Today, Forex trading is becoming more popular and even among persons who are not among the financial elite. With this rise in the popularity of Forex trading, Harmonic pattern trading has become one of the most rewarding trading techniques. If you are not a financial elite, this trading technique might be quite tricky to wrap your head around. In this article, I am going to help you understand all the aspect of this trading technique. This will help you increase your success rates in Forex trading and take you to the next level as a trader. Harmonic trading take advantage of geometric price patterns and progress it to the other level by utilizing numbers of Fibonacci to identify exact turning points. In contrast to the conventional trading methods, the Harmonic trading patterns try to predict the future movements. This unique approach is what has made this technique very successful in Forex trading. This trading technique combines math and patterns to make a trading method that is precise and relies on the premise that patterns usually repeat themselves. The primary ratio and its derivatives (0.618 or 1.618) make the foundation of this methodology. There are other complimenting ratios to this foundation including 0.382, 0.50, 1.41, 2.0, 2.24, 2.618, 3.14, and 3.618. The primary ratio, which is the foundation of Harmonic pattern, can be found in almost all environmental and natural events and structures. This is also true for man made events and structures. As the patterns repeat within the society and throughout nature, the ratio also exists in the financial markets. The financial markets are influenced by societies and environments which they trade, both of which have patterns and can be predicted. You are bound to find patterns of varying magnitudes and lengths and to predict the future movements as a trader; you have to apply the Fibonacci ratios as a trader. The Harmonic trading method is widely attributed to Scott M. Carney and has been bettered by others who have not only contributed to its perfection but also found patterns and levels that improves the performance. Measuring the geometry and the Fibonacci ratio to define each Harmonic pattern is not easy and time consuming. Thanks to Harmonic scanner which is a big help for Harmonic traders, since the software can detect almost all patterns. So you don’t just cut the time to detect a pattern, more over you don’t miss any potential opportunity.


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