframes in one chart. If you wish, you can add 4 harmonic Pattern Plus in one chart controlling M15, H1, H4, D1 timeframe or even more. One limitation when you add multiple Harmonic Pattern Plus is that you can only use the Calculation Timeframe (timeframe to detect patterns) greater than current chart timeframe. For example, if your chart timeframe is H1, then you can only use Calculation timeframe H1, H4, D1, etc. You can not use M15 calculation timeframe for H1 chart timeframe since you can not draw the M15 pattern to H1 timeframe chart.
Custom Take Profit and Stop Loss
In version 9.2, Custom Take Profit and Stop Loss are defined using Pattern Completion Interval (PCI) for more clever setup. 3 Take Profit is equivalent to the 3 x the PCI box range. 1 Stop Loss is equivalent to the 1 x the PCI box range. The ellipses (stretched circle) shows you the potential entry. When your order is placed inside this circle,
your Reward/Risk can range from 1 to 10 or even more in strictly mechanical trading. Why this happen? Do some basic math maybe looking at your chart. Note that this is the potential entry level shown only for your convenience but not limited to creating your own clever trading setup. The ellipses is like the ruler to gauge your potential entry in your preferred Rewards/Risk ratio and it is not an indicator showing direction or etc.
For more details about version 9.2, you can check this link below.
Harmonic Pattern Plus MT5 Comment Section: https://www.mql5.com/en/market/product/4475#!tab=comments&page=4
Feature 1: Options to switch on and off each pattern type. With this option, you can switch off or switch on any pattern type as you wish. For example, if you want to turn off Bat pattern from Harmonic Pattern Plus. Yes. You can. You can do the same for the price Breakout Pattern Scanner. For example, if you don’t want to see head and shoulder pattern, then you can just switch off them. How to use this feature is very intuitive. You just need to set the swton on and off in your Indicator Input settings.
Feature 2: Options to filter out small patterns. We will add “Pattern Size Filter” input. With this input, you can filter out small patterns and you can only trade with big patterns. You can use this feature in our Price Breakout Pattern Scanner too as well as with Harmonic Pattern Scenario Planner. Pattern Size Filter is simply done by counting number of candles inside patterns. So Make Pattern Size Filter large, then you will only see large patterns. If you want to see any patterns, then just set Pattern Size Filter = 0.
For example, you can use Brick Height (in pips) = 10, 20, 25, 50, 100, 200, 500, etc, as they are the fact of 100 or 1000 pips. As long as you are using these brick height, the brick will be drawn in the same level regardless of the amount of historical bars and your brokers. This is really good property as traders can develop strategy universally working across different platform.
This improved version of Smart Renko 6.0 is included in the new update for Harmonic Pattern Plus.
Number of detected patterns can be different according to your brick height and now you can even find that pattern specially formed around psychological number (round number) if this is one of your preferred strategy.
At the same time, user can choose to detect pattern over normal candle stick too as before. To choose the detection mode, user can use the following variable.
Use Renko Filter for Pattern detection : true or false only
We have currently set the default as Renko Filter Mode.
(Important note, Renko can be calculated using sub time frame. For example, Renko brick can be calculated using M5 or M15 time frame when you actually use this indicator for H1 chart. If the data is loaded, then there is not a problem. But sometime, data loading may be issue. But this is the issue present inside Meta Trader terminal. It might be fixed in the future when new Meta Trader version is released or maybe not. To avoid this issue, your default calculation time for Renko brick calculation is set to current time frame. But you can always change it with your own experiment. In our experience, there can be small difference when you change the calculation time frame. Smaller time frame is generally more accurate. But still higher time frame will do the job too.)
This means that you can choose pattern update frequency at different timeframe from a default one.
For example, if you are using Harmonic Pattern Plus on H1, normally pattern detection will be updated at every 1 hour but now you can even detect pattern at every 1 or 5 minutes instead of every 1 hour.
To do so, simply set Pattern Update Frequency = Period you want (PERIODM1 or PERIODM5, etc.).
This helps you to enter with much better risk/reward ratio.
Button "MTD" is used to perform multi Time Frame Pattern Detection. So, press this button to see or hide the multi timeframe pattern panels.
We have also added five input settings in regards to this MTD feature.
If you want to permanently run this MTD feature at every candle, then just set Use Multi Timeframe Pattern Detection = true.
However, this MTD feature requires much heavier computation. Therefore, to run this at every candle, we will leave this to your own choice.
//Use Multi Timeframe Pattern Detection
//Use Sound Alert from MTD
//MTD Panel X coordinate
//MTD Panel Y coordinate
//MTD Panel Update Frequency
Overall, this MTD feature will help traders to make a lot better and more accurate trading decisions.
//Show Pattern Completion Interval ('true' or 'false' only)
//Pattern Completion Interval Box Size (default = 4)
//Pattern Completion Interval Box Width (default = 2)
//Pattern Completion Interval Bullish Color
//Pattern Completion Interval Bearish Color
//Pattern Completion Interval Text Color
//Pattern Completion Interval Text Size
//Use Custom Stop Loss and Take Profit
//Custom Take Profit: Enter fibo number 0.386, 0.5, 0.618, 0.786, 1.0
//Risk Reward Ratio (Reward/Risk): use more than 1.0
//Custom Take Profit and Stop Loss Line Length
//Custom Take Profit and Stop Loss Line Width
//Custom Take Profit and Stop Loss Text Size
//Custom Take Profit Color
//Custom Stop Loss Color
//Custom Open Price Color
//Show Guided Trading Instruction
//Guided Trading Instruciton X Coordination
//Guided Trading Instruction Y Coordination
//Your Target Success Rate: 55%(0.55) = default
//Your Risk per Trade: 2% (0.02) = default
//Your Target Trade Number: 100 = default
Note that this feature is great so you can study How harmonic pattern evolved through historcal data. This is very powerful feature. For example, you can learn how harmonic pattern worked in 2005 and compare its appearance on 2015. You can apply this knowledge for your trading. Something like this can't be achieved by manual traders.
However, scanning more bars requires a lot more computation time. So please be careful in using this feature. Also maxium number of patterns indicators can search is 1000. So Know this limitation too.
For average traders, 1500 bars (default setting) is more than fine.
In version 3.8, New feature 1:
We added Fibonacci projection of followings:
1. Internal Price Retracement (XA)
2. External Price Retracement (BC)
3. Correction of Price Projection (ABCD)
4. Future Price projection (CD, this is existing Fibo retracement from earlier version)
Trader can control depth of these Fibonacci Projection using following variable:
Potential Reversal Zone Projection Depth (0 to 8, 0=no drawing)
value 1: fewer Fibonacci lines (for less sophisticated trading setup)
value 8: more Fibonacci lines (for more sophisticated trading setup)
Also individual Fibonacci projection can be switch on/off by setting these values to zero or other values:
Potential Reversal Zone Line Length for XA (0=no projection)
Potential Reversal Zone Line Length for BC (0=no projection)
Potential Reversal Zone Line Length for ABCD (0=no projection)
Future Price projection (CD, this is existing Fibonacci retracement from earlier version) is identical to and this can be controlled by previous Fibo Display option.
In version 3.8, New feature 2:
Now by just simply clicking over "Symbol" button on your chart, trader can detect new patterns at any tick arrival without waiting for new bar arrival. This is useful if you want to detect patterns before new bar arrivals. (Fast discovery of the patterns)
1. Added ability to change button text size (Text Size button).
2. Added push notifications for sending messages to mobile terminals.