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.
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.
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.
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