Harmonic Trading...

[Nescimento]

What is the success rate of the harmonic patterns on 1 hour or 4 hour time frame

[DickP]

What is the success rate of the harmonic patterns on 1 hour or 4 hour time frame

I guess its not so great, we aren't seeing to many people step up to the plate and vouch for it are we?

[bonus123]

harmonic trading? - for me it doesn't exist)

[Mike]

Possible short on EURJPY Daily. Bearish Bat Pattern has formed. Now, I wouldn't up and go short right away, I'm looking for something to indicate there will be a breakdown or at least a reversal, right now I see sideways action.




But if things start to go south I'm setting my stops at 104.95

[Mike]

Posted in wrong spot, visit here: http://forexforums.com/forums/showth...7600#post97600

[Mike]

We're now in the 4th day of this active pattern, the last leg is still rising with price, now past 107.00 and tapped 107.50



Going back to the first post I made, it never said SHORT NOW, and this really goes to the heart of this type of trading, when trading harmonics you need to really tow the line between jumping the gun too soon and not waiting too long. On a daily chart, of course it could become a week long (or more) reversal that you can trade.

How can one do that, determine when its appropriate to start trusting in the harmonic pattern. One obvious way is to wait one bar for the reversal to begin, in the EURJPY case right now the pattern formed 4 bars ago but keeps redrawing its position on the next bar and the next until it goes so high that its no longer a bearish bat or until the reversal begins.

My other way, the way I do it I should say, is to look for shorts in the direction of the pattern, in this case, I was looking for a reason to short, and with my other charts in TopGun I literally see no reason to short it yet, not until price crosses the Yellow Balance Point Line and crosses the midpoint line of the containment band which is also a 60min MA, until then we are looking for long trades. In fact, in an environment like this, I'm not even looking for a short but the harmonic pattern in MT4 is in the back of my mind.


NO REASON TO SHORT
So looking at the 600tick chart over the last 3 days, I see almost no reasons to go short, for a brief time price drifts below the YBPL and EURO is looking a tad weak but does not traverse the MIDPOINT LINE of Containment Bands.

Alternatively going long is aided by the containment bands, staying in a long trade until the bands are hit which seem to always predict the high of a short term trend, and only in very strong markets do those bands get violated.



Range Breakouts

The other major thing I still follow is the early warning range trade system where we draw (or use an indicator) to draw a Support and Resistance line below/above where price has been over the last 4 hours (before and during the Asian session)). Once these lines are crossed in either direction, it is a simple and fairly accurate way of determining where the trend will go for the rest of the day or at least until a certain area of support or resistance is reached.

In the example above is a bit tricky because if you take this method literally and go long only after the resistance level is breached you miss out on a large part of the move. You have to remember, the line of support that is drawn on the bottom (where a breakout trade waits to go short) is also a line of support where many traders may go long, and rightly so, even if price is to rise only to the resistance level, it still is a viable long trade. And in the above example price ends up going through the 106.40 resistance level, then retracing below, then back above, note the long candle wicks, price kept rising but in every bar had problems staying there.

This example is from this morning early in the Asian session where I think if you draw lines above and below the range going back a few bars would be more appropriate, but as you can see, there's no shorting opportunities in our golden hours, the bias is to the upside which is my main point.

So there's always a need to confirm your reasons for entries, but don't over analyze and wait for a harmonic pattern to bear fruit because it may take a few days if at all.

[sir_charles]

Are you guys fan of HARMONIC TRADEr.com ? I just found their site and would like to know if you are keen on the software they provide? They say they can find the harmonic patterns on all time frames and would love to know if its worth the price tag?

Thanks to you.

[sir_charles]

Possible short on EURJPY Daily. Bearish Bat Pattern has formed. Now, I wouldn't up and go short right away, I'm looking for something to indicate there will be a breakdown or at least a reversal, right now I see sideways action.




But if things start to go south I'm setting my stops at 104.95

I'm wondering sir if this indicator you are using is at all like the software on harmonictrader.com, if so where can I get it for free?

[skynet]

So what's on the harmonic forecast for this week?

[JavyYayo]

Im sorry but I just don't think this method is worth while. I have been trying forex since 2006 and this was one of the methods that lost me a near fortune, if you can tell me why you all love it so much and where I went wrong maybe I will take this comment back...

[DanReilly]

Where can I get the indicator that puts the harmonic patterns on your chart for you?

[DickP]

The harmonic traders are taking a break at the moment. Do not disturb!

[whitley]

I was searching for the success rate of Harmonic indicators and ran across this blog here:

http://fx-trading-currency.blogspot....tern-crab.html

Please kindly be informed that this is not Butterfly, Gartley, Bat Patterns although it looks similar. The Crab is a Harmonic pattern discovered by Scott Carney in 2000. It is one of the most precise of all the Harmonic patterns. Check out this study summary, it was conducted on 15+M timeframe and include both bullish and bearish patterns. The Harmonic Chart Pattern Crab is the only one which has over 93% of accuracy which is really great, thing is you need to pay attention to its Fibonacci ratios to distinguish it with other Harmony Chart Patterns.

The critical aspect of this pattern is the tight Potential Reversal Zone created by the 1.618 of the XA leg and an extreme (2.24, 2.618, 3.14, 3.618) projection of the BC leg. The pattern requires a very small stop loss and usually provides an almost exact reversal in the Potential Reversal Zone.

[forexbrokers00]

i am sorry, what does harmonic trading? Is there anybody can tell me that, and i will really preciated.

[raybanz1983]

I am newbie and I want to know what is harmonic trading and how does it work?
http://RoboticTradingSystems.com

[sanashaikh05]

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[YenMan]

strange I never heard of this harmonic method before

[DonTrujillo]

Yea harmonic trading is new to me too.

[Republic]

Harmonic trading is actually very simple when you have a good indicator that combines not only the automated plotting/drawing of harmonic patterns but also the use of customized indicators (customized from the basic pivot points, bollinger bands, MA etc.) to give you an edge in harmonic trading.

I think the main problem with currently available harmonic indicators is that they do not have double/triple checks that are effective enough to give you a stronger edge (reduce false positives, give you a more specific zone of entry). Because of this most beginner harmonic traders may lose money as they enter after the pattern emerges, but before an even stronger entry is signalled! If any of you are interested to know more about the indicator that I'm currently using do PM me, I'll gladly share more about the system I use.

[Ricky.Roma]

Harmonic trading is actually very simple when you have a good indicator that combines not only the automated plotting/drawing of harmonic patterns but also the use of customized indicators (customized from the basic pivot points, bollinger bands, MA etc.) to give you an edge in harmonic trading.

I think the main problem with currently available harmonic indicators is that they do not have double/triple checks that are effective enough to give you a stronger edge (reduce false positives, give you a more specific zone of entry). Because of this most beginner harmonic traders may lose money as they enter after the pattern emerges, but before an even stronger entry is signalled! If any of you are interested to know more about the indicator that I'm currently using do PM me, I'll gladly share more about the system I use.

Get in touch wqith me, i NEEEED to know more