Harmonic scanners
This means over the long term, assuming you use some intelligent money management rules, You are going to make pips trading these patterns.īut as the picture I just showed you prove, spotting these chart patterns isn't as easy as taking a quick glance and then jumping into a trade. first Take profit target is at 1.28638, a profit is +285.9 pips,Īll of these prices are Fibonacci based, and anyone who follows Fibonacci lines knows they tend to run on the accurate side of things.īut the point is, even with some larger stop losses in place, the huge number of pips up for grabs on a winning trade means you only need to be right on One out of every three or four trades.Īnd with many on these patterns have a historical track record of 70%, 80% and even 90% winners.That is a 233 pip stop loss, which may be more than some traders can stomach. The Entry on this trade is 1.25779, and the stop is at 1.23447. Stocks, commodities, indexes, FOREX, Options, All of these investment vehicles are subject to Gartley chart pattern moves. Such as the Crab, the Bat, the Shark, the 5-0 but the most popular are the Gartley, butterfly, bat, and crab patternsĪrmed with this information, traders are now able to start drawing these patterns on their charts, Along with the related Fibonacci lines, And find winning trades on literally any and every chart they trade. This information was later enhanced by Larry Pesavento, who wrote a book called Fibonacci Ratios with Pattern Recognition, where he applied Fibonacci ratios to the Gartley pattern to better identify entries and exits.įinally, in his book "Harmonic Trading", Scott Carney introduced the trading world to various alternative Gartley Patterns: Gartley wrote a book called Profits in the Stock Market where he identified a 5 point pattern he had discovered. More along the lines of a 60, 70, even an 80% chance or higher. Once that pattern reaches a certain point, traders have significant percentage chance of seeing price move in one direction.īy a significant percentage I mean well beyond a 50-50 chance. When price enters a ranging pattern after a period of trending, it will often move in identifiable pattern. Well, to start, you need to understand that price action creates only three sorts of chart behaviors: ranging, breakouts and trending. So What Exactly are Harmonic Trading Patterns.? These patterns have proven themselves over time to be 70, 80 and even 90% successful as long as certain trading conditions are met. So today we are going to look at one class of chart patterns called Harmonic Trading Patterns (Which are also known as Gartley patterns after the trader/author who wrote the book on the subject). Now it's time to step up to the next level in your education and start looking for chart patterns that have repeatedly proven to be successful. That alone probably improved your trading by 100% Once you figured out that didn't work, you probably started doing a little more digging.Īnd learned how lines of Support and Resistance played such a huge role in successful trading. If you are like most traders, you started out using two or three indicators, maybe bought a couple of EAs that claimed to be money making miracles.