Harmonic Pattern – Turning Point and Trend
This article “Turning Point and Trend” tries to answer you on when to use Harmonic Pattern Trading in terms of the four market cycle including Birth, Growth, Maturity and Death. One way to understand the turning point in the financial market is to study its causes. One such explanation is to look at the price dynamics in Forex and Stock market. After extensive price rise, the price must fall because many people want to sell them to materialize the profit. Likewise, after extensive price fall, the price must rise because many people think they are cheap and they will start to buy them again. This price dynamics will generate the bullish turning point and bearish turning point in the financial market.
Beside the price dynamics, we can find other causes of the turning point from the economic point of view. For example, in the Stock market, the intrinsic value of the company is one important cause of the turning point. This connects the turning point with the value investing principle created by Benjamin Graham. Similarly, the rise and fall of the currency price are often followed by the fundamental data release in the Forex market. Fundamental data release is another important cause of the turning point. At the same time, correlation and cointegration suggest the presence of a long-run equilibrium towards which the economic system converges over time. The dynamics can be observed and explained well in the pairs trading strategy.
Understanding the causes of the turning point in the economic point of view can help us to use the turning point better in our trading. At the same time, it can help us to find the flow of the smart money. As long as the price continuously rises and falls, we can utilize the fractal wave in our price analysis. After extensive price rise, the price must fall to realize the overvaluation of the price. Likewise, after extensive price fall, the price must rise to realize the undervaluation of the price. This price mechanism builds the complex zigzag path of the price movement in the financial market. Most of price data in the Forex and Stock market tend to follow this. Therefore, price pattern analysis are often heavily used to predict the price movement.
If you want to become profitable trader, then you need to decide when your capital to dive into the market. The best way is doing it with the market rhythm, i.e. the market cycle. This article will provide you the clear answer on how to tune your entry with the market. This is the first step for any trader in choosing their strategy in fact. You would also revise the pros and cons of the turning point strategy, semi turning point strategy and trend strategy. This article is the part taken from the draft version of the Book: Profitable Chart Patterns in Forex and Stock Market: Fibonacci Analysis, Harmonic Pattern, Elliott Wave, and X3 Chart Pattern.
https://algotrading-investment.com/2019/07/06/turning-point-and-trend/
Profitable Chart Patterns in Forex and Stock Market
At the same time, our chart pattern book: “Profitable Chart Patterns in Forex and Stock Market” explore how harmonic patterns can be used to identify potential turning points and trends in financial markets. Here’s what such an chart pattern book might cover:
- Introduction to Harmonic Patterns: The article would likely start with an introduction to harmonic patterns, explaining what they are and how they are derived from Fibonacci ratios. Harmonic patterns, such as the Gartley, Butterfly, Bat, and Crab patterns, are geometric price patterns that traders use to identify potential reversal or continuation points in the market.
- Recognition of Harmonic Patterns: The article would explain how traders can recognize harmonic patterns on price charts. This may involve discussing the specific criteria that define each pattern, including the alignment of specific Fibonacci ratios with price swings.
- Significance of Turning Points: Turning points represent moments in the market where a trend is likely to reverse direction. The article would discuss the importance of identifying these turning points accurately for traders to capitalize on potential profit opportunities.
- Identification of Trends: Trends are directional movements in the market that persist over time. The article would likely explain how harmonic patterns can help traders identify the direction of the prevailing trend and distinguish between trending and ranging market conditions.
- Trading Strategies: The article might explore different trading strategies that incorporate harmonic patterns to trade turning points and trends effectively. This could include entry and exit techniques, risk management principles, and the use of additional technical indicators for confirmation.
- Case Studies and Examples: To illustrate the concepts discussed, the article may include real-world examples and case studies demonstrating the application of harmonic patterns in identifying turning points and trends across various financial instruments and timeframes.
- Conclusion and Summary: The article would likely conclude with a summary of key takeaways and recommendations for traders looking to integrate harmonic patterns into their trading strategies effectively.
Below are the list of automated Harmonic pattern Indicator developed for MetaTrader 4 and MetaTrader 5 platform.
Harmonic Pattern Plus
One of the first automated Harmonic Pattern detection tool released in 2014. It 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. Because of affordable price, this harmonic pattern detection indicator is loved by many traders. Please note that this is repainting and non lagging harmonic pattern trading system.
https://www.mql5.com/en/market/product/4488
https://www.mql5.com/en/market/product/4475
https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/
Harmonic Pattern Scenario planner
It is an advanced Harmonic Pattern indicator. On top of the features of Harmonic Pattern Plus, you can also predict future harmonic patterns through simulation. This is the tactical harmonic pattern tool designed for Professional harmonic pattern trader. Because of affordable price, this harmonic pattern detection indicator is loved by many traders. Please note that this is repainting and non lagging harmonic pattern trading system.
https://www.mql5.com/en/market/product/6240
https://www.mql5.com/en/market/product/6101
https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/
Both Harmonic pattern plus and Harmonic Pattern Scenario planner are the excellent trading system at affordable cost. However, if you do not like repainting Harmonic pattern indicator, then we also provide the non repainting and non lagging harmonic pattern trading. Just check the X3 Chart Pattern Scanner below.
Link to X3 Chart Pattern Scanner
https://www.mql5.com/en/market/product/41993
https://www.mql5.com/en/market/product/41992
https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/
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