Automatic Channel in Harmonic Pattern Indicator
In this article, we provide some explanation how to combine the channel with Harmonic Pattern to improve your trading performance with the objective goal. We have spotted that channels are merely a pair of support and resistance lines aligned in parallel. In general, there is various way of drawing channels for your trading. Sometimes, you can draw the channel by connecting several peaks and troughs in your chart. In addition, Elliott suggested that channelling technique could be useful devise to anticipate the future wave movement. For example, Elliott developed the three channelling techniques when Wave 2, 3 and 4 is completed respectively.
In Harmonic Pattern Indicator, we provide a regression channel to enhance the Harmonic Pattern Trading. A regression channel is a technical analysis tool that can capture the price actions between two given points in time. When the price nears the top or bottom of the channel, it indicates that the price may meet resistance or support. Regression channels are not meant to forecast exact highs or lows. However, they can simply notify a trader that the price has entered an potential area where the price has tended to reverse from in the past or that the price has entered an potential area where the price can continue with strong momentum. Regression channels also help with setting profit targets and stop target. For example, if the price bounces off the bottom of a regression channel, it could rally toward the top of the regression channel.
One thing you need to know is that a regression channel is mostly used as a supporting tool for other technical analysis. Nowdays, it is rare to see any trader relying entirely on a regression channel alone. For example, a regression channel can be used together with Harmonic Pattern.
To use the Harmonic Pattern, 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 is a powerful chart pattern trading system. We can indeed incorporate the Harmonic Pattern with a regression channel.
We provide powerful automatic regression channel features in the Harmonic Pattern Indicator. To enable the automatic Channel Function, just set Use Channel = true under Channel Parameter inputs. Together with Harmonic Pattern and Elliott Wave patterns, the provided automatic channel can be the great help for your trading. Enjoy this powerful features. This feature applies to Harmonic Pattern Plus, Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner.
Important Note to read
For your information, the provided channel are dynamic. As new bars are arrived in your chart, it will update the size of Standard deviation and 95% intervals in real time. Please bear this in your mind when you are using the provided channel. Another important note is that we provide Double Standard Deviation Channel for X3 Chart Pattern Scanner. This is the channel indicator specially tuned to work for Harmonic Pattern and X3 Pattern. It is more advanced Channel than the one shown in the screenshot below. In addition, you can watch the YouTube Video to feel what is the automated harmonic pattern indicator like. For your information, we provides two YouTube videos with title and links below.
YouTube “Harmonic Pattern Indicator”: https://youtu.be/CzYUwk5qeCk
YouTube “Non Repainting Non Lagging Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ
Harmonic Pattern Plus
Harmonic Pattern Scenario Planner
X3 Chart Pattern Scanner