Harmonic patterns form the basis
for the method of analysis and trading. Harold McKinley Gartley constructed a
new pattern that was further described in “Profits in the Stock Market” , one
of his popular books about stock trading. In the trading chart, harmonic
patterns form a complex type of pattern. Harmonic patterns use Fibonacci levels
along with geometric price actions.
One of the important reasons to
use this complex tool is the ability to identify a potential reverse zone with
a high probability. It also helps to minimize the risk of potential loss and
eventually enter the trade. As stated earlier, the strategy is based on the
Fibonacci numbers and these patterns are used to locate the potential
occurrence of the price turning point.
Why is Harmonic Trading Important?
The main reason to use harmonic
trading patterns is the opportunity to foresee the price reversal. These
patterns help to predict the price movement due to the ability to differentiate
in length, magnitude, and other crucial parameters which the day traders use to
make accurate forecasts. Harmonic trading applies to different types of assets
which include currency pairs, stocks, options, and more.
What is more important is that
harmonic patterns have proved to be an apt instrument when it comes to
identifying price reversal. This is because of their ability to locate and characterize
the most specific price movements.
Taking up a harmonic trading course helps in understanding
the concepts in detail and also helps in the right usage of the harmonic
patterns.Although these harmonic trading
patterns are very precise while forecasting the price movement, they are not
perfect. What is more important to note is that they can sometimes be extremely
misleading if you do not know how to read them. On the other hand, these
patterns certainly have crucial advantages. Hence it is important to note that
having the right knowledge to use these patterns are crucial. Cautilya Capital
I3T3 program presents the harmonic trading course, this helps to gain the right
knowledge to use these patterns.Harmonic Trading helps to lower
the risk of losses and it helps in timely projections of the market beforehand.
It has a high level of accuracy. They provide standardized trading rules when
they are used with Fibonacci ratios. These patterns are suitable to be used in
any timeframe or along with any trading instruments. They can also be used with
other technical strategies, indicators, or theories.When used wisely, the harmonic patterns can be
very useful in determining the price movement and reversal. However, it is
advised to have a good amount of knowledge before one tries their hands on it.
It is advisable to take up a harmonic trading course offered by Cautilya
Capital I3T3 program. The course is designed in such a way that it can be
easily understood even by new traders. This harmonic trading course has been
designed keeping even the beginners in mind with least technical jargons.
Harmonic trading patterns may be complex, but its action procedures to identify
and trade them are relatively very simple.