教学

Harmonic Patterns: Trade Execution

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Notes on the chart.
I ll try to put some examples..depends on response.

Do hit Like and comment.
Trade Safe, Be healthy.
Enjoy the weekend.

Regards
Bravetotrade

THE HARMONIC PATTERNS SERIES: III THE CRAB PATTERN

The Harmonic Pattern Series: II The Gartley Pattern

THE HARMONIC PATTERNS SERIES I: THE BAT PATTERN

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This is a random observation. A cypher pattern observed, not yet discussed in this series.
PRZ is at 0.786 XA..which is also near a potential channel uptrendline.
Reversal patterns like Long tail candles, bullish engulfing and piercing pattern are most preferred but price action in PRZ can also reflect slowing down of the CD wave selling pressure, which is quite visible in this case.

Once we are seeing slowing down..get down to a lower time frame for a more accurate entry.

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Read this first

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In the same stock there was a bullish BAT pattern. Notice how the price jumped sharply (long tailed doji in circle) from PRZ precursor to slow down in selling pressure.

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Get down to a lower timeframe for entry

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price hit the 0.386 but get back sharply; 0.618 was achieved in this eg but its not necessary that it ll be achieved in all cases..The second opportunity which we have discussed earlier was quite powerful.

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This is the third example. Price stalled in the PRZ.
One point that is worth noticing is that PRZ is a zone, not an absolute value. Margin of +/- has to be kept on the basis of extensions and retracements.

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Lets get down to lower timeframe for entry

0.386 was achieved but 0.618 never hit.

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This pattern was anticipated quite early and was traded in reverse :D

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There can be other type of entries..breakdown; retest; or some other pattern HnS etc. but in every case we have to keep RRR in mind.

These patterns are valid in all time frames but a PRZ in to previous S/R level can be more reliable.

Have fun !!!

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Look at this Pattern which seemed qualifying as Gartley but in the PRZ price halted for two days giving nice signal bars but no confirmation. Instead the price slammed down the PRZ.

Normally pattern failures on these higher timeframes signal further weakness. Currently price took support from 38.2% retracement level of the last upmove and bouncing.

Entry on the basis of harmonic pattern failed in this case.

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There was a very quick opportunity in the following pattern. let's see if there was an entry on lower timeframe.

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As you can see that these patterns are about reversal opportunities.

Guys it looks very easy in the hindsight but real time trading is often affected by the predominant trend and other biases.

It needs practice and knowledge to see which patterns should be taken and which not.

Ending the example section on this note.

Thanks for bearing with me.