{"id":9693,"date":"2022-10-12T19:53:05","date_gmt":"2022-10-12T19:53:05","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9693"},"modified":"2022-10-12T19:53:05","modified_gmt":"2022-10-12T19:53:05","slug":"3-steps-to-trading-harmonic-price-patterns","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/3-steps-to-trading-harmonic-price-patterns\/","title":{"rendered":"3 Steps to Trading Harmonic Price Patterns"},"content":{"rendered":"\n<p>As you may have guessed, profiting off&nbsp;<strong>Harmonic Price Patterns<\/strong>&nbsp;is all about being able to spot those \u201cperfect\u201d patterns and buying or selling on their completion.<\/p>\n\n\n\n<p>There are three basic steps in spotting Harmonic Price Patterns:<\/p>\n\n\n\n<ul><li><strong>Step 1:<\/strong>&nbsp;Locate a potential Harmonic Price Pattern<\/li><li><strong>Step 2:<\/strong>&nbsp;Measure the potential Harmonic Price Pattern<\/li><li><strong>Step 3:<\/strong>&nbsp;Buy or sell on the completion of the Harmonic Price Pattern<\/li><\/ul>\n\n\n\n<p>By following these three basic steps, you can find high probability setups that will help you grab those oh-so-lovely pips.<\/p>\n\n\n\n<p>Let\u2019s see this process in action!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 1: Locate a potential Harmonic Price Pattern<\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade10-harmonic-example1.png\" alt=\"Locate a potential Harmonic Price Pattern\" title=\"Locate a potential Harmonic Price Pattern\"\/><\/figure>\n\n\n\n<p>Oh wow, that looks like a potential Harmonic Price Pattern!<\/p>\n\n\n\n<p>At this point in time, we\u2019re not exactly sure what kind of pattern that is.<\/p>\n\n\n\n<p>It LOOKS like a three-drive, but it could be a Bat or a Crab\u2026<\/p>\n\n\n\n<p>Heck, it could even be a Moose!&nbsp;?<\/p>\n\n\n\n<p>In any case, let\u2019s label those reversal points.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 2: Measure the potential Harmonic Price Pattern<\/h2>\n\n\n\n<p>Using the Fibonacci tool, a pen, and a piece of paper, let\u2019s list down our observations.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade10-harmonic-example2.png\" alt=\"Measure the potential Harmonic Price Pattern\" title=\"Measure the potential Harmonic Price Pattern\"\/><\/figure>\n\n\n\n<ol><li>Move&nbsp;<strong>BC<\/strong>&nbsp;is .618 retracement of move AB.<\/li><li>Move&nbsp;<strong>CD<\/strong>&nbsp;is 1.272 extension of move BC.<\/li><li>The length of AB is roughly equal to the length of CD.<\/li><\/ol>\n\n\n\n<p>This pattern qualifies for a bullish ABCD pattern, which is a strong buy signal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step 3: Buy or sell on the completion of the Harmonic Price Pattern<\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade10-harmonic-example3.png\" alt=\"Buy or sell on the completion of the Harmonic Price Pattern\" title=\"Buy or sell on the completion of the Harmonic Price Pattern\"\/><\/figure>\n\n\n\n<p>Once the pattern is complete, all you have to do is respond appropriately with a buy or sell order.<\/p>\n\n\n\n<p>In this case, you should buy at point D, which is the 1.272 Fibonacci extension of move CB, and put your stop loss a couple of pips below your entry price.<\/p>\n\n\n\n<p>Is it really that easy?<\/p>\n\n\n\n<p>Not exactly.<\/p>\n\n\n\n<p>The problem with harmonic price patterns is that they are so perfect that they are so difficult to spot, kind of like a diamond in the rough.<\/p>\n\n\n\n<p>More than knowing the steps, you need to have hawk-like eyes to spot potential harmonic price patterns and a lot of patience to avoid jumping the gun and entering before the pattern is completed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As you may have guessed, profiting off&nbsp;Harmonic Price Patterns&nbsp;is all about being able to spot those \u201cperfect\u201d patterns and buying or selling on their completion. There are three basic steps in spotting Harmonic Price Patterns: Step 1:&nbsp;Locate a potential Harmonic Price Pattern Step 2:&nbsp;Measure the potential Harmonic Price Pattern Step 3:&nbsp;Buy or sell on the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[836],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9693"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9693"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9693\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}