You are here:Home1/User Post2/Article3/Potential Continuation Zone VS Fibonacci Retracement for Harmonic Pattern...
Potential Continuation Zone VS Fibonacci Retracement for Harmonic Pattern Plus and Harmonic Pattern Scenario Planner
In Harmonic Pattern Plus (and with Harmonic Pattern Scenario Planner), you can use both Potential Continuation Zone (PCZ) and classic Fibonacci Retracement after Point D is confirmed. Fibonacci Retracement is classic and simple. However, PCZ provide more accurate prediction for the future movement of the price. Please use Potential continuation Zone for your trading.
If you are using Fibonacci retracement for risk management, then it is difficult to manage your preferred Reward/Risk ratio because there are too many lines and it is difficult to know which ones are important. We recommend to manage your trading with Pattern Completion Interval instead. Then use Potential Continuation Zone as the mile stone for your position management. This is one of the possible but efficient way.
It is just recommendation though. If you prefer the old way of using Fibonacci Retracement, you can still use them from our Harmonic Pattern Plus (and Harmonic Pattern Scenario Planner). However, we have seen many trader using the classic Fibonacci Analysis, they risk too much with bad draw down.
Manage your risk as the top priority in your trading. For your information, Harmonic Pattern Plus and Harmonic Pattern Scenario Planner provide the Pattern Completion Interval and Potential Continuation Zone exclusively.
You can also check our book: Guide to Precision Harmonic Pattern Trading: Mastering Turning Point Strategy for Financial Trading.