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Harmonic Pattern Analysis An Anticipation To The Price Reversal Movement

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Harmonic Pattern Analysis An Anticipation To The Price Reversal Movement

June 04
14:05 2020
A high accuracy price movement analysis for intermediate and advance traders

June 4, 2020 – There are various strategies and methods in market technical analysis. One of the most favorite to master is Harmonic pattern method. Gartley pattern is the first pattern found in 1932 which spearheaded the research to the next Harmonic patterns. After H.M. Gartley published his book “Profits in Stock Market”, Larry Pesavento did a research that improved the pattern with Fibonacci ratios. Some decades later, Scott M. Carney published his book “Harmonic Trading” which consists of additional popular Harmonic patterns like Crab, Bat, Shark and Butterfly. Since the day, many traders are using the method to predict the swing of a market.

What makes Harmonic pattern trading special is the way the method anticipate the Potential Reversal Zone (PRZ) and also the exact Potential Reversal Level (PRL) with highly accuracy. Experienced Harmonic traders could predict the price reversal with up to 85% accuracy. Not to mention, the ability to take a position at the beginning of a new trend gives the traders higher reward and lower risk. While trend follower traders have RR ratio of 1:1 up to 1:2, the trend reversal traders could have RR ratio of 1:3 up to 1:5 or even more. This is something that interested thousands of Forex traders to leave the other methods and focus on this method alone.

Since the method can be implemented in any instrument and almost any time-frame of Forex market, traders get a lot of opportunity in every single day. However not all opportunities need to take. They would like to execute less than a half of the occuring opportunities. To catch all the good opportunities, the traders can not monitor the chart manually. Instead, they have to use Harmonic pattern scanner, a software that helps Forex traders to monitor all given instruments in all given time-frames at the same time.

A good Harmonic Scanner could even measure the winning potential rate of an opportunity. Since two or more patterns may occur at the same instruments in different timeframes with different directions, then the scanner need to eliminate the less potential ones and show only the highest potential opportunities. An advanced scanner like FSO Harmonic Scanner could also measure the potential reach of a reversal, which is the right place to put Target Profit of the position.

For traders who are not familiar with pattern scanner, it is recommended to first test the scanner in back test mode with Forex Tester software. The tests will help the traders to have a good skill in quick execution and also to define which instruments provide the highest win rate. In case the traders face opportunities on different instruments at the same time, they know which ones they should take and which one they should ignore.

To know more other useful trading tools and strategies, visit

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