Categories: Investments

Harmonic Pattern AFL

Harmonic Trading  AFL

1st of all What is Harmonic Trading?

Harmonic trading is base on price patterns and Fibonacci ratios. with base of both its highly probable point of reversal patterns.

Harmonic trading also say Harmonic Patterns – which patterns repeat themselves.base on rule of methodology of primary ratio like – 0.382 , 0.50 , 0.618 , 1.00 , 1.41, 2.0, 2.24, 2.618, 3.14 and 3.618.

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Why use Harmonic Trading / Patterns ?

Market always follow trend , consolidation and again re – trend behaviors. Harmonic Trading is best way to predict next trend during consolidation behavior. Harmonic Patterns trading concepts laid by Mr. Gartley in 1932.

Gartley mention 5 points in his book. few others also work on this patterns.

Patterns mostly like belows:

  • Gartley
  • Bat
  • Butterfly
  • Crab
  • AB=CD
  • Shark
  • 5- 0

In the following graphic, Types of Fibonacci are shown to how retracement, extension, projection and expansion swings are applied using Fibonacci ratios.

Above is examples of Harmonic Patterns,

Gartley patterns is famous patterns among all other Trading patterns built by replacements 2 legs and Swing 2 its formatting a 5 point patterns.

Harmonic patterns are complex and highly technical to understand and master them. but Our HT ( Harmonic Patterns Trading AFL ) helps you to find out this complex trading patterns 

How to Use Harmonic Trading AFL

  1. Download HT afl and open text file
  2. Copy all code and open Amibroker formula editor
  3. Paste code in Amibroker Formula Editor
  4. Run code in Explore Locate a Potential Harmonic Trading Pattern
  5. Cross check with RSI for strength Buy & Sell Signal

Note : Other indicator theories (CCI, RSI, MACD, DeMark…) can be used along with them.

Harmonic-Trading AFL – Download

Trade Entries and Stop : 

  1. Always wait for next candle after Pattern completion
  2. Follow Money Management Rules Strictly ( Money Management Rules Blog )

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Happy Trading

Investallign

Investallign

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