Limitation of Harmonic Pattern Indicator and Scanner
In general, we will explain the limitation of all the Harmonic Pattern indicator and scanner available in the internet, regardless of product type and provider. Even though Harmonic Pattern Plus and Harmonic Pattern Scenario Planner provide the surprisingly powerful features for harmonic pattern trading, still they have a limitation like all other harmonic pattern indicator and scanner have. The repainting harmonic pattern indicator does not show the failed historical patterns in the chart. Therefore it is not easy to estimate their trading performance or success rate in the historical chart. It would be really great if the trading performance can be estimated in the historical chart. After that, they can apply the trading strategy directly to the real trading. This will be the sure fire things for your trading. Unfortunatlely, this is not possible with the repainting harmonic pattern indicator. This is the limitation for any Harmonic Pattern Indicator at the moment, regardless of product types and companies. This is a trade off as the harmonic pattern indicator want to tell the turning point as quickly as possible for your trading. At some point, we gave to understand there is a trade off between this repainting and fast turning point signals. As the fast turning point signals are important to profit, many traders do not mind this trade off.
Anway, let us explain how this repainting works in harmonic pattern. To give you some idea, let us start with some example. For example, when you trade with moving average cross over strategy, you can see the failed cross over as well as successful one in your chart. This helps you to estimate the true success rate of your strategy. You can work to improve your strategy with various filters and secondary confirmation techniques in your chart.
For all harmonic pattern indicator, this is not the case. They do not show the failed historical patterns in chart and only show successful harmonic pattern. Hence, you are not able to estimate the true success rate of harmonic patterns from your chart. Simply speaking you can not test your strategy with repainting harmonic pattern indicator. Starters can misunderstand the true performance of harmonic pattern by looking at the successful patterns in char. They can start trading with overly optimistic but not prepared.
Then why all harmonic pattern indicator do not show the failed historical patterns in chart like moving average cross over strategy ? Is it because the indicator developer are not honest ?? Not at all. It was simply impossible to create such algorithm showing the failed historical patterns in chart. The reason was simply the technological barrier. It is just like we could not fly in eighteen century because we can not build airplane.
For experience harmonic pattern trader, the problem is still there but not as bad as starters. For starters in harmonic pattern trading, this is great limitation because they are not able to see the true performance of harmonic pattern. They do not know how to avoid this failed patterns and improve their true trading performance. Here is the summary:
- Harmonic pattern indicator does not show failed patterns in chart. This is just due to the technological barrier (i.e. technologically impossible).
- You can not test or create your strategy with successful patterns alone in chart. You must need to see failed historical patterns too.
- To improve your trading performance, you must account for failed patterns in chart and you need to develop strategy how to avoid these failed patterns using extra filters or secondary confirmation techniques.
I wrote this article to provide you what to expect with Harmonic pattern trading. Harmonic Pattern trading is good system to use but you still need to have a realistic view about harmonic pattern trading. This is not bullet proof strategy. You can not rely on the successful harmonic patterns alone to test and to create your strategy. Please know this before using any Harmonic Pattern Indicators.
There is even another article discussed about this in details here.
https://algotrading-investment.com/2019/03/15/harmonic-pattern-indicator-types/
With repainting harmonic pattern indicator, you have be careful with someone present you with inflated success rate. Typically this happens to some commercial people who want to sell indicators and course materials, etc. Do not get fooled by these unrealistic numbers. When things are too good to be true, you know that you have to avoid them. You can read more information about the inflated success rate here:
https://algotrading-investment.com/2019/03/15/harmonic-pattern-success-rate/
Fortunately, we have broken this technological limitation of Harmonic Pattern indicator. We made break through the critical technological barrier in 2018 (EFW Pattern Trader) and 2019 (X3 Chart Pattern Scanner). We have developed non repainting and non lagging harmonic pattern indicator first time in history. X3 Chart Pattern scanner shows the true performance of harmonic pattern and Elliott wave patterns in chart. X3 Chart Pattern Scanner can help you to understand, to test and to create your strategy with true performance of harmonic patterns overcoming the main limitation of any other Harmonic Pattern Indicator and Scanner.
Link to Video: https://www.youtube.com/watch?v=uMlmMquefGQ
Below is the direct link to X3 Chart Pattern Scanner.
https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/
https://www.mql5.com/en/market/product/41993
https://www.mql5.com/en/market/product/41992
In spite of the repainting, the Harmonic Pattern Plus is the superb Harmonic Pattern Detection tool. With multiple of powerful features like below. People love to have them at affordable price. They are indeed cheaper than the Non Repainting and Non Lagging Harmonic Pattern Scanner (=X3 Chart Pattern Scanner). Hence, do not forget to have a look at our Harmnic Pattern Plus if you want to use the Harmonic Pattern Indicator at affordable price.
- 11 Harmonic Pattern Detection
- Automatic stop loss and take profit recognition for superb risk management
- Pattern Completion Zone detection for precision trading
- Potential Continuation Zone detection for future price prediction
- Potential Reversal Zone detection for Point D identification
- 52 Japanese Candlestick Pattern Detection (optional to use, you can swtich on and off)
- Automatic Channel Detection to go with Harmonic Pattern (Optional to use, you can switch on and off)
- Multiple timeframe Pattern Detection across all timeframe
- Guided Trading Instruction for professional traders
- Pattern Locking and Unlocking feature in your chart
- Even more, please find it out.
Below is the landing page for Harmonic Pattern Plus for MetaTrader 4 and MetaTrader 5.
https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/
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