After covering the Fibonacci retracement and Fibonacci extension tool, then by combining them with levels, we can observe “Harmonic” patterns.
Harmonic patterns cannot be used on their own with fibonacci levels, even if they align correctly. What we need is context as well as symmetry between the waves. For example, AB wave should not move 20% in 1 hour and then wave CD
20% in 20 days. Time and symmetry are important factors when we look at trading these patterns as well.
Never trade harmonic patterns alone, as you need to look for at least 1 confluence with other chart elements. What are these chart elements, well they can be any at the level you are looking to buy
Officially you are not suppose to trade the C wave but instead wait for the D wave to finish because that can eliminate some of the risk however miss out much of the gain to wave D. Confidence is what makes the difference.
The trick is to look for certain confluences and possibly align them with a strategy of some sort.