Following on from Harmonic patterns part 1.
Recap: Harmonic patterns form geometric price patterns with angles based on Fibonacci numbers, which can define precise turning points in price.
To put it briefly, harmonic patterns attempt to predict future movements in price action.
Utilising harmonic patterns can provide you with both entry and take profit levels, as well as trend reversals.
Drawing such patterns requires a keen eye for confluence, symmetry, and time.
Following on from Harmonic patterns part 1.
Recap: Harmonic patterns form geometric price patterns with angles based on Fibonacci numbers, which can define precise turning points in price.
To put it briefly, harmonic patterns attempt to predict future movements in price action.
Utilising harmonic patterns can provide you with both entry and take profit levels, as well as trend reversals.
Drawing such patterns requires a keen eye for confluence, symmetry, and time.
You shouldn't look to trade off harmonic patterns alone, so always incorporate reliable confluence such as; horizontal levels, Fibonacci, and even areas of volume and liquidity.
Before you go wild trying to trade these patterns, practice drawing them on charts and always refer to the cheat sheets.
Key Points of the Lesson
IMPLEMENTATION ADVANCED HARMONIC PATTERNS
Cypher ⇒ advanced Harmonic pattern that uses the Fibonacci extension.
Shark and 5-0 ⇒ have a flexible start and a powerful finish.
CYPHER
Check cheat sheets.
SHARK
Check cheat sheets.
5-0
Check cheat sheets.
TIPS & TRICKS
Shark volume profile ⇒ BC should be on less volume than XA.
Cypher ⇒ B should not reach the 0.786 of XC
Trade from point D of the Harmonic pattern. Experienced traders can trade an Harmonic from point C.
Never trade a Harmonic pattern alone ⇒ always look for confluence.
Use market structure for stop losses and targets.
TAKE HOME MESSAGE
Advanced Harmonic patterns:
Cypher, Shark and 5-0
Best used on higher time frames with other confluence.