Introduction of Harmonic Patterns
You must already know the basic graphic patterns, so you can read the patterns and formations that are formed. You can continue on more complicated patterns and formations and add some sophisticated technical tools to your forex trading.
Have you ever heard of Harmonic or Harmonic patterns? Yes, this pattern is a bit complicated and difficult to identify. But if you’ve managed to identify, then there is a great chance your trading generate good profit.
The whole idea of this harmonic pattern is that they help people see the possibility of motion retracements of the current trends.
Actually, we’ll use the other tools we’ve discussed, the Fibonacci retracement and the extension. If you do not already know this Fibonacci tool, you will not be able to use the harmonic pattern.
By combining this advanced tool to find out this harmonious price pattern, we can distinguish possible areas for the continuation of the overall trend.
Harmonious Price Pattern has several forms along with its development, such as the following:
These patterns are considered to resemble the shape of the name. But not as difficult as imagined to learn it. When you have understood it becomes easy to identify it.
After learning about these harmonious price patterns, we will look at the tools you need to trade this pattern successfully in the forex market.
For all these harmonic price patterns, the point is to wait for the whole pattern to finish before trading short or long.
The harmonic price pattern takes the geometric price pattern to the next level by using the Fibonacci number to determine the exact reversal level. Unlike other trading methods, Harmonic trading tries to predict future movements. This is very different from general methods that are reactionary and not predictive. The harmonic price pattern can be used to trade currencies in the forex market.