How To Trade Forex Harmonic Patterns

Trade Forex Harmonic Patterns

AB=CD (50.0)

  1. C point retraces less than 50.0 of AB, CD will be equal to AB
  2. Do not trade an AB=CD pattern with less than 38.2 retracement
  3. Always use Double Top with divergence for entry.
  4. Target 1: 38.2 of AD leg, Target 2: 61.8 of AD leg

ABCD (Alternative ABCD) (50.0, 127.0, 1.414, 1.618.0)

  1. C point retraces more than 50 of AB, CD will be 1.27AB or 1.414AB or 1.618 AB
  2. Always use Double Top with divergence for entry.
  3. Target 1: 38.2 of AD leg, Target 2: 61.8 of AD leg

abcd

Gartley (61.8 XA, 61.8 AB, 127.2 AB) – (60-70% Profit Making Pattern)

  1. B must touch at least 61.8 of XA but must not touch (wick) or close beyond 6 of XA
  2. C touches at least 61.8 of AB but its wick cannot go beyond point A
  3. D point will be at 127.2 of AB in confluence with 78.6 of XA. 127.2 AB extension is more important.
  4. PRZ between 127.2 AB extension and point X
  5. Must have at least valid ABCD pattern
  6. Stop is 2 ATR below X
  7. Target 1: 38.2 of AD leg, Target 2: 61.8 of AD leg

gartley

Butterfly (78.6 XA, 38.2 AB, 127.2 AB) – (Low Profit Making Pattern)

  1. B retraces to at least 78.6 of XA but must not touch (wick) or close beyond 6 of XA
  2. C retraces to at least 38.2 of AB but its wick cannot go beyond point A
  3. D point will be at 127.2 of AB. D point must pass point X
  4. PRZ between 1.27 AB and 1.618 AB
  5. Stop is 2 ATR below previous structure, look left on the chart
  6. Target 1: 38.2 of AD leg, Target 2: 61.8 of AD leg

butterfly

Bat (50.0 XA, 61.8 AB, 161.8 AB) – (80% Profit Making Pattern)

  1. B touches at least 50.0 of XA but must not touch (wick) or close beyond 8 of XA
  2. C retraces to at least 61.8 of AB but its wick cannot go beyond point A
  3. D point will be at 161.8 of AB, 0.886 of XA
  4. Stop is 2 ATR below X
  5. Target 1: 38.2 of AD leg, Target 2: 61.8 of AD leg

bat pattern

Cypher (38.2 XA, 127.2 XA, 78.6 XC) – (80% Profit Making Pattern)

  1. B retraces to at least 38.2 of XA but must NOT close beyond 8 of XA
  2. C is at 111.3 of XA in the XA direction (must close above A), must not close above 1.414
  3. D must touch 78.6 of XC
  4. Stop is 2 ATR below X
  5. Target 1: 38.2 of AD leg, Target 2: 61.8 of AD leg

cypher pattern

 

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