Summary: Harmonic Price Patterns

In our earlier lesson we have covered Harmonic Patterns, which we said are a type of complex patterns that occur naturally in financial charts based on geometric price action and Fibonacci levels. They were introduced to the trading world by Harold McKinley Gartley in 1932. These patterns also enable traders to distinguish possible areas for a continuation of the overall trend.

We also talked about the Six Harmonic Price Patterns

There are six harmonic price patterns:

• The ABCD Pattern

• The Three-Drive Pattern

• The Gartley Pattern

• The Crab Pattern

• The Bat Pattern

• The Butterfly Pattern

We were able to explain the 3-Step Price Pattern Recognition Process

The three basic steps in spotting harmonic price patterns include the following

Step 1: Locate a potential harmonic price pattern

Step 2: Measure the potential harmonic price pattern

Step 3: Buy or sell on the completion of the harmonic price pattern

Once more, harmonic price patterns are so accurate that they are very hard to figure out.

Added to knowing the steps, you need to have hawk-like eyes to point out potential harmonic price patterns and a lot of patience to stay away from jumping the gun and entering before the pattern is completed. Having adequate practice and experience, and trading using harmonic price patterns can result a lot of pips and profit in your forex trading.