It’s time to expand your forex trading arsenal with some more advanced tools. We’ll look at harmonic price patterns in this lesson.
These bad guys may be a little more difficult to grasp, but once identified, they can lead to some very big profits!
The whole point of these patterns is to assist individuals identify potential retracements of current trends.
In fact, we’ll use tools we’ve already discussed, such as the Fibonacci retracement and extensions!
By combining these fantastic techniques for detecting harmonic pricing patterns, we will be able to identify potential locations for the overall trend to continue.
In this session, we will look at the following Harmonic Price Patterns:
- ABCD Pattern
- Three-Drive Pattern
- Gartley Pattern
- Crab Pattern
- Bat Pattern
- Butterfly Pattern
Before moving on to Gartley and the animals, we’ll start with the more basic ABCD and three-drive patterns.
After learning about them, we’ll look at the tools you’ll need to successfully trade these patterns in the forex market.
The goal with all of these harmonic price patterns is to wait for the entire pattern to complete before entering any short or long trades.
You’ll understand what we mean later, so let’s get started!
Next Lesson: The ABCD and the Three-Drive