Harmonic Trading

Pipsaholic

Active member
Jun 3, 2011
266
3
28
#1
Hi,

Does anyone use harmonics as part of their strategy if so does it give you an edge in your trading? Is it worth buying harmonic trading analyser software?

Thanks.
 
Jun 17, 2011
23
0
11
#2
Learn to do it manually, it takes a little longer to learn but it's worth it.
They work well, don't get greedy.

Scott Carney literature is my favorite on the subject.
 

StupidCow

Active member
Jun 25, 2011
196
0
26
#5
You don't need the software or the indicators. Unless you run a quad cpu setup, expect cpu cycles to be stolen by the trading platform, which is typically MT4. Nen, wrote the book (literally) on the how to build a harmonic pattern indicator using MT4. However, it is cpu intensive and you can expect to re-write the entire ball of wax when you move (or are forced to move) to MT5. That's because Metatrader, in all its wisdom has decided to make MT5 so much better, that it won't be backwards compatible with MT4. Poof - just like that, most of your MT4 code is null and void.

Ensign software has the Larry Pesavento harmonic pattern study built into the charting package, but it is tuned specifically for Larry's favorite, which is the Gartley 222, but it will show you the ratios as they are made by the market.

Korharmonics, Search Patterns and the others are all ZUP knock-offs and each one of them have their own set of problems. There a couple web based companies out there that have shown on shame in ripping off Nen's original source code, relabeling ZUP and selling services online, so be on the look out for that as well.

Again, you don't need it. All you need is a good ZigZag indicator to get your eyes used to catching the swings that trigger the X to A leg. After your eyes get used to seeing it often enough, your brain will do the rest by locating B, C and D for you. You will also need a Fibonacci drawing tool, which should already be part of your charting package. That's it. A good ZigZag indicator that does not repaint and a Fibonacci tool. The rest is time, talent and skill, which will come with experience and exposure to the patterns.

Now, get out there and take on those Harmonics!

Oh, to answer your question - yes. They are indispensable to the trader who knows how to use them. Knowing how to apply the structure of harmonic patterns to your actual trading is just as important as knowing how to plot the patterns on your screen manually.

Run a quick search on YouTube for: Pesavento Patterns. Watch videos 4 - 9. Then visit http://harmonictrader.com/price_patterns.htm and read more about the patterns. You don't have to buy anything, just read about the various patterns that Larry did not cover. You could buy books on this stuff, but that's for somebody who is really, really, slow on the uptake. You have all you need on the web and some good sources of information already at your finger tips.

In all honesty, you can get up on harmonics within 1 week and be able to demo trade them that following Monday, if you focus your attention on what's important about harmonics. You are not going to find too much of that on this sight, because quite frankly, this is not a very technical site for traders. Put 'harmonic trading' into your browsers search engine and get yourself up to speed.

Here's another site that covers the ratios themselves rather exhaustively: http://harmonicpatterns.com/. Get familiar with the values for each ratio. Soon, you will be able to look at any nake chart in any chart type, and spot harmonic patterns with nothing but your own eyes. Of course, you will need a Fibo tool to ensure that harmonic ratios are present.


-------------------------
A Truly,
Stupid Cow
 

natureboy

Active member
Sep 18, 2009
770
2
28
#6
Stupid Cow nailed it, not much to say past that. Yes patterns can be the core or at least component of many methods. And yes, what is called zigzag these days (comes from Filtered Waves) is mostly what you need.

The fxgroundworks site has alerts and an indicator, which I had a better time with than the Harmonic Analyzer - your best off customizing an indicator for the patterns and getting your alerts that way. I use Multicharts/EasyLanguage, so not sure how alerts are in MT4
 

market_bull

Active member
Jul 11, 2011
188
6
28
#9
Holy cow! Thanks for that detailed post about harmonic trading. Links bookmarked. Time to glue my eyes to another monitor screen!
 

hatemypips

Active member
Nov 11, 2014
258
5
28
#11
Hi,

Does anyone use harmonics as part of their strategy if so does it give you an edge in your trading? Is it worth buying harmonic trading analyser software?

Thanks.
Tested it a while ago, really bad results, I mean it winning ratio is like random guesses, assuming you follow strict money management rules