Harmonic Pattern trading is a way to trade using the strategy of price action and price pattern in Forex and Stock market. To use the Harmonic Pattern Trading, first you need to understand what is the Harmonic Pattern. Loosely speaking, Harmonic Pattern is the kind of chart pattern. Technically speaking, Harmonic patterns are another fractal wave patterns that frequently used by many financial traders. Harmonic patterns are typically made up from two or three triangles (i.e. three price swings or four price swings). The structures of the harmonic pattern are based on the Fibonacci ratios. Hence, some people consider Harmonic pattern as an advanced Fibonacci price patterns. Harmonic patterns include Butterfly, Gartley, Bat, Alternate Bat, AB=CD, Shark, Crab, Deep Crab, Cypher, 5-0 Patterns, 3 Drives Pattern and so on.
Harmonic Pattern Trading is not bullet proof but if it is used wisely, then it can yield enough edge to pull the profits from the market. However, its theory and practice are widely varying from a trader to trader. Here is the scientific guide on harmonic pattern trading. You will find the guide of Harmonic pattern trading in this book very useful if you are a day trader.
Book Title: Guide to Precision Harmonic Pattern Trading
Book Subtitle: Mastering Turning Point Strategy for Financial Trading
We also provide the automated harmonic pattern detection tools in MetaTrader 4 and Metatrader 5. You might be interested in the list of Harmonic Pattern scanner below. This tool can help you to detect various Harmonic Patterns automatically. So this harmonic pattern scanner can save you a lot of time to detect Harmonic Patterns manually.
1. Harmonic Pattern Plus (2014)
Harmonic pattern plus is extremely good product for the price. It is the Type 1 Harmonic Pattern Scanner as explained above. With dozens of powerful features including Pattern Completion Interval, Potential Reversal Zone, Potential Continuation Zone, Automatic Stop loss and take profit sizing.
Harmonic Pattern Scenario Planner is also the Type 1 Harmonic Pattern Scanner as explained above. With additional features of predicting future harmonic patterns, this is very tactical harmonic pattern scanner with advanced simulation capability on top of the powerful features of harmonic pattern plus.
X3 Chart Pattern Scanner is our next generation Harmonic Pattern Trading Tool. This is non-repainting and non-lagging Harmonic Pattern Scanner as explained above. Therefore, this is the Type 4 Harmonic Pattern Scanner. On top of that, this tool can detect Elliott Wave Pattern and X3 Price Patterns. As a bonus, this scanner can detect around 52 Japanese candlestick patterns for your trading. This is the most advanced Harmonic and Elliott wave pattern detector in the market.