In the today's article, I will share with you 4 best harmonic patterns for beginners. We will discuss the structure of each pattern and the rules.
Harmonic ABCD Pattern
That pattern is based on 3 legs of a price movement:
AB leg - impulse leg,
BC leg - retracement with the range of XA leg,
CD leg - impulse leg that has the same direction, the same time horizon and the same length as the XA leg
AB and BC legs should be equal or almost equal, that makes the pattern harmonic.
The completion point of the pattern - D point can be applied for predicting a pullback.
ABCD pattern can be bullish and bearish.
In a bullish ABCD pattern, AB leg is bearish.
D point of the pattern will be a safe point to buy from.
In a bearish ABCD pattern, AB leg is bullish.
D point will be a safe place to sell from. Learn My Harmonic ABCD trading strategy: https://www.vasilytrader.com/post/harmonic-patterns-trading-abcd-pattern
The next 3 patterns will be based on 4 legs of a move:
XA, AB, BC, CD and will have XABCD structure with the initial point of the pattern being X point.
D point will be a completion point of the pattern from where a pullback will be anticipated.
The type of the harmonic pattern will be identified with Fibonacci numbers. The exact placement of each point of the pattern will define the name of the pattern.
Harmonic Gartley Pattern
In Harmonic Gartley,
B point of the pattern should strictly be between 618 and 786 retracement of the XA leg.
C point should lie between 618 and 786 retracement of AB leg.
D point will be 1.272 extension of AB leg.
Bullish Gartley Pattern will be based on a bullish XA leg.
Bearish Gartley will be based on a bearish XA leg.
Harmonic Bat Pattern
In Harmonic Bat,
B point of the pattern should strictly be between 50 and 618 retracement of the XA leg.
C point should lie between 618 and 1 retracement of AB leg.
D point will be 886 retracement of XA leg.
Bullish Bat Pattern will be based on a bullish XA leg.
Bearish Bat will be based on a bearish XA leg.
Harmonic Cypher Pattern
In Harmonic Cypher,
B point of the pattern should strictly be between 382 and 618 retracement of the XA leg.
C point should lie between 1.272 and 1.414 extension of XA leg.
D point will be 786 retracement of XC leg.
Bullish Cypher will be based on a bullish XA leg.
Bearish Cypher will be based on a bearish XA leg.
These patterns are phenomenally accurate and they are very simple to recognize.
