I went to research all I could and read every harmonic trading book out there. Are you ready? Drawing any harmonic patterns requires the identification of the impulse leg, it is the foundation of all harmonic patterns. This is entirely up to the trader to decide. So what can you do?
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I went to research all I could and read every harmonic trading book out there. Are you ready? Drawing any harmonic patterns requires the identification of the impulse leg, it is the foundation of all harmonic patterns.
This is entirely up to the trader to decide. So what can you do? A possible solution to consider would be to select the impulse leg that coincides with a structure support or resistance. Patterns can be in the form of higher highs and lows, consolidation before breaking out or range bound market etc. The trading strategy has to make sense to me before I even dare to use it. Perhaps I would be more convinced if there are statistical tests that can prove Fibonacci has an edge in the markets.
Now if you come across studies that show Fibonacci has an edge, please share with me as I will be glad to look at it. It gets me high. Furthermore, harmonic patterns that do appear in trending markets are usually against the trend. When you do trade harmonic patterns in this scenario, you will find yourself cutting your trades many times. So, what can you do about it?
And if you want to capture big trends in the market, adopt a trend following strategy. Likewise, if you want to short in a range market but there is no bearish harmonic pattern, you can simply place your offer to short at resistance.
After all, you want to buy low sell high, right? Thus it is no surprise to find stops below the low of candle wicks and high of candle wicks.
And you know what happens when your stops are placed at an obvious level? It gets hunted. Typical stop hunt Because when you have enough traders placing stops in close proximity, it becomes an incentive for dealers to hunt them for quick profits.
When your stops below support get triggered, you will be selling to the dealers who will be buying from you. How do you overcome this problem? I would suggest you place your stops a distance away from X to give it more breathing room to withstand a stop hunt.
You can consider using 2 ATR as a gauge of how far away your stops should be. Leave a comment below and let me know your thoughts.
84: Harmonic Pattern Jedi Master Becomes Retail Trader Hero w/ Scott Carney
Description "The Harmonic Trader" - Signed copy from Scott Carney Harmonic Trading is a new and exciting area of technical analysis that utilizes the powerful synergies of Fibonacci measurement techniques to quantify specific price patterns. Like a combination to a safe, these strategies unlock valid market signals in an unprecedented fashion. The Harmonic Trader has quickly become a classic. The book presented a number of unprecedented techniques. Distinguishing ALL points within 5-point price structures by examining each Fibonacci calculation to validate the proper alignment that for each harmonic pattern.
Harmonic Trading Management Package
This brief statement does not disclose all of the risks and other significant aspects of trading in futures, forex and options. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts and contractual relationships into which you are entering and the extent of your exposure to risk. Trading in futures, forex and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. The risk of loss in trading commodity futures contracts and foreign currency can be substantial.
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Harmonic Pattern Software Ninja Trial