Features for Harmonic Pattern Indicator

In this article, we will discuss some important features for Harmonic Pattern Indicator that detects Butterfly, Gartley, Bat, Alternate Bat, AB=CD, Shark, Crab, Deep Crab, Cypher, 5-0 Patterns, 3 Drives Pattern and so on. Harmonic patterns are a type of technical analysis tool used by traders to identify potential reversals or continuation patterns in financial markets. These patterns are based on Fibonacci ratios and geometric formations. Some key features of harmonic patterns include:

  • Fibonacci Ratios: Harmonic patterns rely on Fibonacci ratios to identify potential reversal or continuation zones in price action. Common Fibonacci ratios used in harmonic patterns include 0.382, 0.618, 1.272, and 1.618.
  • Geometric Shapes: Harmonic patterns are formed by specific geometric shapes or configurations of price movements on a chart. These shapes include Gartley patterns, Butterfly patterns, Bat patterns, Crab patterns, and more.
  • Symmetry: Harmonic patterns exhibit symmetry in their price swings. This means that corresponding price swings within the pattern often exhibit similar proportions and time durations, aligning with Fibonacci ratios.
  • Key Structural Points: Harmonic patterns have key structural points, such as X, A, B, C, and D points. These points represent specific price levels within the pattern and are crucial for identifying and confirming the pattern.
  • Potential Reversal Zones (PRZ): Each harmonic pattern has a Potential Reversal Zone (PRZ), which is the area where price is expected to reverse. This zone is typically defined by the convergence of Fibonacci ratios, structural support or resistance levels, and other technical indicators.
  • Pattern Completion Zone (PCZ): Each harmonic pattern has a Pattern Completion Zone (PRZ). Pattern Completion Zone is the price range in which a future price will hit the Point D to form the Harmonic Pattern with certain pattern matching accuracy, given what has already been observed in the price series. Pattern Completion zone should be associated with Risk Managment in Harmonic Pattern Trading.
  • Validation: Validating a harmonic pattern involves confirming that price action adheres to the expected proportions and ratios outlined by the pattern. Traders often use additional technical indicators or price action confirmation signals to validate harmonic patterns.
  • Risk Management: Like any trading strategy, risk management is essential when trading harmonic patterns. Traders typically set stop-loss orders to manage risk and protect against unexpected price movements beyond the PRZ.
  • Profit Targets: Harmonic patterns often come with predefined profit targets based on Fibonacci extensions or retracements. These targets are calculated from the D point of the pattern and can help traders determine their potential reward relative to their risk.
  • Timeframes: Harmonic patterns can appear on various timeframes, from intraday charts to daily and weekly charts. The significance and reliability of a harmonic pattern may vary depending on the timeframe it appears on.
  • Subjectivity: While harmonic patterns provide a systematic framework for analyzing price action, there is a degree of subjectivity involved in identifying and interpreting these patterns. Traders may disagree on the presence or significance of certain patterns, leading to some degree of variation in trading decisions.

We provide the harmonic pattern indicator with multiple of built in features. These features are powerful in helping you to trade with better accuracy. If you need to accurately predict the turning point of the market, then Harmonic Pattern Plus is the best tool in its kind. With our own research, our Harmonic Pattern Plus uses the precision harmonic pattern trading as its default trading strategy with Pattern Completion Interval, Potential Continuation Zone and Potential Reversal Zone. Yet, there are many other powerful features built in together for your superb trading experience.

Features for Harmonic Pattern Indicator is listed below:

  • 11 Harmonic Pattern Detection
  • Automatic stop loss and take profit recognition for superb risk management
  • Pattern Completion Interval for precision trading
  • Potential Continuation Zone detection for future price prediction
  • Potential Reversal Zone detection for Point D identification
  • Automatic Channel Detection to go with Harmonic Pattern (Optional)
  • Multiple timeframe Pattern Analysis
  • Multiple timeframe Pattern Detection
  • Guided Trading Instruction for professional traders
  • Pattern Locking and Unlocking feature in your chart
  • Even more, please find it out.

We have introduced the important concept for Harmonic Pattern Trading including Pattern Completion Interval, Potential Reversal Zone, and Potential Continuation Zone. For the practical application, you will need to blend these three concepts into your trading strategy. If Potential Reversal Zone and Pattern completion interval is concerning your entry, you can use Potential Continuation Zone for your exit. On the other hands, you can even create a trading strategy exclusively using Potential Continuation Zone as an entry and exit too. In this case, the way you trade is not so different from typical support and resistance trading. In terms of prediction power, Potential Continuation Zone will provide much higher accuracy to any other known support resistance lines.

If we compare Potential Reversal Zone and Potential Continuation Zone, I can tell that this is like Yin and Yang in the ancient philosophy. Like female-male, dark-light and old-young, Potential Reversal Zone and Potential Continuation Zone always exists together inseparable. If Potential Reversal Zone exists, then Potential Continuation Zone must exists too. As if a correct balance between Yin and Yang can achieve harmony and great power, we were able to predict the market most accurately with the Harmonic Pattern, which Potential Reversal Zone and Potential Continuation Zone are balanced well. Therefore, you will need to have good understanding on Potential Reversal Zone and Potential Continuation Zone for your successful 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.

1) Harmonic Pattern Plus

Harmonic Pattern Plus is one of the first automated Harmonic Pattern detection tool released in 2014. Harmonic Pattern Plus can detect 11 most popular harmonic patterns with well-defined trading entries and stops. Pattern Completion Interval, Potential Reversal Zone and Potential Continuation Zone are supported. In addition, other dozens of powerful features are added like Japanese candlestick detection, etc. Harmonic Pattern Plus is a repainting indicator. However, because of affordable price, this harmonic pattern detection indicator is loved by many traders.

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2) Harmonic Pattern Scenario planner

Harmonic Pattern Scenario planner is an advanced Harmonic Pattern indicator. On top of the features of Harmonic Pattern Plus, you can also predict future harmonic patterns through simulation with Harmonic Pattern Scenario planner. Harmonic Pattern Scenario planner is the tactical harmonic pattern tool designed for Professional harmonic pattern trader. Harmonic Pattern Scenario planner is a repainting indicator. However, the advanced prediction feature might be useful to trade without repainting in Harmonic Pattern Scenario planner.

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3) X3 Chart Pattern Scanner

X3 Chart Pattern Scanner is our next generation Harmonic Pattern and Elliott Wave Pattern Scanner. X3 Chart Pattern Scanner is non-repainting and non-lagging Harmonic Pattern Indicator. On top of that, X3 Chart Pattern Scanner can detect Elliott Wave Pattern and X3 Chart Patterns. X3 Chart Pattern Scanner can detect over 20 profitable chart patterns. The bonus is that you can also detect around 52 Japanese candlestick patterns as well as advanced Channel with X3 Chart Pattern Scanner.

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