Harmonic Pattern Indicator is the realization of particular theory or trading strategy or trading ideas to detect Profitable Harmonic Patterns for real world trading. As you guess there could be various ways to create the Harmonic Pattern Indicator, specially if you are looking for the profitable one. In addition, you need to know that there is always gap between theory (i.e. ideas or strategy) and practice in real world. Unfortunalyte, this is the same for the trading with Harmonic Pattern Indicator too. Hence, not all the harmonic pattern detection indicators are the same. In this article, we will try to provide you as much information as possible to get your head around the Harmonic Pattern Indicator. The main variations of Harmonic pattern indicators can be categorized as following four types. Users should understand the pros and cons of each variation to maximize their trading performance with harmonic patterns.
Type 1: Non lagging (fast signal) but repainting
option to enter from turning point. Indicator does not show the failed pattern in chart and last pattern can repaint. This is almost considered as standard Harmonic Pattern Indicator. Even if they are repainting, harmonic pattern trader just accept it as it is. 99% of time, this is the harmonic pattern product you will get from the market whether they are free or paid one. You can trade live with this indicators but historical patterns can not be used to fine tune your strategy.
Type 2: Lagging (slow signal) but non repainting
no option to enter at turning point (i.e. early signal). This type of indicator turns harmonic pattern indicator as slow as moving average cross over. It might be not overly attractive option for your trading. Indicator does not show the failed pattern. Hence, you can not use historical patterns to tune your strategy but last pattern does not repaint. You can trade live with this indicators but historical patterns can not be used to fine tune your strategy. Probably about 1% of harmonic pattern indicator is this type.
Type 3: Detecting pattern at point C but repainting
option to enter at turning point. Indicator detect pattern too early and you have to wait quite bit of time until price move near the point D. In fact, price may not move near point D. You might just waste your time waiting for the pattern. Indicator does not show the failed pattern and last pattern can repaint. You can trade live with this indicators but historical patterns can not be used to fine tune your strategy. Probably about 1% of harmonic pattern indicator is this type.
Type 4: Non lagging (fast signal) and non repainting
option to enter from turning point. At the same time, the pattern is not repainting. This is hybrid of all above three system and can be considered as the most powerful harmonic pattern indicator. You can trade live with this indicators and you can also use historical patterns to fine tune your strategy. With this indicator, you are complying perfectly with the statement “Trade What you See”.
To accomplish this post, you can read the full blog article about the types of Harmonic Pattern Indicator from the link below.
Here is the list of Harmonic Pattern Indicators for MetaTrader 4 and MetaTrader 5.
1. Harmonic Pattern Plus (2014)
Harmonic pattern plus is extremely good product for the price. With dozens of powerful features including Pattern Completion Zone, Potential Reversal Zone, Potential Continuation Zone, Automatic Stop loss and take profit sizing. This is type 1 harmonic pattern indicator.
With additional features of predicting future harmonic patterns, Harmonic Pattern Scenario Planner is the tactical harmonic pattern indicator with advanced simulation capability on top of the powerful features of harmonic pattern plus. This is type 1 and type 3 harmonic pattern indicator.
Below are the Links to Harmonic Pattern Scenario Planner
X3 Chart Pattern Scanner is next generation tools to trade with Harmonic Pattern, Elliott Wave Pattern and X3 chart patterns in Forex market. With non repainting and non lagging algorithm, this tool can detect with advanced Harmonic Pattern, Elliott Wave Pattern, X3 Pattern structure for your trading. This means you can customize the Harmonic Pattern or Elliott Wave Pattern according to your preferences. As a bonus, it provides around 52 Japanese candlestick patterns too. X3 Chart Pattern Scanner is type 4 harmonic pattern indicator, which means that you can fine tune your strategy using historical patterns while you are trading the same patterns on live trading.
In fact, all above trading setup is discussed in detail with the Book: Guide to Precision Harmonic Pattern Trading. If you want to learn harmonic pattern trading, then this is a good book to start with. The book provides you the trading strategy. It will also explain some practical concepts to trade with Harmonic Pattern including Pattern Completion Interval, Potential Reversal Zone, and Potential Continuation Zone. The book will help you to to identify the favorable entry and exit timing. With sound risk management concept, this book will introduce the rolling ball effect and how to use mutual patterns to control the rolling ball effect while you are predicting the turning point with Harmonic Pattern. The book is available in all the major book distributors.
If you want to access the free forex trading education, then you can also visit our trading education webpage here. We are dedicated to teach you the good Forex trading principle. We share the great educational materials at free or at affordable price.