Here we discuss the harmonic pattern.
Besides talking about what defines a harmonic pattern using fibonacci metrics, we also demonstrate how we apply fibonacci onto the chart. We then move onto the most important features of the harmonics and how we apply them in the proper way.
When I look at the material published out on the internet, much of it is useless as they cover only the patterns and none of the important trading stuff. The pattern on its own is practically useless, however a harmonic in the right context of price action is what makes it a winning pattern. Here we use a real butterfly harmonic example from a live chart and cover most of the aspects of the pattern for that scenario and explain the story behind the formation and what we as traders look for. This my friends is known as “context” with planning a trade.
Remember this if anything, when a person makes a statement or when you listen on a discussion or listen to someones opinion without context or background information, you will surely get it wrong as you jump to the wrong conclusions. Similarly a pattern without the background story, means very little in terms of trading.
We discuss the harmonic in the context of price action and then we cover other areas such as trade entries and risk management levels.
It’s obvious that hindsight makes it look easy but one needs to get familiar with the process, how we approach the chart and then how we look at the harmonic before we plan to enter a trade.
For the eager trader, believe me, this is a treat and you will appreciate it when you’re done with this video. If you want more, then you will need to subscribe to my online trading education platform to become a proficient trader.
The formations are derived from high probability Fibonacci retracements and extensions. These patterns are to point in advance potential price reversal zones in price action.