Now that you've got the basic chart patterns down,
it's time to move on and add some more advanced tools to your trading arsenal.
In this
lesson, we'll be looking at harmonic price patterns. These bad boys may be a
little harder to grasp but once you spot these setups, it can lead to some very
nice profits!
The whole idea of these patterns is that they help people spot
possible retracements of recent trends. In fact, we'll make use of other tools
we've already covered - the Fibonacci retracement and extensions!
Combining
these wonderful tools to spot these harmonic patterns, we'll be able to
distinguish possible areas for a continuation of the overall trend.
In this lesson, we're going to discuss the following Harmonic Price Patterns:
·
ABCD Pattern
·
Three-Drive Pattern
·
Gartley Pattern
·
Crab Pattern
·
Bat Pattern
·
Butterfly Pattern
Phew! That's quite a lot to cover!
But don't you worry... Once you get the hang of things, it'll be as easy as 1-2-3! We'll start off with the more basic ABCD and three-drive patterns before moving on to Gartley and the animals.
After
learning about them, we'll take a look at the tools you need in order to trade
these patterns successfully.
For all
these harmonic patterns, the point is to wait for the entire pattern to
complete before taking any short or long trades. You'll see what we're talking
about later on so let's get started!
