The AB=CD harmonic is reversal patternDepending on the context, it can be bullish or bearishIt should follow specific fibonnaci ratios : BC is the 61.8 percent Fibonacci retracement of ABCD is the 127.2 percent Fibonacci extension of BC Interested in learning more...
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Did you know there are more than 10 different harmonic patterns?
They come in different shapes and sizes but they all share something in common : they are made of mathematical ratios and are made of 4 to 6 points.
Every single harmonic trading pattern detailed
Below you’ll find the ultimate database with every single harmonic pattern (and all the other types of technical analysis chart patterns if you are interested: candlestick patterns and traditional patterns). Each harmonic pattern has a dedicated detailed article. Even though these patterns are quite complex patterns, we tried to make it as simple as possible and each article goes into detailed explanation, giving you examples and data. It’ll help you clearly understand each pattern and give you the knowledge and confidence to spot them and use them in real life. No more doubt about what makes a specific pattern and how well it works.
This extensive cheat sheet will definitely give you an edge and let you understand and recognize every pattern. Plus at PatternsWizard, our absolute focus is to bring you data-driven performance statistics. So for most patterns (articles below) you’ll find data about their performance and reliability (how often they confirm, reach the target or stop, how often they appear, …) to adjust your trading strategy.
Harmonic patterns follow very strict requirements
Scott Carney discovered and formalised most of the harmonic patterns of various financial markets. These patterns are a succession of up and down legs (price moves). Depending on the pattern, they are composed of 3 to 5 legs (created by 4 to 6 points). In addition, these legs follow strict mathematical ratios. Fibonacci levels are the main retracement levels used for harmonic patterns. Also, each Fibonacci ratio has a different fundamental to it (like the golden ratio: 1.618).
The Fibonacci retracements or extensions create potential reversal zones. Each pattern takes these notions into their conception with some specificities. For example, the most famous ones are the crab pattern, cypher pattern, shark pattern and many more (which you’ll find all below).
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How can these harmonic patterns help you enhance your trading strategy?
Depending on the pattern (each pattern can tell a different story), they can be a hint for :
- Reversal patterns : it predicts price will reverse and move in the opposite direction
- Continuation patterns : it predicts price will continue its move in the same direction
Furthermore, this pattern can be a bullish pattern (meaning it hindsights for a price move up) or a bearish pattern (meaning it hindsights for a price move down).
If you want to learn more about these patterns, you can check each pattern’s article below. If you prefer to enroll in a video course (I know some people prefer videos, maybe it’s your case), you can check the two Udemy courses I shortlisted for you: Forex Harmonic Pattern Trading – With Multiple Chart Examples & Harmonic Trading: The Art Of Trading With Low Risk.
Want to go into the details of a specific harmonic pattern. You’re at the right place!
These patterns often have very imaginative names. Feel free to discover the detailed article for each and every harmonic pattern right below :
The Gartley pattern is a 4-legged harmonic patternIt can be bullish or bearish It follows clear fibonacci levels (see the Gartley ratios paragraph for detail) Interested in learning more about harmonics pattern in general?You'll love this two courses I shortlisted for...
Harmonic trading is a kind of technical analysis generally used across futures, stocks and forex. Harmonic trading makes use of particular price patterns which are subject to alignment of specific Fibonacci extension and retracement levels. As a result of the...
The cypher pattern trading strategy teaches traders how to correctly trade and draw the cypher pattern. The cypher harmonic pattern can be used on its own and provide traders a profitable forex trading strategy. It is not surprising that geometric patterns are used in...
When you decide to trade, the secret to becoming successful is in reading patterns. Harmonic price patterns take geometric price patterns to the next level by applying Fibonacci numbers to define specific turning points. Unlike other more trading processes, this...
When it comes to harmonics, trading forex is very similar to the animal world. After crabs and butterflies, sharks have come to share their name with popular five-point patterns used in trading. A very new pattern, the shark harmonic pattern, was discovered by Scott...
The Bat harmonic pattern is close to the Gartley pattern. It is a retracement and continuation pattern that comes up when a trend temporarily changes its direction but then continues on its original course. The Bat harmonic pattern is a reversal pattern.It follows...
Trading with technical analysis demands traders to depend mostly on a mixture of technical indicators and trade based on the signals from this approach. Apart from using technical indicators, traders also utilize chart patterns to base their trading decisions, whether...
The 5-0 pattern is a reversal harmonic pattern.It follows specific fibonacci ratios (which you can read more below) Interested in learning more about harmonics pattern in general and you prefer videos to text?You'll love this two courses I shortlisted for you on...
Chart patterns provide so many smart ways of applying harmonic patterns in your chart. Some of them are fully automated approaches and some of them are semi-automated approaches. One of them is using the XABCD harmonic chart pattern. The XABCD harmonic is a group of...
The Alternate Bat pattern is popular for incorporating the 1.13XA retracement.Firstly, an important factor is the B point retracement that must be 0.382 retracements or it must be less of the XA leg. Furthermore, it only utilizes a 2 or more BC...
Are Candlestick Patterns Reliable
We loved Marwood Research’s course “Candlestick Analysis For Professional Traders“. Do you want to follow a great video course and deep dive into 26 candlestick patterns (and compare their success rates)? Then make sure to check this course!
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