Abstract：Harmonic patterns are specific formations used in technical analysis that can help traders understand price action and forecast where prices may go next.
Now that youve got the necessary chart fiqure down, then it is the right time to proceed and add some more new tools to your forex trading weapons to have a better strategy for nice outcome. Here in this lesson we will be talking about harmonic price patterns.
Harmonic patterns are specific formations used in technical analysis that can help traders understand price action and forecast where prices may go next.
These bad boys may be a little harder to understand but once you spot these setups, it can lead to some very nice profits!.
The major idea of these patterns is that they help Traders to point out all the expected retracements of recent trends.
To be precise, we‘ll includes other tools we’ve already covered like the Fibonacci retracement and extensions. Combining these fantastic tools to point out these harmonic price patterns, will give us chance to distinguish possible areas for a continuation of the overall trend.
In this part of the lessons, were going to discuss the following Harmonic Price Patterns:
A little bit much to cover, right？ But never mind the more you get the basic tips it will just be as simple as A-B-C!
Out of the fore mentioned Harmonic Price Patterns, we will start off with the main basic ABCD and three-drive patterns before proceeding to Gartley and the animals. After understand the Required knowledge about them, then we will take a look at the tools needed for you to trade these patterns successfully in the forex market. For all these harmonic price patterns, the point is to wait for the entire pattern to end before taking any short or long trades.
The ABCD and the Three-Drive
These champions have one thing in common: they not only work their butts off, but they also enjoy what they do.
"Patience is the key to everything," American comic Arnold H. Glasgow once quipped. The chicken is gotten by hatching the egg rather than crushing it."
Ask any Wall Street quant (the highly nerdy math and physics PhDs who build complicated algorithmic trading techniques) why there isn't a "holy grail" indicator, approach, or system that generates revenues on a regular basis.
We've designed the School of WikiFX as simple and enjoyable as possible to help you learn and comprehend the fundamental tools and best practices used by forex traders all over the world, but keep in mind that a tool or strategy is only as good as the person who uses it.